Titled ‘Algeria: Government Nationalizing Djezzy, Broadband Revenue to Soar as 3G About to Be Introduced’,findings published by Pyramid Research display a summary of the Algerian telecommunications, media and technology sectors based on market research.
A communications sector revenue of US$5.65 billion at a compound annual growth rate (CAGR) is predicted for Algeria by 2017.
Regulatory changes allowing number portability and local loop unbundling are other aspects included in the report.
Development is said to be hampered by the country’s tight regulations driven by the government, which also scares away investors.
Ousmane Yatera, analyst at Pyramid Research, said mobile operator’s success in LTE networks could attract ADSL customers who are unsatisfied with service quality.
Local telecom Nedjma, expected to be the main competitor to the Algerian government, has committed to upgrade its network according to license requirements.
More operators have started the exploration of improving the LTE infrastructure to provide data-based services, including mobile video.
The Algerian government has approached VimpelCom to acquire a 51 per cent stake in local telecom Djezzy.
Djezzy and ATM Mobilis collectively share 75 per cent in mobile market shares.
If the purchase is approved, the government will become the strongest stakeholder in fixed and mobile segments by the end of 2013.
“Now that conflict is winding down and new regulations are on the way, we project the market will grow faster than in previous years,” the report stated.
HumanIPO reported last month on VimpelCom’s intended sale of its African assets.