Algeria’s MNOs secure more spectrum to improve service quality

Fixed-line penetration was in decline for a number of years before the trend was reversed in 2015, with the momentum for growth supported by fixed-wireless connections based on LTE


Sydney, Sept. 01, 2020 (GLOBE NEWSWIRE) -- Just released, this edition of Paul Budde Communication’s focus report on Algeria outlines the major developments and key aspects in the telecoms markets.

Read the full report: https://www.budde.com.au/Research/Algeria-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

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.

Government-funded efforts, including the Universal Service Telecommunications (UTS) program, are continuing to ensure that fixed-line infrastructure is extended to underserved areas and thus the slow growth in the number of fixed-telephony connections should be maintained during the next few years.

Mobile penetration is growing steadily despite the tardiness of the regulator to licence 3G and LTE services. Licence obligations have ensured that LTE services have been extended rapidly, with Mobilis providing coverage to all provinces as of February 2020.

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. A new roaming agreement with Tunisia will place further pressure on revenue. The MNOs have responded by investing in upgrades to LTE infrastructure, while Mobilis has also trialled 5G and is expected to launch commercial services later in 2020.

For many years the development of Algeria’s fixed-line broadband market was hampered by the limited reach of the fixed-line network. This created an environment which encouraged alternative operators to invest in fixed-wireless accesses. In common with other markets in the region, mobile connections account for the vast majority of internet accesses.

This report contains an overview of Algeria’s fixed-line telephony market, including a review of national and international network infrastructure. The report also covers the fixed and fixed-wireless broadband market, providing key statistics, profiles of the major players, and subscriber forecasts to 2025. In addition, the report reviews the mobile market, providing analyses on operator strategies and their operating and financial performance, as well as an assessment of recent spectrum licensing.

BuddeComm notes that the outbreak of the Coronavirus in 2020 is having 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 provides MNOs with additional spectrum to address poor services;
  • Mobilis’s LTE infrastructure reaches all 48 provinces;
  • Government initiates national infrastructure project to replace copper network with fibre;
  • Mobilis expecting to launch 5G services by end-2020;
  • VEON increases stake in GTH to 98.2%;
  • Djezzy Telecom trials smart agriculture concept;
  • Report update includes the regulator’s market data update for 2019, telcos’ financial and operating data to Q1 2020, Telecom Maturity Index charts and analyses, assessment of the global impact of COVID-19 on the telecoms sector, recent market data developments.


Companies mentioned in this report:
Algérie Télécom (Mobilis), Optimum Telecom Algérie (Djezzy), Wataniya Telecom (Nedjema, Ooredoo), Djaweb, EEPAD, Swan Informatique, IcosNet, Smart link Communication

Read the full report: https://www.budde.com.au/Research/Algeria-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

 

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