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TMCNet: Algeria: Telecom Market Country Report

[March 11, 2010]

Algeria: Telecom Market Country Report

Algeria, the second largest country in Africa and a key economy in the Middle East and North Africa (MENA) region, has 33.8 million people. The country secured independence from France in 1962 and has since emerged as a major trading partner of the European Union (EU).

The Algerian economy bore the brunt of political instability and internal strife through the 1990s. Since 2000, however, it is experiencing structural changes afforded by a stable government, accelerating economic reforms, hydrocarbon sector driven GDP growth, trade surplus, improving fiscal position and falling unemployment levels.

Real private consumption in Algeria is increasing. The country has a stable population. Its workforce is expected to increase from 30% of the total population to 40% by 2030, a pointer to the consumption-driven economic growth outlook.

The Algerian economy relies heavily on the hydrocarbons sector, which contributes approximately 60% of budget revenues and nearly 30% of the GDP. The sector also contributes 95% of the country’s total revenue from exports.

In spite of the economic reforms and the relatively optimistic outlook with regard to macroeconomic growth in anticipation of high oil prices, several other structural issues have resulted in Algeria being perceived as ‘risky’. The World Heritage Foundation’s Index of Freedom score for Algeria is 55.7%, implying the country is ‘mostly unfree’. Algeria is ranked 102nd among the 157 countries tracked by the index.

The $6.4 billion telecom market is one of the fastest growing sectors after oil and gas in Algeria. Its share of the country’s GDP increased to approximately 5% in 2007 from 0.6% in 2001.

The Algerian telecom industry has been a major beneficiary of the government’s reforms program, which led to the establishment of a separate regulator, Regulatory Authority for Post and Telecommunications (ARPT), in 2001. Subsequently, new licenses were issued in both the fixed and mobile markets.When telecom services were introduced in 1993, state-owned Algerie Telecom (AT) was the only provider of fixed line and mobile services.

The issuance of new licenses in 2001 and 2003 attracted Orascom and Wataniya, leading telecom players in the MENA region, to Algeria. The entry of these foreign players was catalytic to the evolution of the Algerian telecom industry.

To know more and to buy a copy of your report feel free to visit : http://www.bharatbook.com/detail.asp?id=81670&rt=Algeria-Telecom-Market-Country-Report.html Or Contact us at : Bharat Book Bureau Tel: +91 22 27578668 Fax: +91 22 27579131 Email: info@bharatbook.com Website: www.bharatbook.com Blog: http://bharatbookresearch.blogspot.com Follow us on twitter: http://twitter.com/3bbharatbook

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