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 reports the Arab Advisors Group. The expected privatization of Algérie Telecom in 2008 should also enhance growth in the massive Algerian cellular and fixed market.
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.
"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.
Posted to the site on 14th January 2008
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