The recent figures from the OECD suggest that the five-day shut-down of internet access in Egypt resulted in direct costs of at minimum US$90 million.

This amount refers to lost revenues due to blocked telecommunications and Internet services, which account for around US$18 million per day, or, on a yearly scale, for roughly 3-4% of GDP.

Though, this amount does not include the secondary economic impacts which resulted from a loss of business in other sectors affected by the shutdown of communication services e.g. e-commerce, tourism and call centres. The IT services and outsourcing sector in Egypt has been a growing part of the economy and relies heavily on the Internet and communications networks.

IT outsourcing firms in Egypt made US$1 billion in revenues in 2010 (or around US$ 3 million per working day), servicing overseas customers through call centres, helpdesks, etc.

The longer term impact of the Internet and communications shutdown on Egypt’s economy is hard to assess.

The shutdown may impact negatively on foreign direct investment in the ICT sector and industries that rely on stable communications and the Internet. The loss of connectivity for five days to these vital business services could make them reconsider overall outsourcing plans. Attracting such firms has been a key strategy of the Egyptian government.

Egypt has other sectors that depend on Internet and communications, notably a vibrant tourism sector.