Posts
& Telecommunications: Integrate the new
technologies |
Algeria has the lowest telephone
coverage rate in Africa. In fact, only 5% of the
population has a telephone compared to the 700.000
waiting demands for the wire phone and 200.000
for the mobile (figures of 1999). A recent study
has however showed that there was 7 million creditworthy
potential telephone subscribers and 5 million
for the mobile phone. It is expected by 2010 a
25 % telephone density and 30% for the mobile.
An international call for tenders was launched,
by the state, giving to the Egyptian Orascom the
implementation and the exploitation of the second
GSM license which is seen as a revolutionary operation
in this sector and which was always under the
state responsibility ministry
of posts and telecommunications). A third
license shall be proposed in 2003 as well as a
call for tenders concerning the telephone. This
is a good investment opportunity for major telephone
companies such as Ericsson, Siemens and Motorolla.
Reorganization
of the Posts and Telecommunications |
The P&T sector is subject
to deep reforms and restructuring aiming at ensuring
the competitiveness of its structures in the market
economy. This strategic reorientation should ensure
the provision of a better service to the citizens.
It is for this purpose that the governmental major
axis revolve mainly around the reorganization
of the legislative and regulatory framework of
the P&T sector in order to well base the reforms
on a solid , transparent and a safe basis. In
this respect, and within the framework of the
market opening to competition , the regulatory
authority of the posts and telecommunications
(ARTP) ensures the effective implementation of
the reforms and the conformance to the procedures.
The 2000 new law led to the split
of the old state institution, exploiting the whole
activities of the P&T sector, into two companies
: Algerie Telecoms and its affiliates ( Mobilis
for the mobile phone ;and Djaweb for internet
) and Algerie Poste and its affiliate Sarii Post
for express mail. It is the first sector to be
open to competition in 1994 with the presence
of DHL
International. Both FEDEX and UPS have withdrawn
the request for proposals right after the launching
of a bid of interests indication by the regulatory
authority of the P&T. Speaking of this market,
Mr
Rezzoug , General Manager of DHL, notices
that: " Algeria is a country with huge
potential where investors can have lots of advantages
in terms of tax exemption, customs and fiscal
facilities which is seen as the leitmotiv of the
investment promotion". He also asserts:
" The privatization of the telecommunications
sector will surely and considerably enhance the
market".
Regarding internet, Djaweb is
the new internet access provider. It offers a
complete and elaborated range of services with
competitive costs and covering most of the national
territory. However, and despite the fact that
internet is not available in all households it
is presently easily accessible thanks to the ministry
contribution which facilitated the opening of
cyberspaces all over the country. Four private
providers have been created (Gecos,
Eepad
in partnership with Wanadoo, Solinet et Icos.net)
competing thus with the public provider Cerist;
whereas a free access mode( without subscription)
has been launched by the ministry. According to
a survey conducted in 2001, nearly 6 000 companies
are connected to internet without fully using
its possibilities( internal massaging, interactive
sites
etc).
Appeal
to Partners |
Algerie-Telecoms
exploits the first GSM license and signed a contract
of association with Ericsson to launch 500 000 lines
within this year. However, the perspectives of Algerie
Telecoms go beyond its previsions ; " It
is known that the developing Maghreb countries are
good markets for the telecommunications sector .
There's a real interest in partnerships but we see
that otherwise. We need more than purchasing equipment
and our partners should think and act accordingly"
explains Mr
Messaoud Chettih , General Manager.
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He also asserts that,
" The problem of the telecommunications
is the offer not the demand , and we are not satisfying
all the expected needs. Algerie Telecoms should
react , and with the competition , it might probably
be the one that would satisfy all these needs. (..)
Algerie Telecoms needs a strategic partner with
the opening of its capital up to 30%; It also needs
a technological and managerial contribution. Knowing
that the issue of partnership is considerably essential,
many companies such as Telephonica and France Telecoms
have showed a great interest in the Algerian market(
)
. Right after the creation of Algerie Telecoms ,
the ministry had no other issue than signing contracts
with equipment providers. Nevertheless, this would
be different with the GSM license , internet and
image conveyance " .This is quite optimistic
, since Algerie-Telecoms
is far ahead of the challenging operators.We can
also mention, in this context, the success of the
telecom company, Sitel
. The best conditions were met for its partnership
with the Swedish Ericsson, thanks to which the company
has registered a promising prosperity. "Our
growth is centered on development and permanent
improvement" explains M. Baghli, CEO
of Sitel. Indeed the company has started to
diversify its products, with, among others, the
introduction of the technology of multiservices
networks of great capacity, supply of Ericsson Internet
access material and optical fibre. Proud of the
success of this partnership with Ericsson, the CEO
of Sitel declares to the attention of investors:
"get involved correctly and you will succeed
in Algeria. Do not only think of business, think
of creating jobs, it is what Ericsson did and they
succeeded."
Moreover, as Professor Zine Eddine Youbi, Minister
of Post and Telecoms, underlines, the development
of the sector is strategic for the Algerian economy
to modernize and open itself. "It is a precondition
to the development of other sectors. Through our
networks, we ensure interbank and even intrabank
relations. Besides, we have just signed a contract
with the Ministry of Finances." A sector
which will offer great opportunities not only for
local calls, expected in 2003 and international
calls before 2007, but also within the framework
of a third GSM licence as soon as 2004. And this
opportunity does not mislead certain national companies,
such as Sonelgaz, which benefits from its existing
infrastructures, and anticipates. Thus the remarks
of M. Bensaad, assistant general manager of Sonelgaz,
highlight the ambition of the company : "In
the telecoms field, we have already engaged an operation
which will go on. That is the setting up of optical
fibre on our high-voltage networks. This network
of optical fibre will first benefit to Sonelgaz,
but it can nevertheless be opened to telecoms operators."Taking
into consideration the specificity of the public
service, the evolution of the postal services could
probably not have the same growth. However, the
postal service remains a very important vector for
the financial exchanges and the mail. With 5 million
valid accounts, its functioning mode doesn't comply
with the international standards mainly in deadlines
and service diversity. In spite of all this, the
postal service remains as a very interesting opportunity
. " The sector of services , mainly the
post, requires very important investments; and for
that we feel ready to consider any type of partnership
able to develop our sector (
). Reforms have
been conducted with the support of the World Bank
granting a credit of 9 million US$ . A survey has
been planned within the framework of this credit
in order to assess the possibilities of revalorization
of the human resources and optimize the Posts organization
taking into account the information technologies..
We also take advantage of the European Union funds
MEDA project used to develop the postal sector"
says Mrs
Ghania Houadria, General Manager of Algérie
Poste. Being the first bank in the country,
Algerie
Poste shall launch its own savings service ,
modernize its management by introducing new technologies
( such as checking the accounts via internet, a
service already operational) and enhance the express
mail at the local and international levels. These
are projects supported by the World Bank and the
European Union through supporting technical programs.
Algerie
Poste is expected to have a more significant
growth in the coming years.
The Algerian market is considered as one of the
most important ones in the region. It is important
not only for the Maghreb and Africa but also for
the neighboring Mediterranean countries and Europe
in general. Indeed, having a young population ,
Algeria is considered as a promising and attractive
market mainly for the new information technologies
and communication. On the other hand, major projects
of an international caliber are envisioned within
the framework of the strategic economic programs
implementation such as the future gas pipeline which
will directly connect Algiers to Spain and Italy
. It is obvious that these gas pipelines will be
equipped with highly reliable telecommunications
systems which capacities could probably be adapted
to satisfy the needs of many African countries.
In addition, Algeria will launch its first satellite,
ALSAT 1, among the four programmed. These are meant
for the weather forecast, remote tracking, short
massaging and training. Algeria is firmly decided
to promptly enable Algerians to communicate wherever
they are and whatever their situation .
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