The mobile telephony segment in Algeria is reaching maturity. Mobile subscriber growth rates are projected to slow down even as mobile penetration rate was expected to reach 100 per cent by the first quarter of 2012. 3G services are likely to be the next major trend in the Algerian market and are set to boost broadband penetration. However, an inefficient regulatory environment threatens the development of the telecommunications industry.
New analysis from Frost & Sullivan finds that the market earned revenues of USD 4.96 billion in 2011 and is estimated to reach USD 7.36 billion in 2018. The highest growth potential is anticipated to lie in the broadband segment.
"Algeria has a 2.5 per cent broadband penetration rate as of 2011," noted Frost & Sullivan Research Analyst Jonas Zelba. "However, the demand for high speed data services is evident and is expected to increase, thus driving its growth."
Algeria has among the lowest broadband penetration rates in the region. The fixed-line broadband services are monopolised by Algerie Telecom as all the ISPs have to use its network.
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