Orascom, Telecom Egypt to Shut Down Algerian Landline Operator

Orascom Telecom and Telecom Egypt are to liquidate their landline joint venture in Algeria, citing competitive problems with the incumbent operator, Algérie Télécom. 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.

Telecom Egypt said that ever since its inception the company has faced competitive difficulties.

Commenting on the decision to liquidate the company, Akil Beshir, Chairman and CEO of Telecom Egypt, said: "We still believe the Algerian market represents a very promising market for telecommunications services. However, given the competitive difficulties that we have been facing, we have decided to exit the Algerian market and direct our resources to other promising opportunities. For this reason, we have taken the unfortunate decision to liquidate our joint venture with immediate effect."

Algérie Télécom is currently implementing an improvement program to make it more commercial in the preparation for privatisation in 2-3 years time. The company is the country's dominant landline operator, and owns its second largest mobile network operator, Moblis.

Orascom Telecom still owns a mobile network subsidiary in the country -Djezzy, which is also the market leader. According to figures from the Mobile World database, the country has three operators with the following market shares, Djezzy (39.7%), Moblis (36.4%) and Nedjma with 21.5%.

Posted to the site on 14th November 2008