Report: Algerian politics could determine telecom sector

Algeria’s telecom sector could be at the whim of the political situation of the country, reported Pyramid Research in a recent statement. They said that the restructured l-Aurorite de Regulation des Posteset des Telecummuncations (ARPT) and the removal of many government controls could spur foreign investment in the country.
The new report, titled “Algeria: Political Changes May Benefit Telecom Sector” details the competitive analysis of both the fixed and mobile industries in the market. It tracked the market shares of technologies and services in the country as the spread of new technology continues to take hold in the country.
Pyramid said that Algeria can expect to see massive changes this year in its telecom sectors, much as its fellow North African neighbors have. Despite this optimism, Pyramid added that Algeria continues to lag behind other North African countries.
“Algeria’s 2010 telecom revenue CAGR between 2010 and 2015 is 7.1 percent, an indication of healthy growth mainly spurred by a strong increase in revenues for broadband Internet and mobile data. Pyramid forecasts a total market revenue of $6.58
billion by 2015,” said Majd Hosn, Associate Research Analyst at Pyramid. “If Algeria fails to invest in new technology and telecom infrastructure development projects, we expect to see them fall short of our 7.1 percent growth forecast through 2015,” he added.
After blocking the sale of Djezzy to MTN last year, the Algerian government hit Orascom (owners of Djezzy) with $600 million in back taxes and denied them access to import any equipment until all back taxes were paid, strongly hindering operations for Algeria’s largest provider. “Djezzy and the Algerian government have been on turbulent terms lately, with the ARPT having very little involvement in resolving their issues. Lack of action by ARPT in the Djezzy case is a cause for concern for all operators in Algeria if the system remains the way it is,” said Hosn.

By Jonathan Terry