Algeria has a steadily developing telecom infrastructure with growth encouraged by sympathetic regulatory measures and by government policies aimed at delivering serviceable internet connections across the country.
Fixed internet speeds remain slow, and the country ranks poorly in international tables. Some efforts are ongoing to address this, with the government having pressed Algérie Télécom in early 2021 to increase the minimum rate available from 4Mb/s to 10Mb/s.
Mobile broadband is largely based on 3G and LTE, and the data rates are also low in global terms. Although LTE is available in all provinces, much investment is required from the MNOs to improve the quality of service. The government is encouraging the MNOs to undertake upgrades to LTE infrastructure before investing in commercial 5G services.
Intensifying price competition between the three MNOs – Mobilis, Djezzy and Ooredoo Algeria – together with increases in taxes on voice and data services, have had a negative effect on operator revenue. The difficult operating climate encouraged VEON to sell its entire share in Djezzy in mid-2021, allowing it to focus on its more profitable markets.
BuddeComm notes that the pandemic continues to have a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure.
Overall progress towards 5G may be postponed or slowed down in some countries.
On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.
Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.
The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.
Key developments:
- Regulator again provides MNOs with additional spectrum to address poor services;
- Government approves procedures for implementing MNP, argues for upgrades to LTE networks before MNOs invest in 5G;
- MNO’s LTE infrastructure reaches all 48 provinces, though QoS is considered poor;
- Government initiates national infrastructure project to replace copper network with fibre;
- VEON sells its entire 45.57% stake in OTA to the Algerian National Investment Fund;
- Report update includes the regulator’s market data update to June 2021, telcos’ financial and operating data to Q3 2021, Telecom Maturity Index charts and analyses, assessment of the global impact of Covid-19 on the telecoms sector, recent market data developments.