Algeria is to see broadband services bolstered as new reports indicate that the high-speed Internet service is currently driving the country’s IT sector.
By 2018, government information says the telecom market in the country will be estimated at around $7.4 billion and the sector with the most potential is broadband services.
According to Frost & Sullivan, “mobile subscriber growth rates are projected to slow down even as mobile penetration rate was expected to reach 100 percent by the first quarter of 2012.”
But with Algeria only recently jumping on the 3G development, the telecom industry hopes that by boosting broadband penetration the sector can continue to grow at high speeds.
Frost & Sullivan has said that despite this optimism, there must be an increase in regulatory bodies to oversee the development of the IT sector in the North African country or it could face a rise in illegal and illicit activities.
As of the end of last year, broadband penetration was reported at a tiny 2.5 percent, but with demand growing in the country, most analysts and government officials believe this is only the beginning of the sector beginning to pull its weight.
“Young consumers access the Internet through shared facilities like Internet cafes which are gaining popularity in the country. This trend restricts the adoption of individual broadband connections which are mainly adopted by the enterprise segment,” said Frost & Sullivan Research Analyst Jonas Zelba in comments published on the company’s website.