January 2000

Algeria Update Memo

The following memo outlines new developments in the past three months and the state of on-going developments.

1. Liberalisation

In spite of the state monopoly over the telecommunication sector, the decree n°98-326 of October, 13^th 1998 more or less opened the way for privatisation through the creation of "multi-service kiosks", i.e., private business premises, managed by private operators and equipped with telephone and fax sets supplying public telephony services. The communications are taxed to users according to the tariffs applicable to the public post offices and are charged to the kiosk managers according to the subscription tariffs.

2. Tariffs Policy

Following the deregulation concerning ISP (decree n° 99-257 of August 25^th 1998) four (04) providers received on the first of november the approval of the Ministry of Posts and Telecommunications, raising the total number of providers in Algeria to eleven (11). Thus, the connection tariffs, as expected, have been reduced.

3. Media and Telecommunication markets

An audio-visual production Society will be set up before 2000 according to J.I. Algerian newspaper n° 393 of 17th August 1999.The Society will have public status and will be open to public and private investments. It will take charge of the production of audio-visual emissions and programmes inheriting from three former audio-visual enterprises: ENPA, ANAF, CAAIC.