2015 Algeria - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

Algerian government prepares for LLU on Algerie Telecom’s network

Although Algeria has a declining fixed-line penetration, the country has one of the highest telecom services teledensities in Africa, with mobile penetration standing at about 115%. The country’s relatively well developed infrastructure includes a national fibre backbone and one of Africa’s most extensive FttP deployments.

Competition in the fixed-line sector has been hampered by regulatory barriers which have made it difficult for alternative operators to compete with Algerie Telecom. However, in recent years there have been substantial changes to the telecoms landscape. 3G was introduced in 2013 following considerable delays, followed by mobile broadband based on LTE in 2014. The government has pressed for 3G to be extended nationally, so extending the reach of basic mobile internet services to the remaining areas which currently rely on 2G.

In parallel with the access networks, the national and international fibre optic backbone is being upgraded to an IP-based next-generation network. The government has invested in this national fibre infrastructure, and despite the financial pressures caused by the falling price of oil, a key revenue earner, the government is committed to its continuing national telecom infrastructure investment program.

Given the intensifying price competition between the three MNOs (Algerie Telecom’s Mobilis, Orascom’s Djezzy, and Wataniya’s Ooredoo) their focus has shifted to developing ARPU and investing in mobile data services based on HSPA and LTE technologies. With the award of 3G licences, the MNOs have the chance to transform themselves into converged service providers and to take a share of the broadband market.

Although the development of Algeria’s fixed-line broadband market has been hampered by the declining number of fixed-lines in service, as well as by an environment which has led alternative operators to invest in fixed-wireless access, the government is expected to pass legislation which will enable players to access Algerie Telecom’s infrastructure through local loop unbundling. This will end the incumbent’s effective monopoly on DSL-based services.

This report contains an overview of Algeria’s fixed-line telephony market, including key statistics, profiles of the major players, and an assessment of recent regulatory measures. The report also details the broadband market, providing scenario forecasts to 2020. In addition, the report reviews Algeria’s mobile market, along with an analysis on recent licenses and the provision of 3G and 4G services.

Key developments:

• New interconnection tariffs introduced to June 2016;
• SEA-ME-WE 4 cable suffers breakage, disrupting international traffic;
• Government signs contract to build Orval cable system linking Oran with Valencia;
• Government proposes legislation enforcing LLU access;
• Company of Telecommunications Infrastructure Algeria set up to manage a national fibre network;
• Regulator pressed to speed up delivery of 3G services nationally;
• Government to raise tax on broadband services and imports of computers in 2016 budget;
• Mobilis contracts Huawei as partner for its network migration to 5G;
• Mobilis extends LTE service to the residential sector;
• VimpelCom sells its 51% stake in Djezzy to a government investment fund for $2.64 billion;
• Algerie Telecom embarks on infrastructure program to build 20,000km of fibre by 2016;
• Ericsson contracted to upgrade Algerie Telecom’s broadband infrastructure; \
• Report updates include telcos’ operational and financial data to Q2 2015, regulator’s activity report and market data updates for 2014; recent market developments.

Companies mentioned in this report:

Algerie Telecom, Lacom, Mobilis, Omnium Telecom Algerie (Djezzy), Wataniya Telecom (Nedjema, Ooredoo), Djaweb, EEPAD, Swan Informatique, IcosNet, Smart link Communication