How Political Rules and Regulations in Egypt Helped Etisalat

This article discusses the impact of political rules and regulations in Egypt on Etisalat's business. It explores how the government's investment in technology parks and broadband accessibility has improved the telecom sector. It also examines the government's decision to allow Etisalat to operate in the country and the promotion and distribution strategies adopted by Etisalat in Egypt.

Running head: INTERNATIONAL MARKETING
International Marketing
5/10/2019

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How the political rules and regulation in Egypt helped Etisalat to open and how it
affects the business of Etisalat.
Egypt is supported by the total population of around 90 million, which makes the country one
of the biggest markets of telecom in North Africa. The political crisis in the country followed
by the ‘Arab Spring’ revolution initiated in negatively influenced the telecom sector. Hence,
to improve the condition the government has invested billions of dollars to develop
technology parks and to prolong broadband accessibility1.
The government of Egypt decided to allow Etisalat to operate its business in the country by
offering the best telecommunication services. The government has allowed Etisalat to acquire
NileOnline and Egynet, which resulted in increasing assess of the company in the
International market.
Furthermore, the five year agreement plan between the government of Egypt and Etisalat has
allowed company to taken entry in the country. The motive of this agreement is to open the
direction of 2G and 3G network in the country. The agreement is known as binding
memorandum that has took place between Egypt government and Etisalat group. It also
supported company in establishing the first fixed-line monopoly in the country2.
However, the freedom in the telecommunication industry has been restricted by the
government due to Amid geopolitical tensions, economic discontent, and human rights
abuses. The government of the country has taken number of steps in order to control the use
of Internet in past year. Due to diplomatic crisis between Middle Eastern nations and Qatar,
1 Zawya, Etisalat Misr S.A.E. (10 May 2019), < https://www.zawya.com/mena/en/company/Etisalat_Misr_SAE-
1004760/>
2 Reuters, UPDATE 1-Telecom Egypt to offer 2G, 3G mobile services via Etisalat Misr (10 May 2019), <
https://www.reuters.com/article/telecom-egypt-etisalat-misr-idUSL8N1IR588>

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Egypt obstructed around 21 news sites for purportedly endorsing terrorism, comprising the
website of al-Jazeera3.
The Egypt responsible authorities are regularly shutting down the telecommunications
networks in the Sinai Peninsula, apparently to avert their use by Islamist militants. For
instance, internet and phone services were ceased for eight hours on on September 17, 2016.
The unselective closures have an incapacitating influence on the local residents, who are
incapable to make any of the emergency phone calls or use banks. In addition to this, number
of telecom businesses is experiencing huge losses4.
What was the promotion strategy of Etisalat in Egypt. and what was the distribution
strategy and through whom did Etisalat apply it.
Etisalat has adopted a number of promotion mediums in order to market its brand in Egypt;
some of them are radio, television, and social media on the Internet. In addition to this, the
company is known for hiring celebrity endorsements for the promotion of the services.
Further, corporate social responsibilities are followed by the company in order to enhance the
brand image.
Moreover, in order to offer services in the Egypt market company has segmented its market
based on geographical segmentation. Under this, it has segmented the locations of different
subscribers it has in the market. Additionally, the company offers services in the B2B sector
because according to them it is the market portion which makes maximum use of mobile
phones5.
3 Freedom on Net, Key Developments (10 May 2019), <
https://freedomhouse.org/report/freedom-net/2017/egypt>
4 Paul Budde, Egypt - Telecoms Infrastructure, Operators, Regulations - Statistics and Analyses, (10 May 2019),
< https://www.budde.com.au/Research/Egypt-Telecoms-Infrastructure-Operators-Regulations-Statistics-and-
Analyses>
5 MBA Skool, Etisalat Marketing Mix (4Ps) Strategy (10 May 2019), < https://www.mbaskool.com/marketing-
mix/services/17573-etisalat.html>

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In order to expand operations in the Egypt market, Etisalat has adopted Cross-channel
approach which has supported it in becoming the leading mobile telecoms provider. The time
Etisalat extended its business in Egypt in the year 2007, Orange and Vodafone dominated the
market. With the help of its innovative cross-channel approach, Etisalat is continuously and
quickly building its business, binding the flow in mobile communications enhanced by the
Arab Spring. Today, the company has around 35 million subscribers and is considered to be
the second biggest provider of mobile telecoms service in Egypt6.
The main strategy of Etisalat is to differentiate itself with the help of innovation and quality
of the network. As aligned with its commitment to offer the best customer service, Etisalat is
focused on offering a transparent model of pricing, which is different from the opaque pricing
models adopted by its competitors. The company does not charge any hidden charges from its
customers thus allow people to know their exact amount of bill every month. Adopting this
strategy was very essential for the company in order to reach the maximum number of
customers and to stand out in the crowd. Being the first introducer of the 3G network in
Egypt, Etisalat planned to take the benefit of this technology in order to offer innovative
services that could directly provide benefits to the consumers7.
In order to differentiate the services with the help of innovation, Etisalat initiated a
partnership with the Genesys in order to introduce a ground-breaking video chat service for
the consumers together with its traditional infrastructure of the contact center. It is said to be
the first time that this type of service, comprised of a vido IVR and video agents, is being
provided in Egypt. Video chat option is a significant step for the business.
6 Genesys, Cross-channel approach helps Etisalat become Egypt’s leading mobile telecoms provider (10 May
2019), < https://genbin.genesys.com/old/resources/success-stories-and-infographics/etisalat.pdf>
7 Export. Gov, Egypt - Business Travel (10 May 2019), < https://www.export.gov/article?
id=Egypt-Business-Travel>

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Bibliography
Genesys, Cross-channel approach helps Etisalat become Egypt’s leading mobile telecoms
provider (10 May 2019), < https://genbin.genesys.com/old/resources/success-stories-and-
infographics/etisalat.pdf>
Paul Budde, Egypt - Telecoms Infrastructure, Operators, Regulations - Statistics and
Analyses, (10 May 2019), < https://www.budde.com.au/Research/Egypt-Telecoms-
Infrastructure-Operators-Regulations-Statistics-and-Analyses>
MBA Skool, Etisalat Marketing Mix (4Ps) Strategy (10 May 2019), <
https://www.mbaskool.com/marketing-mix/services/17573-etisalat.html>
Zawya, Etisalat Misr S.A.E. (10 May 2019), <
https://www.zawya.com/mena/en/company/Etisalat_Misr_SAE-1004760/>
Export. Gov, Egypt - Business Travel (10 May 2019), < https://www.export.gov/article?
id=Egypt-Business-Travel>
Freedom on Net, Key Developments (10 May 2019), <
https://freedomhouse.org/report/freedom-net/2017/egypt>
Reuters, UPDATE 1-Telecom Egypt to offer 2G, 3G mobile services via Etisalat Misr (10
May 2019), < https://www.reuters.com/article/telecom-egypt-etisalat-misr-idUSL8N1IR588>