Algeria is set to become more competitive as 3G is introduced in 2013 and expected regulatory changes allow number portability and local loop unbundling, according to a new report from Pyramid Research.
The report, ‘Algeria: Government Nationalizing Djezzy, Broadband Revenue to Soar as 3G About to Be Introduced’, offers a precise profile of the North African country’s telecommunications, media and technology sectors based on proprietary data from Pyramid’s research in the market.
It provides a detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services and monitors the introduction and spread of new technologies.
“Tight regulations imposed by the government have deterred foreign buyers,” said Pyramid Research analyst Ousmane Yatera. “Nedjma, the only Ooredoo affiliate without 3G services, expressed high expectations from UMTS (Universal Mobile Telecommunications System) technology, and it made a substantial effort to modernise its network in order to comply with the licence requirements.”
Equally, the other operators have been investing a lot of money to improve their infrastructure for 3G. This move will give operators more flexibility to offer data-based services such as mobile video.
“If the mobile operators succeed in building high-quality 3G networks, they could also attract ADSL (Asymmetric digital subscriber line) customers who complain about the quality of service,” Yatera added.
Meanwhile, PR said in an Intelligence Report that the Algerian communications market generated revenue of US$4.9 billion in 2012.
“We forecast US$5.65bn for 2017, for a 2.9 percent CAGR (compound annual growth rate). The market is set to become more competitive as 3G is introduced in the second half of 2013 and expected regulatory changes allow number portability and local loop unbundling,” the report said.
According to PR, the arrival of 3G would boost mobile data ARPS, which should generate 24 percent of total mobile ARPS by 2017.
As the government was talking to Amsterdam-based VimpelCom to acquire its 51 percent stake in Djezzy, PR said that by the end of 2013, the government should be the strongest player in both the fixed and mobile segments.
“Now that that conflict is winding down and new regulations are on the way, we project that the market will grow faster than in previous years. We expect Djezzy and ATM Mobilis to hold nearly 75 percent of the mobile market throughout the forecast period, but we also expect Nedjma to continue to compete strongly against these two government-controlled powerhouses.
“Circuit-switched service generated 74.6 percent of total fixed revenue in 2012, but we expect this figure to fall to 63.1 percent by 2017 because of the increase in revenue from Internet access.
“We also forecast that broadband will capture 99 percent of total Internet access revenue by 2017,” PR added.
