Algeria’s fixed and cellular revenues are projected to exceed US$ 4.7 billion in 2011, growing from around US$ 4.1 billion in 2007.

January 14, 2008

The expected privatization of Algérie Telecom in 2008 should enhance growth in the massive Algerian cellular and fixed market. A new report from Arab Advisors Group fully analyzes the Algerian communications markets.

The telecommunication law of August 2000 set the rules for enabling competition, and created a regulatory authority in charge of regulating the Algerian telecom sector. Previously, the Ministry of Post and Telecommunication was both the operating and regulatory entity in Algeria with respect to telecommunication services.

Algeria’s government is planning to partially privatize Algérie Télécom. The sale was expected to be take place by end of 2006, with the government selling 35% of the operator in an Initial Public Offering (IPO). However the procedures have not been finalized and the tender was yet not launched, but expected to take place in 2008. The ARPT had announced that the process has arrived at a point of maturity and the file is currently with the hands of the Algerian government. Algérie Telecom remained the monopoly fixed operator till 2005. The monopoly status ended in May 2005, when the ARPT awarded the Consortium Algérien des Telecommunication (CAT) a 15-year renewable license to provide fixed, international and rural services.

A new report, Algeria Communications Projections Report was released to Arab Advisors Group’s strategic research service subscribers on December 24, 2007. The report -which has 113 pages and 89 detailed exhibits- fully analyzes the communications markets in Algeria and presents detailed profiles of all the major operators including Algérie Telecom, Consortium Algérien des Telecommunication (Lacom), Algérie Télécom Mobile (Mobilis), Orascom Telecom Algérie (Djezzy), Wataniya Telecom Algérie (Nejdma), and other operators such as those in VSAT and VoIP markets. The report also profiles all the main vendors in the Algerian market including Alcatel-Lucent, Ericsson, Nokia Siemens, NEC, Huawei and ZTE. The report also provides 5-years historical and 5-years projections for many telecom and demographic indicators in the country.

This report can be purchased from the Arab Advisors Group for only US$ 950. Please contact the Arab Advisors Group to get a copy of the report's Table of Contents.

Any investment in this report will count towards an annual Strategic Research Service subscription should the service be acquired within three months from purchasing the report.

“The Arab advisors Group believes that a partially privatized operator will be more attuned to consumer needs and revenue growth. As such the partial privatization will have a positive impact on the growth of the fixed and mobile market in the following years, with increased investment in the segments.” Jawad Abbassi, Founder and General Manager of Arab Advisors Group commented.

Algeria’s mainlines market grew at a Compound Annual Growth Rate
(CAGR) of 9.9% during the period from 2002 to 2006. The fixed line network has a relatively low penetration rate, which reached 9.1 % by end of September 2007. The total number of fixed line subscribers reached 3.109 million subscribers in the third quarter of 2007.

The Arab Advisors Group’s team of analysts in the region has produced over 1,000 reports on the Arab World’s communications and media markets. The reports can be purchased individually or received through an annual subscription to Arab Advisors Group’s (www.arabadvisors.com) Strategic Research Services (Media and Telecom). To date, Arab Advisors Group has served over 450 global and regional companies by providing reliable research analysis and forecasts of Arab communications markets to these clients. Some of our clients can be viewed on http://www.arabadvisors.com/clients.htm