Prepared by: Magda Ismail
Director, IT Programs
Ministry of Communications & Information Technology
magdam@idsc1.gov.eg, mismail@mcit.gov.eg

One of these changes includes the fast-adopted concept of commerce over the Internet or more commonly named "Electronic Commerce." It has changed the ways of doing business for thousands of private sector companies and government entities in the world. It has revolutionized businesses and has introduced new forms of business models to traditional and conventional businesses and operations for the private and public sector. The private sector in many countries of Africa has taken the initiative to incorporate the use of e-commerce in their business operations. However, government organizations are still on their way to picking up the momentum and utilizing electronic commerce in their mainstream operations. Moreover, telecommunications operators in many African countries are only taking their first baby step towards exploring the potential behind support of Internet and e-commerce services to the general public. Many of these operators are still in the initial phase of restructuring their monopolistic service structures and upgrading their basic services.

It important that national operators are aware of the potential of electronic commerce and the need to provide a suitable telecommunications infrastructure in order to enable quick and efficient utilization of electronic commerce applications and financial transactions over the Internet. This will indirectly build trust in local and foreign investment in the country and boost the country's economy. It will also introduce new revenue streams for the national PTT.

Telecom Operators have been depending on a source of revenue based on provision of basic fixed line access. This has been their major source of revenue, acting as monopolies in their respective countries and believing that this was the responsibility of the government to provide universal access to the general public. The situation has changed. Operators are expanding service provision to Internet, mobile and electronic commerce. Their functions are changing to include very different nontraditional services. (2)

In addition to providing the necessary telecommunications infrastructure to the public, the operator can be an active player in building awareness and providing incentives for inducing the local market to embark on e-commerce. Personnel working at operator's offices usually come from a very bureaucratic environment and are employed by the government. This workforce should be educated and brought up to speed to understand the needs of the new economy and the new role the operator should be playing in this new world economy. The operator will no longer be a sole monopolistic supplier of telecommunications and Internet services. With time, there will be a global pressure towards privatization of these services. Therefore operators need to be proactive in their thinking and in provision of their services to the general public.

There are many examples of the shift of mentality of telecommunications operators worldwide. Many telecommunications companies have formed strategic alliances with other companies to provide data services and build content. Dutch KPN Mobiel, which is Dutch Telecom's mobile unit, joined forces with Ericsson to develop mobile Internet technology (3). Telstra, Australia's Telecom has created its eConnect business and spinned it off to a company of its own. There are many numerous examples of telecom companies that are even providing support to the private sector. France's PTT, France Telecom launched its Telecommerce initiative two years ago. It is a service, which is provided by the PTT to facilitate and secure selling of product/services on the Internet as well as aiding the construction of commercial websites. Swisscom has partnered with the postal services authority to provide a business-to-business portal. These efforts contrast very much with socialist mentalities of many PTTs in Africa. Other partnerships exist between telecom companies and banks in order to provide WAP applications. Japan's NTT Communications Corp and Akamai Technologies Inc recently started a trial service, delivering Web content in Japan. The trial aims to speed up transmission of large quantities of data for corporate clients who are reliant on e-business. Telcos are also working on Internet standards. The goal is to provide a better environment/experience with rich content on broadband links, while creating new opportunities for service and content providers to meet customer demands.

Egypt

There have been efforts by the National Operator in Egypt: Telecom Egypt. President Hosni Mubarak gave a strategic speech, which was a turning point in the history of information and communication technology in Egypt, at the National Conference for Information Technology (9/99). This speech provided the political support that was long needed to push the country forward in information and communication technology. Following the presidential elections, a decree was passed to create a new Ministry of Communications and Information Technology. This ministry is headed by a minister who comes from the private sector, the government cabinet information center and from academia. Since the establishment of this ministry, there have been many reformative efforts and initiatives taken by the Ministry and Telecom Egypt - the country's incumbent operator. Some of the initiatives that have taken place include the following:

• Working Groups: the Ministry has formed seven working groups that meet once a week. These working groups focus on business development, legal development, human resource development and technical development of the ICT industry. The private sector for the first time in the history of Egypt has a direct lobby with the government where it may express its views and concerns. Moreover, the private sector is currently participating in writing the telecommunications law/act for the country.
• Voice Telephony: Telecom Egypt has provided VoIP service to the public through a virtual service provider.
• Premium Service: Telecom Egypt has provided Internet access through a 900 number. A user dials a specific number and gets instant Internet access. The call is surcharged. Revenue from this service is equally shared between TE and the Internet Service Provider that is providing this service.
• Marketing Department: TE has finally created a marketing department, since for the first time it will compete with companies in the private sector in provision of various services.
• Reduction of Tariffs: E1 connectivity was reduced by 50% at the end of 1999.
• Modernization of the National Postal Authority: Postal authorities are becoming modernized in order to directly provide electronic commerce services to the public.
• Incentive Packages: The Minister of Communications and IT recently announced a 5-year tax vacation for all CIT activities.
• Smart Village: This project is supported and promoted by the government and will depend on private sector investment. This is a silicon-valley alike project which will focus on a) software development b) IT and Internet Services and Consultancy c) Training in Telecommunications and IT d) Business Support and Financial support for new ICT projects.

Therefore these initiatives are an indication of the changing mentality of the operator and the government with regards to telecommunications and IT services.

Other focus areas that the telecommunications sector should look into, are related to a concise but thorough list of suggestions mentioned in a World Bank and UNECA report (4), namely:

• Low cost and reliable access to international bandwidth
• Low cost and reliable local bandwidth connectivity
• Countrywide reliable local cost access to ISPs
• Low cost access to network equipment
• Widespread public access to networked computers
• An educated and trained user and provider base
• Support for the development of national and African Internet content.

If this concise but to the point wish-list can be accomplished within the coming five years, then the African continent will truly take its people to another level of Internet & business development.

Yet in order to achieve the wish list above, there are many critical issues yet to be addressed:

• What business models can be used to guarantee the successful reform of the structure and operations of monopolistic national PTT's to a modern, free market structure?
• How can the government affordably build human capacity at Telecom Operators (those of which are still with the government) to absorb, utilize and support (relatively) new technologies as Internet and electronic commerce?
• What is the role of the operator in facilitating the use of the Internet and electronic commerce in a nation?
• How can the minds and mentalities of decision makers in PTTs be convinced of the potential of a non-monopolistic/controlled environment?

The Africa Internet and Telecom Summit at The Gambia will be addressing the issues above and provide for an excellent forum for tackling these issues.

(1) Internet Economic Toolkit for African Policy Makers. http://www.infodev.org/projects/finafcon.htm.
(2) It was suggested in a recent article (http://www.connected.org/learn/david.html) that Telecom companies provide licenses to PETS (peripatetic electronic teachers) - which are a higher education teachers who act as freelance agents, providing a virtual presence in public spaces.
(3) www.totaltele.com
(4) Economic Internet Tookit for African Policy Makers: An Afric Internet Forum, UNECA and infoDev Project. Charles Kenny et al.