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 Monday, January 14, 2008

Algeria's fixed and cellular revenues are projected to exceed US$4.7 billion in 2011, growing from around US$ 4.1 billion in 2007 reports the Arab Advisors Group. The expected privatization of Algérie Telecom in 2008 should also enhance growth in the massive Algerian cellular and fixed market.

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Algeria's government is planning to partially privatize Algérie Télécom. The sale was expected to be take place by end of 2006, with the government selling 35% of the operator in an Initial Public Offering (IPO). However the procedures have not been finalized and the tender was yet not launched, but expected to take place in 2008. The ARPT had announced that the process has arrived at a point of maturity and the file is currently with the hands of the Algerian government. Algérie Telecom remained the monopoly fixed operator till 2005. The monopoly status ended in May 2005, when the ARPT awarded the Consortium Algérien des Telecommunication (CAT) a 15-year renewable license to provide fixed, international and rural services.

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Algeria's mainlines market grew at a Compound Annual Growth Rate (CAGR) of 9.9% during the period from 2002 to 2006. The fixed line network has a relatively low penetration rate, which reached 9.1% by end of September 2007. The total number of fixed line subscribers reached 3.109 million subscribers in the third quarter of 2007.

Source: Cellular News, based on report by Arab Advisors Group.