Showdown between ARPT and relevant Minister cast doubt over 3G licencing in Algeria

A simmering row has erupted between the head of the Algerian Authority for the Regulation of Posts and Telecommunications (ARPT) and the Minister of the Posts, Information Technologies and Communication, Moussa Benhamidi, over the terms of the books of specifications concerning the 3G licencing bidding process which was initially due to kick off on August 11th this year.

Well-informed sources told Echorouk that Mr Moussa Benhamadi was angered by the abrupt decision taken by the head of the ARPT not to set a precise date for the opening of the various tenders for the 3G licencing submitted by the interested parties.

However, the same sources indicated that the Minister was not legally entitled to dictate to the ARPT as the latter is an independent body from the relevant ministerial department.

The stand-off adopted by the ARPT is due to several undue factors notably resulting from the outstanding Djezzy file which is still the subject of thorny negotiations between the Algerian government and Russian telecom group Vimpelcom.

Algeria’s 3G licence contest was due to take place earlier this year but was postponed due to issues over Djezzy’s ownership. Russia’s Vimpelcom acquired control of the telco when it took over Orascom Telecom Holding as part of a wider deal in 2011. Algeria has been keen to take control of Djezzy for a number of years, but has so far failed to reach agreement with Vimpelcom.

It is not immediately clear how the situation will affect the 3G licensing contest.

As a bidder in this much-lucrative contest, Qatar’s Ooredoo on Monday announced that it will take part in the 3G licensing process that will take place in Algeria this summer.

Last week, the Algerian regulator, “the Autorité de Régulation de la Poste et des Télécommunications” (ARPT) officially opened the country’s 3G licensing competition. It revealed that three 3G licences will be up for grabs by “established operators running mobile telecoms networks in Algeria.”

Interested parties were initially due to submit their applications to the ARPT from 11 August to 15 August.

Ooredoo, which runs one of three mobile networks in Algeria via its controlling stake in Wataniya Telecom, released a statement welcoming the regulator’s decision to begin the process for granting 3G licences.

“As a long-term partner in the growth and development of the telecommunications sector in Algeria, Ooredoo will participate fully in this process,” said Ooredoo chairman Abdullah Bin Mohammed Bin Saud Al-Thani.

Ooredoo’s Nedjma is Algeria’s smallest mobile network operator with a customer base of 9.06 million and a market share of 24.14% at the end of 2012, according to the regulator. State-owned Mobilis is slightly bigger with 10.62 million customers and a 28.31% share, while Vimpelcom-owned Djezzy dominates with 17.85 million subscribers and a 47.55% market share.