Algerie
TOWARDS THE SUSTAINABLE DEVELOPMENT OF ALGERIA

Agriculture - Urbanism -Hydraulic section -Energy - Telecommunications

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 Both FEDEX and UPS have withdrawn the request for proposals right after the launching of a bid of interests indication by the regulatory authority of the P&T. Speaking of this market, Mr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.

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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