Overview:

This annual report provides a comprehensive overview and analysis of trends and developments in Algeria’s telecommunications market, including forecasts. Subjects covered include:

• Key statistics;
• Market and industry overviews;
• The impact of the global economic crisis;
• Government policies affecting the telecoms industry;
• Market liberalisation and regulatory issues;
• Telecoms operators – privatisation, acquisitions, new licences;
• Major players (fixed, mobile and broadband);
• Infrastructure development;
• Mobile voice and data markets;
• Internet and broadband development and growth;
• Convergence (voice/data, fixed/wireless/mobile);
• Average revenue per user.

Executive Summary

3G mobile licences expected in 2011

Algeria has one of the highest teledensities in Africa. Its relatively well developed infrastructure includes a national fibre backbone and one of Africa’s first FttH deployments. The country’s oil and gas reserves have made it one of the wealthiest nations in Africa.

The market has been affected by the global economic crisis, and its recovery will in part depend on how the wave of social and political unrest currently sweeping the region will pan out. A shadow has also been cast on investor confidence by recent moves of the government to take control of the country’s leading mobile operator.

At over 90% penetration, subscriber growth in the mobile market has slowed considerably, and the attention is shifting to maintaining or improving the average revenue per user which has continued to decline under intensifying price competition between the three networks: Algerie Telecom’s Mobilis, Orascom’s Djezzy, and Wataniya’s Nedjma.

The operators have entered the underdeveloped internet market by launching basic mobile data services, but the licensing of 3G spectrum has been delayed, which has made it difficult for them to fully compete in the broadband sector. However, 3G licences are now expected to be issued in 2011.

In the meantime, fixed-line incumbent Algerie Telecom, itself a mobile operator, has expanded its ADSL and WiMAX networks and upgraded its CDMA WLL system with broadband capabilities. ADSL prices are already among the lowest in Africa. Several of the country’s ISPs are rolling out their own WiMAX wireless broadband infrastructure.

The full liberalisation of VoIP internet telephony is enabling them to become players in the voice market as well. On the other hand, almost half of the country’s ISPs lost their licences in early 2011 due to unpaid licence fees.

Competition in the fixed-line sector received a setback in 2008 when the second operator, Lacom (a joint venture between Egypt’s Orascom Telecom and Telecom Egypt) exited the market after three years of operations, citing regulatory barriers that made it impossible to compete. Only months later, the already delayed privatisation of Algerie Telecom was called off. The number of fixed lines in service fell by 16% the following year.

To provide fixed connections, Algerie Telecom has made extensive use of CDMA wireless technology which supports broadband and full mobility. 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 announced investments of €100 million into national fibre infrastructure over the five years to 2014.

This report contains an overview of Algeria’s telecommunications market, analysis and key statistics, profiles of the major players, and scenario forecasts for the mobile and internet market to 2013 and to 2016.

Market highlights:

• One of the highest levels of mobile and fixed-line penetration in Africa;
• Intense price competition is driving down ARPU;
• 3G mobile licences expected in 2011;
• Government is trying to take control of the country’s leading mobile operator;
• Almost half of the country’s ISPs lost their licences in early 2011;
• Forecasts for mobile and internet markets to 2013 and 2016;
• Profiles of major players in all market sectors;
• Major investments in national fibre infrastructure.

Estimated market penetration rates in Algeria’s telecoms sector – end 2011

1. Key Statistics
1.1 Country overview
2. Telecommunications Market
2.1 Overview of Algeria’s telecom market
3. Regulatory Environment
3.1 Historical background
3.2 Law of 2000
3.3 Regulatory authority
3.3.1 ARPT
3.4 Emerging cybercrime legislation
3.5 Telecom sector liberalisation in Algeria
3.6 Interconnection
4. Fixed Network Operators
4.1 Fixed-line statistics
4.2 Algerie Telecom
4.2.1 Privatisation
4.2.2 Network infrastructure
4.2.3 Wireless Local Loop (WLL)
4.2.4 National backbone network
4.2.5 Domestic satellite network
4.2.6 Next Generation Networks (NGN)
4.2.7 Fibre-to-the-Home (FttH), Triple play
4.3 Lacom (CAT, defunct)
5. Telecommunications Infrastructure
5.1 Alternative national fibre infrastructure
5.1.1 AETC
5.2 International infrastructure
6. Internet Market
6.1 Overview
6.1.1 Internet statistics
6.2 Internet cafes
6.3 PC penetration
6.4 Algeria’s ISP market
6.4.1 Djaweb
6.4.2 EEPAD
6.4.3 Swan Informatique, Satlinker
6.4.4 IcosNet
6.4.5 Smart Link Communication (SLC)
6.4.6 Lacom (defunct)
7. Broadband Market
7.1 ADSL
7.2 Wireless broadband
7.2.1 WiMAX and WiFi
7.2.2 EV-DO
7.3 Mobile broadband
7.4 Broadband via satellite
8. Digital Media / Digital Economy
8.1 Convergence
8.1.1 Voice over Internet Protocol (VoIP)
8.1.2 Triple play
8.2 Digital economy
8.2.1 E-learning
8.2.2 Academic sector
8.2.3 E-health
8.2.4 E-government
8.2.5 E-payments
8.2.6 Blogs
9. Mobile Communications
9.1 Overview of Algeria’s mobile market
9.1.1 Mobile statistics
9.2 Regulatory issues
9.2.1 Registration of subscriber details
9.3 Major mobile operators
9.3.1 Algerie Telecom (Mobilis)
9.3.2 Orascom Telecom Algerie (Djezzy)
9.3.3 Wataniya Telecom (Nedjma)
9.4 Mobile handsets
9.5 Tariffs
9.6 ARPU
9.7 Mobile data services
9.7.1 SMS
9.7.2 MMS
9.7.3 GPRS/EDGE
9.7.4 BlackBerry
9.8 Third generation (3G)
9.9 GSM-R
9.10 Satellite mobile
10. Forecasts
10.1 Forecasts – internet users – 2013; 2016
10.2 Forecast – mobile subscribers – 2013; 2016
11. Glossary of Abbreviations

Table 1 – Country statistics Algeria – 2011
Table 2 – Fixed-line network statistics – 2011
Table 3 – Internet provider statistics – 2011
Table 4 – Internet user statistics – 2011
Table 5 – Mobile statistics – 2011
Table 6 – National telecommunications authority
Table 7 – Fixed lines in service and teledensity – 1995 - 2012
Table 8 – Internet users and penetration rate – 1999 - 2012
Table 9 – Djaweb DSL pricing – April 2011
Table 10 – Mobile subscribers and penetration rate – 1999 - 2012
Table 11 – Mobile subscribers by operator and annual change – September 2010
Table 12 – Djezzy blended ARPU – 2002 - 2010
Table 13 – Forecast – internet users – 2013; 2016
Table 14 – Forecast mobile subscribers – 2013; 2016

Chart 1 – Fixed lines in Algeria – 2002 - 2012
Chart 2 – Internet users in Algeria – 2002 - 2012
Chart 3 – Mobile subscribers and penetration rate – 2002 - 2012
Chart 4 – Mobile operators by market share – September 2010