October 1999

Tunisia Update Memo

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

1. On-going regulatory developments

On-going regulatory developments in the telecommunications industry mainly occurred within the education sector and GSM and E-commerce services. The Government has increased its efforts in connecting secondary schools to the Internet and also equipping schools with computers. This increased activity by the government is evident when considering that they have allocated 24% of the country’s budget towards the education sector.

Other primary on-going developments include a considerable increase in the number of GSM subscribers and the organisation of a judicial framework for e-commerce.

1. 1 Telecommunication liberalisation and new fields of developments (wireless local loop, Internet,)

Tunisie Telecom GSM

The Communications Minister Ahmed Friaa announced that the Tunisian GSM mobile phone network is expected to reach 100,000 subscribers by the end of 1999, exceeding his department's forecasts. The GSM network, which initially was 30,000 lines, has now risen to 40,000 subscribers and will soon be extended to 50,000 lines before reaching a global capacity of 100,000 lines before the end of the current year. Previous plans forecasted 200,000 lines by the end of 2001, while demand has been exceeding all expectations and is due to increase even further when the GSM network will cover new inland areas by next summer.

"GSM roaming services" are available in Tunisia and are made possible with 34 countries through agreements with 49 providers in those countries. More countries and companies will be added as soon as agreements are signed with the Tunisian provider Tunisie Telecom.

Telephone Network Reaches Full Digitalisation

The Communications Minister Ahmed Friaa at the graduation ceremony of the Tunis Institute of Communications Technology Engineering announced that the entire telecommunications network in Tunisia is 100% digital. The process of digitalisation was achieved at the end of June. The minister said that the sector of telecommunications would record a growth rate of 17% at the end of 2001. He added that the number of telephone subscribers would reach 1 million by the end of the current year.

Internet

On the 5 of September 1999 the minister of communications, Mr. Ahmed Friaa initiated the campaign of sensibility of Tunisian enterprises to the advantages of the Internet system. The campaign, which will continue until the 5 of October 1999, has started with the two departure caravans, one to Tataouine (South) and the other to the Kef (North-west) where a day of sensibility will be similarly organised, with a program of conferences on the Internet system and the electronic trade as well as workshops on the same themes.

1.2 Allocation of resources (frequencies, numbering, access rights, licensing)

E-commerce

Tunisia will soon be part of 10 first countries to be endowed with a judicial framework organising E-commerce. This project of law is currently being studied by the national technical commission for E-commerce. The national technical commission is comprised of: the Minister of Justice, the Minister of Communications, the Minister of Trade, the Minister of Tourism and Handicrafts, the Minister of Finance, Secretary of State for Informatics, Secretary of State for Scientific Research and Technology, and the Governor of the Central Bank of Tunisia.

1.3 Media and telecommunication markets: privatisations, foreign investments, mergers and acquisitions, etc…

Microsoft to set up representation in Tunisia

Microsoft Company decided to set up a representation in Tunisia. The decision of the software world leader was announced on 22 June 1999 at the end of a meeting between Secretary of State for Informatics - Mr. Montassar Ouaili, and a visiting delegation of Microsoft regional directors.

Microsoft’s interest in Tunisia stems from the rapid expansion in the information technology sector in Tunisia and the wide investment opportunities and incentives offered by the government.

Tunisia hosts a number of regional representations of a number of world leaders in information technologies such IBM, Alcatel, Hotix International, Cynex Software, Lucent Technologies, BFI, etc. The meeting also made it possible to review other potential fields of intervention of this company in Tunisia and the prospects of developing its activity by taking advantage of the country's human resources and technical and infrastructure potentials.

Tunisia boasts the availability of 5000 computer experts including 200 in computer services companies. Tunisia currently graduates 500 computer engineers or business computerisation managers per year, a figure that will reach 700 engineers per year by the year 2000.

2. On-going changes on IS policies

Education

The Tunisian government plans to spend 5.3 million dinars this year for computer equipment in schools, while computer courses will be compulsory starting of the third year in secondary schools by 2000/2001 for all sections. Twenty-four percent of the country's budget was devoted to the education sector. Expenditures for the education and vocational training sectors represent 6.1 percent of the country's gross domestic product. ($-1.20 dinar)

All the country's 334 secondary schools are now connected to the Internet, and 40 percent of preparatory classes for secondary schools will be connected by the end of the 1999/2000 school year. In addition, 271 computer laboratories had been set up in the country's secondary schools and this number is expected to reach 380 by the end of 1999 in a plan to cover all the country's secondary schools.