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Free Internet Access Is Profitable In Egypt

Posted by ryuzaki0 on from the fat-cats-splitting-quarters dept.

prostoalex writes "With the demise of free Internet access providers, it's interesting to see this model working in Egypt, where the state-owned telecom allows people to dial-up for free as long as they pay the regular phone access fees. Associated Press quotes the phone line charges being 25 cents per hour. The ISPs that promote free Internet access from Telecom Egypt are then given their share of the profit."

13 of 185 comments (clear)

  1. Just what I need... by spakka · · Score: 5, Funny

    more bloody pyramid schemes

  2. Mutual benefit by nuggz · · Score: 3, Funny

    Good idea, the phone company makes more money due to more phone usage.
    They just pay out a small portion for this, it is like quantity based discounts that other companys use.

  3. Around the world by Banjonardo · · Score: 4, Interesting

    Ig, or Internet Gratis, is one of the biggest ISPs in Brazil, and it's free. It runs on the advertisements it displays.

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  4. 25 Cents US? by drinkypoo · · Score: 4, Interesting
    That represents a tiny pittance in our terms; You can get that much by finding pennies on the ground outside the supermarket.

    How much is that in terms of the average Egyptian's income?

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    1. Re:25 Cents US? by Drawkcab · · Score: 3, Informative

      Their per capita GDP is $3000 per person, about 1/11 of the US, and the distribution of wealth/income is not unreasonable. So lets say that is the equivalent of $3/hour in terms of local purchasing power. That compares favorably to the way dialup ISPs used to work before flat rate plans became commonplace, and they are not committed to any monthly bill, they only have to pay for what they need. Internet Cafes are also popular in Egypt, another way that the general population has affordable access to the net.

  5. Successful in India by daaku · · Score: 3, Informative

    The same strategy is being used in India, and its quite successful. Its not exactly free, as you pay for phone access plus more, but there's no account setup, username/password and so on. Its extremely convenient, you get charged for what you use with your phone bill.

  6. Not big news by Stephen+Samuel · · Score: 4, Informative
    I remember similar things going on in England. As I remember it, there was a big fight going on about who should get what part of the reciprocal payments for customers using the service. This was a couple of years ago.

    The real fact of the matter is that the service isn't free.. It's just being paid for through your phone bill.

    Because I get my ADSL from my phone company (Telus) I can also pay for it through my phone bill... Does this mean that I'm getting my ADSL for free too?

    (at $40CAN/month ($25US) for 1.5megabit down and 500kbit up, some people might claim that I really do)

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  7. I'll take unlmited free local calling any day... by aquarian · · Score: 3, Interesting

    One of the biggest enablers of commerce in the US is that we can just pick up the phone and yak without thinking about the cost. Letting your fingers do the walking can be quite expensive in many countries. While low cost internet access is a nice thing, low cost everyday phone service is far more important. I'll take free, unlimited local calling any day, then gladly pay $20/month for internet access if need be.

  8. Not Free by mc6809e · · Score: 3, Interesting

    This is a state-owned monopoly telephone system that is very profitable. In essence, the state is providing "free" internet access by over-charging everyone else for telephone service.

    This is really a strategy by the State of Egypt to keep itself firmly in control of the Internet in the country. The deals with local ISP's to split the money are just to ensure the ISP's loyalty. They are being bought by the state.

  9. The view from the trenches in Ireland by afflatus_com · · Score: 4, Insightful

    Here in Ireland, all dialup Internet access is this type of "free", in which you are billed for the phone time online.

    For the phone company and ISPs, this "Free" Internet Access Is Profitable In Ireland, also.

    Few people like it, and would rush to support the other side of the fence, in which there is a flat rate of about $40 euro a month for dialup, and that is it (following the typical unmetered approach available in most of North America). An option of pay-for-phonecall is good, but when the phone company colludes with ISPs to make it the only option available, it cripples the country's online growth.

    The largest ISP in Ireland is IrelandOnline(IOL).
    The nexus of protest against this forced free-but-pay-for-the-phonecall scam is logically located at IrelandOffline.org

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  10. Poland by jfedor · · Score: 4, Insightful

    In Poland, we've had "free" dial-up like this for about five years now.

    But I wouldn't call it free in the presence of people that still are in this dial-up hell if I were you.

    -jfedor

  11. Slashdot discovers hot water by hysterion · · Score: 5, Informative
    Where have you been?!?

    It's not just Egypt, it's any place with no flat local phone rates, i.e. basically everywhere except North America . Example: it's the standard in Switzerland.

    (See also Estonia, Brazil, Portugal, India, Ireland, Argentina, Guatemala, England, Poland, ...)

    Slashdot editors need to get out more.

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  12. Why Single out Egypt? by evilviper · · Score: 5, Informative

    Free Internet can work anywhere that people are already paying per-minute for local phone calls. It doesn't work in the US where unlimited local calls are free.

    I think it would be more appropriate to call it "Free Internet Fails in USA, works everywhere else"

    Anyone know why Egypt is getting singled out?

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