Telecom Shake-Up: NTRA Approves Price Hikes, Plans VOIP Return

• The National Telecomm Regulatory Authority (NTRA) approved internet and mobile price hikes of up to 30%, citing economic pressures.
• Egypt’s telecom agency is finalizing plans to reintroduce Voice Over Internet Protocol (VOIP) calls.
• These changes signal both challenges and opportunities in Egypt’s evolving telecom landscape.

Rising Costs and a Tech Revival

Egypt’s National Telecomm Regulatory Authority (NTRA) has approved a hike in internet and mobile phone prices, with increases reaching up to 30%. These adjustments come amidst rising operational costs for providers like Telecom Egypt and Vodafone. Companies have been grappling with inflation and higher equipment expenses.

At the same time, the NTRA is preparing to allow Voice Over Internet Protocol (VOIP) services, such as WiFi calling, for the first time since their second ban in 2015. VOIP’s reintroduction could disrupt the market by enabling affordable and convenient voice calls over internet networks.

Telecom Egypt recently announced increased prices, adding to earlier adjustments in December, reflecting a trend of rising costs across the sector. Thus, the potential market disruption associated with the introduction of VOIP has been effectively contained. At the same time, users are expected to enjoy limited benefits from VOIPs.

Balancing Economic Pressures and Connectivity

The telecom price hike comes at a time when Egypt’s population is increasingly reliant on digital connectivity for work, education, and entertainment. While price adjustments address economic pressures faced by telecom providers, they pose challenges for consumers already burdened by inflation.

Meanwhile, VOIP services, once banned over regulatory concerns, hold the potential to democratize communication by offering cheaper call options. That upside to users has, however, been absorbed by telecommunications companies via three price increases throughout 2024.

The latest increment is expected to be around 30%, reported Enterprise. That is a percentage similar to previous price increments (January 5 and December 8) for mobile phone and internet services. The consecutive and simultaneous price hikes and VOIP reintroduction highlight the delicate balance between telecom viability and affordable connectivity.

Connectivity at a Crossroads

The NTRA’s decisions will likely shape Egypt’s telecom industry for years to come. Rising internet and mobile costs could lead to a shift in consumer behavior. That is, users prioritizing essential services or seeking new alternatives.

The reintroduction of VOIP services could also attract tech-savvy users and foster innovation in communication, potentially giving local startups an edge in the digital economy. By enabling WiFi calling, Egypt could position itself alongside global markets that embrace affordable, internet-driven communication when leveling private and public interests.

However, challenges remain. Striking a balance between rising costs and accessible technology will be crucial for fostering an inclusive and connected society. As Egypt navigates these changes, its telecom landscape is poised for a transformation with the recent introduction of E-Sims and plans for installing 5G capabilities.