The report, tagged ‘Algeria: Government Nationalizing Djezzy, Broadband Revenue to Soar as 3G About to Be Introduced’, gives an accurate summary of the Algerian telecommunications, media and technology sectors based on proprietary data from Pyramid’s research in the market.
Ousmane Yatera, Pyramid Research Analyst, said that tight regulations that have been imposed by the government have deterred foreign buyers.
The only Ooredoo affiliate without 3G services, Nedjma, expressed high expectations from Universal Mobile Telecommunications System technology, and it made a substantial effort to modernize its network in order to comply with the license requirements.
Similarly, 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.
Yatera also believed that if mobile operators are successful in building high-quality 3G networks, they could also attract Asymmetric digital subscriber line (ADSL) customers who are not satisfied with the quality of the service.
In an intelligence report, pyramid research said that the Algerian communications market generated revenue of US$4.9 billion in 2012. They also added that they predict US$5.65bn for 2017, for a 2.9 percent CAGR (compound annual growth rate).
The arrival of 3G will 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, Pyramid Research said that by the end of 2013, the government should be the strongest player in both the fixed and mobile segments.