Algeria: “3G” to be extended to all provinces starting from December 2015

The territorial coverage of the 48 wilayas or provinces of Algeria by the third-generation mobile phone services is expected to be completed by next December 2015, with the relevant coverage rate of one operator involved in at least one province.

The move has been dictated by the pressing injunctions to this effect issued of late by the ARTP telecommunications regulation authority which is overseeing the ongoing 3G extension operation in the country.

All operators active in Algeria were initially required to offer 3G coverage in four key provinces, or wilayas: Algiers, Oran and Constantine in the north and Ouargla in the south. Beyond this, service is being gradually extended to cover all 48 wilayas of Algeria and all major roadways by 2017.

The ARPT regulation authority has also allowed operators to have exclusivity in certain wilayas during their first year of operation.

Mobilis launched service in 10 mandatory wilayas in December 2013, including exclusive coverage in Batna and Laghouat, and was authorised to enter another nine wilayas in January after proving its initial service quality. Mobilis is slated to expand coverage to 16 more wilayas in 2015 and another 13 wilayas and the entirety of the East-West Highway by 2016.

Within seven years, Mobilis is required to be present in all urban centers with over 2000 inhabitants. All other areas will be covered by infrastructure financed by the universal service fund.

Ooredoo is also active in 19 wilayas today, including exclusivity in Béjaïa and Ghardaïa. The two operators’ networks overlap in 13 of their 19 wilayas; in addition to the mandatory zones, this list includes Sétif, Tipaza, Ain Defla, Blida, Djelfa, Sidi Bel Abbès, El Oued, Biskra and Tlemcen. Djezzy launched service in seven wilayas in July 2014, including the four mandatory wilayas and Béchar, El Oued and Skikda.

Solid mobile subscriber growth in recent years has meant that mobile penetration approached 115% by mid-2015. Given the intensifying price competition between the three MNOs, Algerie Telecom’s Mobilis, Orascom’s Djezzy, and Wataniya’s Ooredoo, their focus has shifted to developing ARPU and investing in mobile data services based on HSPA and LTE technologies. Following long delays, the regulator in late 2013 finally awarded the MNOs with 3G licenses.

Together with LTE services launched by Mobilis in 2014, this has considerably boosted mobile broadband services. In late 2015 the regulator was pressed by the government to make greater efforts to extend 3G to some remaining areas which are only served with 2G.

With the advent of 3G licenses, the MNOs have the chance to transform themselves into converged service providers and to take a share of the broadband market. As such, Algeria’s mobile market still has enormous potential for growth.