Market Trends of Algeria Telecom Industry
Rising Demand for 5G
- 5G growth has been sluggish in the initial days of the launch in the country, however has significantly risen in the recent times. In November 2018, Mobilis, a subsidiary of Algérie Telecom, conducted a successful super broadband test in Oran. Achieving a data transmission rate of 1.18 gigabits per second (Gbps), Mobilis, with technical assistance from its partner Huawei, showcased a promising glimpse into the realm of 5G at the Smart Algeria Forum.
- Further, Ooredoo, the Qatari telecom giant, is ramping up its network infrastructure upgrades, particularly in Algeria and Tunisia, as it gears up for the imminent 5G technology rollout. In a strategic move in March 2023, Ooredoo solidified its commitment by partnering with Nokia.
- Further advancing its technological advancements, Ooredoo has also inked a significant deal with Huawei, specifically targeting markets like Tunisia and Algeria. By bolstering its network core to 5.5G, Ooredoo is enhancing its current services and laying a robust foundation for the future launch of 5G services. Additionally, Nokia's involvement extends to modernizing Ooredoo's IP network and expanding its Fiber-to-the-Home (FTTH) network in Tunisia. These strategic moves are poised to revolutionize Ooredoo's networks, promising users improved data speeds and enhanced capacity.
- Nokia rolled out its advanced, energy-efficient AirScale portfolio. This includes base stations that cater to a spectrum of radio technologies, spanning from 2G, 3G, and 4G to the latest 5G standard. Complementing these are massive MIMO Adaptive Antennas, designed for both urban and wide-area coverage, alongside dual-band Remote Radio Heads. Additionally, Nokia will introduce its AirScale indoor Radio small cell solution, ensuring seamless indoor coverage. These advancements are poised to elevate the mobile user experience, offering not just high bandwidth and ultra-fast speeds but also significantly reducing latency.
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Data and Messaging is set to Hold Significant Share
- By the third quarter of 2022, Algeria boasted nearly 49 million active mobile network subscriptions, suggesting near-universal mobile connectivity. Algérie Télécom Mobile (ATM) emerged as the dominant player, commanding approximately 21 million subscribers, with Optimum Télécom Algérie (OTA) and Wataniya Télécom Algérie (WTA) trailing closely behind.
- According to GSMA Intelligence, Algeria boasted 50.65 million cellular mobile connections in January 2024, representing 110.2% of its population. Notably, the country saw a growth of 1.6 million connections, marking a 3.3% increase from the beginning of 2023.
- As stated by ITU, by 2023, Algeria boasted a user base of 32.47 million, with an internet penetration rate touching 72.9% in early 2024. Further, data from Ookla highlights a significant surge in Algeria's median mobile internet speed, up by 7.96 Mbps, marking a 59.4% increase over the previous year. In parallel, Ookla's findings underscore a 12.0% rise in fixed internet speeds, climbing by 1.32 Mbps.
- Meta's advertising resources further reveal that Facebook's user base in Algeria reached 24.85 million in early 2024. Additionally, Meta's data showcases a notable increase in Facebook's potential ad reach, growing by 4.1 million from January 2023 to January 2024. In early 2024, Google's advertising data revealed that YouTube boasted 22.80 million users in Algeria. According to Google's ad planning tools, YouTube's potential ad reach in Algeria grew by 100,000 users, marking a 0.4% increase from the beginning of 2023 to early 2024.
- Therefore, with the significant growth in the mobilr users with the growing awareness, young population and the digitalization across the country is set to bolster the market growth rate during the forecast period.
