Interview with Hakan Cervell, Vice President and Head of Saudi Arabia and Egypt at Ericsson Middle East & Africa
As we start, we would like to know what the Egyptian market represents for Ericsson’s global management?
Ericsson has a rich history of over 125 years in Egypt, dating back to the launch of the first telephone connectivity system between Cairo and Alexandria in 1897. Since then, we have continued to strengthen our presence in the country and consider Egypt as a vital market in the African continent. The Egyptian market represents a great opportunity for Ericsson to leverage our technology and expertise to help drive the digital transformation and contribute to the country’s economic growth. We are committed to building on our strong legacy in Egypt and continuing to deliver innovative solutions and services to our customers.
Why does Ericsson always feel optimistic regarding its operations in the Egyptian market?
Egypt’s large population of over 100 million presents tremendous investment opportunities for companies. The nation has demonstrated its commitment to digital transformation and has set ambitious goals for 2030 with its Communications and Information Technology Strategy and the Digital Egypt Initiative. These initiatives aim to develop the infrastructure of the telecommunications and information technology sectors, promote digital inclusion, and encourage creativity. This forward-thinking approach puts Egypt on the path to becoming a knowledge-based economy.
The Egyptian Ministry of Communication and Information Technology has also launched several projects to strengthen the telecommunications sector, including improving the quality of fixed-wide broadband, providing high-speed internet, expanding regional network coverage, and enhancing telecommunications services. The government is expediting the issuance of cellular tower construction permits to telecom companies and rolling out new frequencies to increase network efficiency and improve the quality of telecommunications services.
Ericsson’s presence in any market depends primarily on its partnership with telecom operators. So how is your relationship with the four telecom operators in Egypt?
Ericsson’s partnership with telecom operators is crucial to its presence in any market, including Egypt. We are proud to work closely with all four major telecom operators in Egypt, Telcom Egypt Vodafone, Orange, and Etisalat Misr.
Our goal is to provide our partners with advanced technologies to help them maximize the use of 4G telecommunications services based on Ericsson’s latest network technologies. We believe that by equipping our partners with the latest tools and expertise, we can help them provide more efficient and integrated telecommunications services to their customers.
How is Ericsson’s relationship with the Egyptian government?
We have had a longstanding and fruitful relationship with Egypt. Our recent meeting with ICT Minister Dr. Amr Talaat at the Mobile World Congress (MWC) 2023 in Barcelona was a testament to our strong partnership. During the meeting, Dr. Talaat commended Ericsson’s operations in the Egyptian market and encouraged us to continue providing advanced technologies while creating jobs for Egyptian youth through training and qualification programs.
As a company, we recognize the growth and potential of the Egyptian telecommunications sector and its positive impact on the country’s economy. We are committed to playing a significant role in this development by helping telecom operators maximize the use of the telecommunications services they offer to consumers.
Given the importance of the Egyptian market to your company, does it concern you that the 5G technology licenses still need to be made available?
At Ericsson, we understand the importance of Egypt’s market and its potential for growth in the digital era. We believe that 5G technologies will play a critical role in enabling numerous emerging technologies, such as artificial intelligence, the internet of things and edge computing, to transform Egypt’s economic and social systems.
According to the Ericsson Mobility Report issued in November 2022, 5G subscriptions in the MENA region are expected to reach around 270 million in 2028, representing 30.7 percent of total mobile subscriptions. As a result, Ericsson is committed to supporting countries in the MENA region, including Egypt, to expedite the integration process of 5G networks.
We are pleased to report that we have already carried out successful trials in Egypt in cooperation with Etisalat Misr to install these networks. We are eager to work with the four Egyptian telecom companies to bring 5G technologies to the market as soon as licenses are given.
We recognize that the Egyptian political leadership acknowledges the potential of 5G technologies and that they are a top priority on the Egyptian political agenda in the coming years. At Ericsson, we share this vision and are committed to supporting the government in this endeavor.
What are the main challenges that you face in your operations in Egypt?
While operating in any market can present its own unique set of challenges, Ericsson is committed to overcoming them and delivering the best solutions to our customers. Like many companies operating in Egypt, we do face some challenges related to the fluctuation of exchange rates. However, we are confident in our ability to manage them effectively. Despite these short-term obstacles, we recognize the immense potential of the Egyptian market, which is one of the largest in the region, and benefits from a highly qualified and talented workforce, with many capable graduates who can lead the technology sector. We remain committed to supporting the Egyptian market and leveraging our global expertise to overcome any challenges that may arise.
How do you deal with the fierce competition from other companies?
Ericsson embraces healthy competition, as it encourages innovation and promotes the development of the best solutions for customers. In Egypt’s highly competitive market, we offer advanced solutions, such as 5G technology, cloud, and edge computing, and IoT applications, to stay ahead of the competition. Our team works closely with customers to understand their unique needs, and we continuously strive to improve our offerings to maintain our position as a market leader.
Does Ericsson plan to increase its investments in Egypt in the coming period?
Ericsson has a long-standing commitment to investing in Egypt, and we plan to continue to do so in the coming period. Our investments are diverse, including large-scale projects such as the new administrative capital, as well as investments in Egyptian human capital. We also have the Ericsson Center for Artificial Intelligence and Analysis located in Egypt, which is run by a team of talented Egyptian professionals and serves many countries.
The Center has already made significant contributions, including shipping the first knowledge program used worldwide to design and improve services. We remain committed to developing local talent in Egypt, particularly in the fields of artificial intelligence and software development, to help drive Egypt’s digital transformation. As we continue to invest in Egypt, we will work closely with our customers and partners to identify new opportunities for growth and innovation.
