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New Mobile Numbers
Saturday, 22 March 2008
ImageOn February 22, all nine-digit mobile phone numbers in Algeria switched to a new 10-digit system. With the expansion of mobile phones and related services, the former numbering system, which had a capacity of 90m numbers, was deemed insufficient to respond to the current demand, which has led to a saturation of the telecommunications market. The new numbering plan will provide 900m telephone numbers, in response to operator requests. Following the launch of new numbers allocated for voice-over internet protocol (VoIP) and VSAT (Very Small Aperture Terminal) operators, there is a serious need for new numbers. In addition, M2M (Machine to Machine communications) services are still in the developing stages, and the country plans to open an MVNO (Mobile Virtual Network Operator) network in the near future, both of which will further add to demand.

According to the ARPT (Post and Telecommunications Regulatory Authority), Algeria currently counts 27m mobile telephone subscribers, out of a population of 33m. Its three operators are Orascom Telecom Algérie (Djezzy), with 13m subscribers; Algérie Télécom Mobile (Mobilis), with 9m; and Wataniya Telecom Algérie (Nedjma), with 5m. The authority anticipates a penetration rate of 100% in the next few years, compared to the current 85%.

"The new numbering system is a response to the rapid growth in the number of mobile subscribers, which has risen from 54,000 in 2000 to 27m in 2007," Mohamed Belfodil, chairman of ARPT, told OBG. "As operators have the right to demand a new block of numbers when the previous block reaches a saturation of 80%, the need for the new plan is very clear," he added.

Algeria's information and communications technology (ICT) sector is highlighted under the government's economic development programme, which is estimated at $180bn and is currently sustained by a financial surplus from energy earnings. The policy's strategic choices are supported by the liberalisation of the ICT sector; the introduction of new technologies such as WiFi and WiMAX; the privatisation of Algérie Télécom and the construction of the Cyber Parc megaproject at Sidi Abdellah.

Algeria's first cyber park, with an investment of $130m drawn from the country's economic recovery plan, should be completed this year and will cover an area of 100 ha. Other cyber park projects are planned in the west of the country, in the south and at Annaba, construction on which is scheduled to begin in 2008.

These reforms have led to considerable growth in global teledensity, which reached 84.6% in 2007, up from 5.28% in 1999.

Despite recent advances in the mobile segment, the liberalisation of the telecoms sector and the arrival of a spread of new technologies in Algeria, certain challenges remain.

Fixed-line services, for example, are faced with a much slower rate of growth. With just 3m subscribers, fixed-line operators will need to place more and more emphasis on high-speed internet services if they are to attract new clients.

Broadband has seen considerable development, but risks being surpassed by new wireless and ADSL technologies. At the end of 2007, some 120,000 ADSL access points were introduced and the country now counts 40,000 WiFi spots, as well as 100,000 for WiMax.

"At present, there is a serious lack of technology services in Algeria, but the country can bridge this gap by moving directly to the next phase of technology without passing through the earlier stages. Given that the telecommunications sector generates related activities, Algeria must rely on the growth of mobile services to introduce new products to its citizens," Hassan Kabbani, director general of Orascom Telecom Algérie, told OBG.

Another major concern is reducing technology costs, which are pressing ever more heavily on Algerian households. The attribution of a 3G (third generation) mobile telephone licence could reduce the bill and authorities are currently preparing the invitation to tender, which should be presented this year.

"In terms of access to information and technology, the demand is there in Algeria, but it must be adapted to the purchasing power of Algerians. Not only must the country jump from fixed lines directly to high-speed mobile internet access, but it must also skip the 3G stage and go straight to 3.5," Joseph Ged, director general of Nedjma, told OBG.

He also added that HSDPA (High Speed Down Link Packet Access) technology, which allows mobile phone users to connect to the internet at 1.5 Mb per second, should be available in 2008, and would be a determining factor in revitalising the telecoms sector.

In contrast, plans for number portability have been shelved now that the new numbering system entails adding a different indicator for each mobile operator. A single digit for the three operators would have left only 45m available numbers, compared to the 36m allotted under the previous plan. While the option of a different indicator for each of the operators limits the possibility of number portability, the ARPT has chosen this scheme to ensure a greater quantity of resources over the long-term.
 
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