January 2001

Algeria Master Report

This is the final Alternative Networks report on Algeria as the ESIS project ended in January 2001. This Master Report covers the whole period of the ESIS project surveying the Mediterranean Area, March 1999 - January 2001 inclusive. 

1. Regulation and actors

1.1 Regulation of telecommunications and alternative networks:

The ministry of posts and telecommunications had been for more than two decades the sole public operator and provider of telecommunication services and infrastructures, but since the end of Q2 2000 the government has started to implement new strategic efforts to put this sector on a dynamic progress. Hereafter is a retrospect of the principal landmarks of the history of telecommunications and alternative networks evolution, before and during the ESIS II period:

• Since 1975, the telecommunications sector has been under the monopoly of the Ministry of Posts and Telecommunications. The order 75-89 of December 3, 1975 defines the code relating to it.

• No installation of telecommunication infrastructures or equipment can be established without the Ministry of Posts and Telecommunications’ agreement; the establishment of links outside of the state network is subordinated to the previous authorisation (Art. 39 and 40 of the P&T code, legislative part).

• The decree 83-71 of January 8, 1983 sets the attributions of the Ministry of Posts and Telecommunications.

• The decree 83-73 of January 8, 1983 establishes the number and the functions of the technical counsellors assigned to the Ministry of Posts & Telecommunications.

• The Ministry of Posts and Telecommunications defines the development policy of the sector of telecommunications and proposes all relative codification and regulation. As regards planning, it is in charge of studying necessary measures to develop new orientations on national policies in order to implement new techniques in this field/sector (Art. 5, 8 and 9 of the decree 83-71 of January 8, 1983 which defines attributions of the P&T Ministry).

• The Ministry follows up and controls the activity of the private companies operating in the sector. It proposes technical regulation of security, participates in the establishment of security standards and promotes the standardisation of products of the sector (Art. 13, 14 and 17 of the decree 83-71 of January 8, 1983 fixing assignments of the P&T Ministry).

• The decree 85-06 of March 16, 1985 deals with the creation of CERIST, for Research Centre on Scientific and Technical Information, the first provider of Internet services few years later.

• In 1986 a new restructuring policy was implemented concerning the Algerian Radio and Television public company (created in 1962) in order to modernise the technical tools and equipment and offer better services.

• The TDA (Tele-Diffusion of Algeria), created by the decree 91-98 of April, 20^th 1991, exclusively ensures the diffusion and the transmission of sound and television broadcasting programs inside the Algerian territory and towards foreign countries. It also works out technical plans of frequencies distribution in the allocated band frequencies according to conventions, specialised international conferences and the Information High Council’s decisions.

• The ordinance 95-22 of August, the 26^th 1995 stipulates the liberalisation of public companies.

It was reinforced by the decree n# 96-106 of March, 11^th 1996 with the creation of an institution that will have in charge the monitoring of this privatisation process.

1998 is considered to be a turning point, as it marks the beginning of a new economic and technological era. The general awareness concerning ICTs was just emerging in a context of national economic reforms and early stages of a technology explosion (Internet) with a perspective of liberalisation and privatisation in many strategic sectors, e.g. telecommunications.

• The decree 98-82 of February 25, 1998 dealing with the creation of the Centre of Studies and Research on telecommunication or ‘CERT ' within the administration of Posts and Telecommunications.

• The ministerial decree 98-257 of August 25, 1998 defining conditions and appropriate modes for setting and operating Internet services that only people of Algerian nationality are allowed to ensure.

• A permanent Commission is in charge of Internet affairs. A representative of the Minister of telecommunications heads the Commission (Art. 15 and 16 of the ministerial decree n# 98-257 of August 25, 1998 defining conditions and appropriate modes for using and operating Internet services).

• In July 2000 a bill dealing with the reorganisation of Sonelgaz (the public company of electricity) towards liberalisation was introduced to the Council of the government. At the end of the ESIS II period, it has not been adopted yet.

• The law n# 2000-03 of August 5^th, 2000 deals with a reformation in Post and Telecommunication sectors with several changes affecting the general policy of liberalisation. It opens the telecommunications network to new public and private operators, thus breaking the Ministry’s monopoly. Its objectives are:

• to set up an adequate legal environment for an open market,

• to guarantee a universal service for all, including remote rural areas,

• to develop public and private investment,

• to improve the service quality within reasonable costs through well established competition rules,

• to reinforce the State role regarding the control and monitoring of commercial practices

• to define the conditions of setting up new operators.

In order to reach these goals, the law sets up certain measures:

• the separation of postal and telecommunication activities,

• the setting up of Algérie Télécom,

• the liberalisation of the telecommunication sector,

• the creation of a Regulation Authority.

The tasks assigned to this authority are:

• to look after the existence of an effective and faithful competition in the postal and telecom markets and take the necessary measures to promote competition in these markets,

• to supply, within the property right, the sharing of telecom infrastructures,

• to plan, manage, assign and monitor the use of frequencies in the radio-electic frequency bands with a full respect for the principals of non-discrimination between the operators,

• to set up a national numbering plan and grant numbers to the operators,

• to accept interconnection reference offers,

• to protect the interest of users,

• to watch the fulfillment and the respect of the general conditions of quality, services and information as stipulated in the license of each operator.

There are some public companies and ministries endowed with alternative networks. It is the case for the Ministry of Health and the Ministry of Justice, for instance. These networks are likely to be further developed in order to be more relevant with the global changes.

1.2 Regulation and status of public utilities and public organisations regarding a potential entry in the alternative networks industry:

There is no industry of alternative networks yet, but there are ongoing trends, efforts and changes in the governmental policy. National authorities are gradually implementing a liberalisation of the economy. This new policy can be considered as a giant step towards the construction of an industry in the years to come. The great achievement which is worth mentioning is connected to the recent telecommunication law. One of the primary goals of this law is the liberalisation of the telecommunication industry through the following measures:

• One or two new GSM mobile telephony operators in 2001

• One or two new VSAT, GMPCS operators in 2001

• Liberalisation of value-added services in 2001

• One or two new telecom operators in less favoured rural areas in 2002

• One or two new operators for long distance national calls in 2003

• One or two new operators for international calls in 2003

• A total opening of the telecom market by 2005

A call for tender was issued in order to select the new GSM mobile telephony licenses holders.

1.3 The actors and their strategies

In its overall programme of liberalisation, launched in 1998, the government has issued several laws to fit this readjustment policy. In this context many public companies has begun to carry out considerable changes and implement their planned strategies to respond to this general/national necessity.

Sectors most concerned by this process are telecommunications, banks and insurance and energy.

In order to promote the development of a dynamic and competitive telecommunication sector, the core of the reforms that have been brought about the law n# 2000-03 of August 5^th, 2000, deal with the development of a reliable and modern national network. This can be effectively achieved with the emergence of a new market structure that will allow competition and private investment.

In order to set up the necessary reforms on the telecommunication sector, the government has shown frantic efforts to consolidate the universal services of the postal sector and open the telecommunication activities for private investment. Hence, the financial support/aid of the World Bank to succeed in the restructuring of these services and open them to more investment.

As far as other networks are concerned, the public company Sonelgaz (gas and electricity and Algeria’s only utility company) had witnessed in the course of the past years important efforts for restructuring its infrastructures and services. Today, the objectives are far more ambitious as this company places higher priority in developing an overall strategy to be relevant with a free market requirements. These reorganisations intend to break the monopoly of the company over the production and distribution of electricity and prepare it for competition.

The national airways company Air Algerie is intending to partially privatise its services. A call for tender has been recently issued for all interested consulting companies to advise Air Algérie on the strategy to be undertaken.

The Algerian railways company (SNTF) started the installation of its own alternative network infrastructure to meet the needs of the private telephony and data transfer of the company.

A new highway has been opened in the southern part of the country, the National Road 3 or RN3. It is 1,317 km long.

The main companies (still public for the time being) that have a potential for using their alternative networks in IS applications are the following:

2.1 Types of companies offering networks (gas, railway, etc.):

• SNTF stands for National Railway Transport Company, which its 4200 kilometers’ railway network covers mainly the northern regions. It has also started the installation of its own infastructure to meet the needs of its own private telephony and data transfer.

• Sonatrach is a state-owned hydrocarbons company. It has a huge pipeline network (a trans-maghreb and a trans-med one).

• Sonelgaz is a public company of electricity and gas distribution. It manages the whole national electrical network.

• ENTD/TDA, the Algerian radio and Tele diffusion of Algeria are respectively specialised in telediffusion.

• Ministry of Health and Ministry of Justice. Both are endowed with alternative networks that will probably be adjusted.

• Before June 1998, Air Algérie had been for many years the sole airline company before the advent of six (6) new private ones.

• ANA is the administration of roads and highways.

• EPE is a water facility public company that monitors a national network of regional companies all over the country.

2.2 Types of operators using the networks

All stated networks belong to public authorities, either regional or national. Subsequently, the operators remain public ones for the time being.

2.3 Types of services offered by the operators on the networks

Public operators for each network offer services according to their sector, specific internal needs and area of activity, e.g. data transmission. But all these alternative network owners will have developed their infrastructure by the upcoming years as the increasing number of ISPs and the forthcoming new mobile telephony operators will need modern and reliable alternative infrastructures. In this objective, there must be an adequate legal framework and an effective development strategy being the necessary elements for an open and competitive market.

2.3.1 Main Alternative Actors in Algeria