Official: “3G Internet Service Requires New Numbers and New SIM Cards”

A large number of Algerian citizens have been expressing their deep frustration at the long duration that took the Algerian government to finally introduce the 3G internet service now finally slated for late December 2013 in Algeria, while other countries in Africa, such as Senegal, for instance are already enjoying access to the 4 G generation of internet service.

The decision to introduce the 3G internet service to Algeria was not devoid of snags and drawbacks since the Algerian Postal and Telecommunications Regulatory Authority (ARPT) had previously announced that potential 3G internet users would have to give up their old numbers and old SIM cards to get access to it.

Previously, Algerian government launched early on January 2008, a massive campaign to clean up the portfolios of operators from the unidentified SIM Cards, but failed to achieve the full objectives of the operation, due to the intransigence of the operators and their continued indulgence in presenting SIM cards without precise identities of their users.

Exchange of digital data on the mobile phone cells requires high security degrees for more protection, which requires a thorough knowledge of digital identity to all users of high flow speed of the mobile, as Algeria does not have, until today, a specialized agency in the field of digital security and information in general, and the specialized teams of police and gendarmerie provide the follow-up e-crimes

Mrs Zohra Derdouri, the Algerian Minister of Post and Information Technology and Communication, reaffirmed on Tuesday that 3G services will not be launched in the country on 1 December 2013 as previously announced.

Echorouk  was appraised  that although the decree issuing the final 3G licenses to the three successful bidders – Mobilis, Ooredoo Algeria (Nedjma) and Djezzy – was signed on 2 December 2013, it will take time for the operators to submit their offers to telecoms regulator “L’Autorité de Régulation de la Poste et des Telecoms (ARPT) for  final approval.

The regulator then has to assign frequencies and blocks of numbers suitable for 3G services to the cellcos. As such, commercial 3G services are unlikely to be made available before ‘late December 2013’.

Further, Mrs Derdouri revealed that the Algerian government is also planning to introduce ‘fixed mode 4G Long Term Evolution (LTE) ‘services in January 2014.

The ARPT issued interim 3G licenses to all three applicants after evaluating their financial and technical proposals. Final licenses, incorporating the relevant coverage obligations, are expected to be granted after the payment of license fees, satisfaction of the conditions indicated in the tender documents and receipt of clearances and approvals from various state authorities.

The other side of the coin:

Despite the potential of 3G to contribute positively and quantitatively to economic growth, there are factors that may dampen the demand for mobile data connectivity and diminish its impact. Many such factors have been observed in other developing mobile markets. Among these, data cost could be the primary inhibitor for the adoption of 3G.

In developing markets, telecommunications expenses as a percentage of income range from 2% to 5%, with Algeria being in the top tier if one considers a minimum monthly spend of about DA800-DA1000 ($10-$12.6). Operators will need to educate consumers about the benefits of data services to help justify spending a higher share of their disposable income on telecom services.

A related dimension to service cost is the quality of service. If operators are not able to provide a sufficiently good user experience when connecting to the Internet, users could switch back to fixed broadband, thus limiting mobile broadband for light usage only. Another factor is the cost of smartphones. As these become more prevalent, there is a risk that they will be a higher burden on households to acquire.

The Algerian government – through the telecommunication regulator body, ARPT – should realize the enormous growth that the telecom sector has brought to the country, and the indispensable role it can play for future economic and social development. This is the time to lead this sector to the next stage of progress by freeing more spectrum (currently used for broadcasting of analogue terrestrial TV) to accommodate the growth in mobile data demand, and by creating a healthy competitive environment to drive price reduction, increase the uptake of mobile data service and drive further investment in this sector to improve the quality of service.

While the introduction of 3G should not be delayed any further, it should be accompanied with regulatory and economic measures to ensure maximum value to the users as well as encourage entrepreneurship to nurture the development of new business and social ventures that can play an active role in, and benefit from, this new digital economy.