Social distancing leads to higher data usage
- Social distancing measures, online leaning in schools and universities along with employees working from homes, should lead to higher data revenues for internet service providers.
- Mobile revenues and mobile internet revenues as well should witness an increase, mainly on higher usage; driving ARPU growth.
- The Ministry of Communication agreed with the four mobile network operators in Egypt, to provide and increase the monthly download capacities of internet subscriptions by 20% for all users to support social distancing and online learning decisions, where the ministry bears the cost; hence no cost pressure on internet providers.
- Business process outsourcing companies and call centers should benefit from the current social distancing in the global and local market, given a witnessed increase in demand for delivery services.
Restrictions on movement support financial inclusion potential
- COVID-19 outbreak is now a motive to speed up government plans to promote financial inclusion.
- In-light of movement restrictions, consumers are gradually shifting to online platforms to pay bills and purchase goods.
- CBE waived fees and commissions on operations that are executed through mobile wallets and imposed daily limits on cash withdrawals and deposits to stimulate a cashless economy and prevent the spread of the virus.
- E-payment companies operating in the market offering basic services/necessities including bills, telecom, education and pre-paid electricity cards should witness solid transaction flow on their network.
- E-Payment companies offering services through banking channels/e-channels and mobile wallets might witness growth given the new regulations issued lately by CBE.
- However, if COVID-19 outbreak puts massive downward pressure on economic conditions and changed consumer spending patterns; e-payment companies will lose transaction volumes for entertainment and amusement.
- COVID-19 outbreak might support government plans for financial inclusion and digital transformation.