Executive Summary

Northern Africa is home to some of the most developed telecom markets on the continent and features the world’s fastest growing fixed-line market in Sudan. All countries in this group except for landlocked Chad have well developed fixed-line infrastructures and direct access to international submarine fibre optic cables, and all but Chad and Libya are among the relatively few African countries offering commercial Asymmetrical Digital Subscriber Line (ADSL) services. Morocco has the highest overall teledensity in the region thanks to its booming mobile market. Maroc Telecom’s highly successful Initial Public Offering (IPO) in November 2004 was 50 times over-subscribed. Privatisation of the PTOs is on the near-term agenda in Chad and Egypt.

Algeria’s liberalisation efforts have resulted in the PTO being converted into a joint stock company in preparation for privatisation, the establishment of an independent regulator and the licensing of three GSM networks. Despite being one of the wealthiest nations on the continent, its telecom network still requires extension and modernisation to keep up with demand as the country is slowly emerging from economic and political problems that made it difficult to finance these needed improvements. While the fixed-line network is expanding slowly, the mobile sector has enjoyed extraordinary growth since liberalisation in 2002. 2003 also saw the introduction of ADSL broadband services and the temporary legalisation of Voice over Internet Protocol (VoIP) telephony, a move from which the government retreated in 2004. Full liberalisation of the telecommunications market is now planned for 2005.

Against a backdrop of poverty and years of civil war, drought and famine, Chad lags behind neighbouring countries on almost all communications-related indicators and despite support from the World Bank, private sector investment is urgently needed. Despite impressive growth, one of the country’s two mobile networks ceased operations in mid-2004 due to an unresolved dispute with the government, but a third licence was awarded in November of the same year. Other expected developments moving into 2005 include the partial privatisation of the national operator, Sotel Tchad.

Although Egypt has suffered an economic slowdown since 2000, the telecom sector has continued to perform consistently well. Data traffic is growing strongly and demand for both fixed-line and mobile communications is huge. The privatisation of Telecom Egypt is at an advanced stage of planning. Egypt has become the largest Internet market and the third largest mobile market in Africa (after South Africa and Morocco). Extraordinary growth in both the mobile and Internet sectors has been achieved on the basis of privatisation, infrastructure-based competition and the successful implementation of a ‘free Internet’ strategy. A broadband initiative launched by the government in 2003 aims to increase the number of broadband connections ten-fold within three years and will bring 24Mb/s access to residential households in 2005.

Libya is emerging from almost two decades of economic isolation, which contributed to the stagnation of its oil industry and invariably its telecoms sector. It is now taking steps to introduce more relaxed market policies with a view to attracting foreign participation in key sectors including telecommunications. Despite having an old style monopoly player for the provision of posts and telecommunications services, its fixed-line network is superior to those in many other African countries. In sharp contrast, the mobile sub-sector remains underdeveloped with a penetration of around 3% in 2004, but growth has been accelerating in recent years. Third generation (3G) mobile technology is being installed, and the launch of a second mobile network in September 2004 may bring further stimulus to the market moving into 2005.

Morocco’s telecom network is among the largest in Africa with top class facilities and services. Driven by exceptional growth of the Internet sector since 2003, demand for fixed lines has started to rise again after falling steadily since 2000 when competition was introduced to the mobile market, driving mobile penetration towards the 30% mark at the end of 2004. Incumbent operator Maroc Telecom was partially privatised in 2001 and highly successfully floated on the Paris and Casablanca stock exchanges in November 2004, being 50 times oversubscribed. There are plans to auction the country’s second fixed-line concession in 2005, possibly bundled with a third mobile licence. Full competition exists in the provision of VSATs, data and Internet services, cybercafes, and telecentres.

With a Compound Annual Growth Rate (CAGR) of more than 40% over the past five years, Sudan by far represents the fastest consistently growing fixed telephony market not only in Africa but worldwide, spurred by the discovery of oil in 1997. Internet usage grew by 250% in 2003 and mobile telephony by a staggering 210% in the first nine months of 2004 alone. Annual telecommunications investment has skyrocketed from only US$500,000 in 1994 to over US$100 million. Key developments are the awards of a second mobile licence in October 2003 and a second fixed-line licence in November 2004. Enormous further potential exists, as market penetration in all segments is still low. Under a recent peace agreement, the oil-rich south of the country which has been beyond the central government’s control and deprived of development for decades, is now set to establish its own independent telecommunications regime, creating huge new opportunities for service providers and equipment suppliers.

Tunisia has one of the most developed telecommunications infrastructures in Northern Africa. The mobile sector has experienced exceptional growth, especially since a second operator was licensed in 2002. Third generation (3G) trial systems have been installed and as one of the first countries in Africa, Tunisia saw its first 3G call made in September 2004. Internet access is available country-wide with a fibre optic backbone and international access via submarine cables, terrestrial and satellite links. In 2005 the focus will be on expanding broadband services throughout the country.

1. EXECUTIVE SUMMARY
1.1 Key highlights
2. ALGERIA
2.1 Key statistics
2.2 Telecommunications market
2.2.1 Overview of Algeria’s telecom market
2.3 Regulatory environment
2.3.1 Historic background
2.3.2 Law of 2000
2.3.3 Regulatory authority
2.3.4 Telecom sector liberalisation in Algeria
2.3.5 Privatisation of Algerie Telecom
2.3.6 Interconnection
2.4 Fixed network operators in Algeria
2.4.1 Algerie Telecom
2.5 Telecommunications infrastructure
2.5.1 National telecom network
2.5.2 International infrastructure
2.6 Internet market
2.6.1 Overview of the Internet in Algeria
2.6.2 Cyber-city project
2.6.3 Algeria’s ISP market
2.6.4 VoIP
2.6.5 E-services
2.7 Broadband market
2.7.1 ADSL
2.8 Mobile communications
2.8.1 Overview of Algeria’s mobile market
2.8.2 Major mobile operators
2.8.3 Third Generation (3G) mobile systems
2.8.4 Satellite mobile
2.9 Broadcasting market
2.9.1 Overview
2.9.2 Satellite TV
3. CHAD
3.1 Key statistics
3.2 Telecommunications market
3.2.1 Overview of Chad’s telecom market
3.3 Regulatory environment
3.3.1 Telecommunications Act 1998
3.3.2 Regulatory authority
3.4 Fixed network operators in Chad
3.4.1 Sotel Tchad
3.5 Telecommunications infrastructure
3.5.1 National telecom network
3.5.2 International infrastructure
3.6 Internet market
3.6.1 Overview of the Internet in Chad
3.6.2 VoIP telephony
3.7 Mobile communications
3.7.1 Overview of Chad’s mobile market
3.7.2 Major mobile operators
3.7.3 Third mobile licence
3.7.4 Satellite mobile
3.8 Broadcasting market
4. EGYPT
4.1 Key statistics
4.2 Telecommunications market
4.2.1 Overview of Egypt’s telecom market
4.3 Regulatory environment
4.3.1 Background
4.3.2 Creation of a new regulatory framework
4.3.3 Legislative reform
4.3.4 Regulatory authority
4.3.5 Telecommunications Master Plan
4.3.6 Telecom sector liberalisation in Egypt
4.3.7 Privatisation of Telecom Egypt
4.3.8 Interconnection
4.4 Fixed network operators in Egypt
4.4.1 Telecom Egypt
4.4.2 Orascom Telecom
4.5 Telecommunications infrastructure
4.5.1 National telecom network
4.5.2 International infrastructure
4.6 Fixed voice market
4.6.1 National and international call traffic
4.6.2 VoIP telephony
4.7 Data market
4.7.1 Data service operators
4.7.2 VSAT networks
4.7.3 Data centres
4.8 Internet market
4.8.1 Overview of the Internet in Egypt
4.8.2 Internet gateways
4.8.3 Cairo Regional Internet Exchange (CRIX)
4.8.4 Internet access locations
4.8.5 Egypt’s ISP Market
4.9 Broadband in Egypt
4.9.1 Broadband initiative
4.9.2 xDSL
4.9.3 Wireless broadband
4.10 Convergence
4.10.1 E-commerce
4.10.2 Smart Village
4.10.3 Technology incubators
4.10.4 Information Highway Project
4.10.5 E-government
4.11 Mobile communications
4.11.1 Overview of Egypt’s mobile market
4.11.2 Regulatory issues
4.11.3 Major mobile operators
4.11.4 Mobile voice services
4.11.5 Mobile data services
4.12 Egypt’s broadcasting market
4.12.1 Overview
4.12.2 Satellite pay TV
5. LIBYA
5.1 Key statistics
5.2 Country overview
5.3 Telecommunications market
5.3.1 Overview of Libya’s telecom market
5.4 Telecommunications infrastructure
5.4.1 National telecom network
5.4.2 International infrastructure
5.5 Internet market
5.5.1 Overview of the Internet in Libya
5.5.2 IP telephony
5.6 Mobile communications
5.6.1 Overview of Libya’s mobile market
5.6.2 Second mobile network operator
5.6.3 Satellite mobile
5.7 Broadcasting market
5.7.1 Television broadcasting in Libya
5.7.2 Pay TV
6. MOROCCO
6.1 Key statistics
6.2 Telecommunications market
6.2.1 Overview of Morocco’s telecom market
6.3 Regulatory environment
6.3.1 Telecommunications Law 1997
6.3.2 Telecom law amendments 2002
6.3.3 Regulatory authority
6.3.4 Telecom sector liberalisation in Morocco
6.3.5 Privatisation of Maroc Telecom
6.3.6 Universal service
6.4 Fixed network operators in Morocco
6.4.1 Maroc Telecom
6.5 Telecommunications infrastructure
6.5.1 National telecom network
6.5.2 International infrastructure
6.6 Internet market
6.6.1 Overview of the Internet in Morocco
6.6.2 MARWAN network
6.6.3 Internet connectivity
6.6.4 Morocco’s ISP market
6.6.5 VoIP telephony
6.7 Broadband in Morocco
6.7.1 ADSL
6.7.2 Wireless broadband
6.8 Convergence
6.8.1 E-commerce
6.8.2 Tele-education
6.9 Mobile communications
6.9.1 Overview of Morocco’s mobile market
6.9.2 Major mobile operators
6.9.3 Mobile voice services
6.10 Broadcasting
6.10.1 Television and radio broadcasting in Morocco
6.10.2 Free-to-air TV
6.10.3 Satellite TV
7. SUDAN
7.1 Key statistics
7.2 Telecommunications market
7.2.1 Overview of Sudan’s telecom market
7.3 Regulatory environment
7.3.1 Background
7.3.2 Regulatory authority
7.3.3 Telecom sector liberalisation in Sudan
7.3.4 Privatisation of Sudatel
7.4 Fixed network operators in Sudan
7.4.1 Sudan Telecommunications Co Ltd
7.4.2 Kanartel
7.5 Telecommunications infrastructure
7.5.1 National telecom network
7.5.2 International infrastructure
7.5.3 Southern Sudan
7.6 Internet market
7.6.1 Overview of the Internet in Sudan
7.6.2 Sudan Internet Society (SiS)
7.6.3 Sudan’s ISP market
7.6.4 Broadband via satellite
7.7 Mobile communications
7.7.1 Overview of Sudan’s mobile market
7.7.2 Major mobile operators
7.7.3 Satellite mobile
7.8 Broadcasting
7.8.1 Radio and TV broadcasting in Sudan
8. TUNISIA
8.1 Key statistics
8.2 Telecommunications market
8.2.1 Overview of Tunisia’s telecom market
8.3 Regulatory environment
8.3.1 Background
8.3.2 Telecommunications Act 2001
8.3.3 Regulatory authorities
8.3.4 Telecom sector liberalisation in Tunisia
8.4 Telecommunications infrastructure
8.4.1 National telecom network
8.4.2 International infrastructure
8.5 Data market
8.5.1 Market overview
8.6 Internet market
8.6.1 Overview of the Internet in Tunisia
8.6.2 Agence Tunisienne d’Internet (ATI)
8.6.3 Internet access locations
8.6.4 Tunisia’s ISP market
8.6.5 Broadband in Tunisia
8.7 Convergence
8.7.1 E-commerce
8.8 Mobile communications
8.8.1 Overview of Tunisia’s mobile market
8.8.2 Major mobile operators
8.8.3 3G
8.8.4 Satellite mobile
8.9 Broadcasting
8.9.1 TV broadcasting
8.9.2 Satellite TV
9. GLOSSARY OF ABBREVIATIONS


Exhibit 1 – Licences issued
Exhibit 2 – National and regional fibre networks
Exhibit 3 – EgyptNet PDN services
Exhibit 4 – Vodafone Egypt lists on Cairo and Alexandria Stock Exchange
Exhibit 5 – Tunisia’s new strategy to promote the Information Society 2005




Table 1 – Country statistics Algeria – 2003
Table 2 – Telephone network statistics – 2003
Table 3 – Internet provider statistics – March 2004
Table 4 – Internet user statistics – 2003
Table 5 – Mobile statistics – September 2004
Table 6 – National telecommunications authorities
Table 7 – Fixed lines in service – 1995 - 2003
Table 8 – Internet users – 1996 - 2003
Table 9 – Internet host computers – 1996 - 2003
Table 10 – Mobile subscribers by operator – September 2004
Table 11 – Mobile subscribers – 1995 - 2004
Table 12 – Country statistics Chad – 2003
Table 13 – Telephone network statistics – 2003
Table 14 – Internet provider statistics – 2003
Table 15 – Internet user statistics – 2003
Table 16 – Mobile statistics – March 2004
Table 17 – National telecommunications authorities
Table 18 – Fixed lines in service – 1995 - 2003
Table 19 – Internet users – 1998 - 2003
Table 20 – Internet host computers – 1998 - 2003
Table 21 – Mobile subscribers – 2000 - 2004
Table 22 – Tchad Mobile subscribers – 2001 - 2004
Table 23 – Country statistics Egypt – 2003
Table 24 – Telephone network statistics – November 2004
Table 25 – Internet provider statistics – July 2004
Table 26 – Internet user statistics – November 2004
Table 27 – Mobile statistics – November 2004
Table 28 – Broadcasting statistics – 2002
Table 29 – National telecommunications authorities
Table 30 – Fixed lines in service – 1995 - 2004
Table 31 – Public payphones – 2002 - 2004
Table 32 – International traffic volume – 1999 - 2003
Table 33 – Internet users – 1995 - 2004
Table 34 – Internet host computers – 1995 - 2003
Table 35 – Mobile subscribers by operator – November 2004
Table 36 – Mobile subscribers – 1996 - 2004
Table 37 – MobiNil subscribers – 1998 - 2004
Table 38 – Vodafone Egypt subscribers – 1998 - 2004
Table 39 – Country statistics Libya – 2003
Table 40 – Telephone network statistics – 2003
Table 41 – Internet provider statistics – 2003
Table 42 – Internet user statistics – 2003
Table 43 – Mobile statistics – September 2004
Table 44 – National telecommunications authorities
Table 45 – Fixed lines in service – 1995 - 2003
Table 46 – Internet users – 1999 - 2003
Table 47 – Internet host computers – 1998 - 2003
Table 48 – Mobile subscribers – 1998 - 2004
Table 49 – Country statistics Morocco – 2003
Table 50 – Telephone network statistics – 2003
Table 51 – Internet provider statistics – 2003
Table 52 – Internet user statistics – November 2004
Table 53 – Mobile statistics – September 2004
Table 54 – National telecommunications authorities
Table 55 – Fixed lines in service – 1994 - 2003
Table 56 – Internet users – 1997 - 2004
Table 57 – Internet host computers – 1996 - 2003
Table 58 – Mobile subscribers by operator – September 2004
Table 59 – Mobile subscribers – 1994 - 2004
Table 60 – Country statistics Sudan – 2003
Table 61 – Telephone network statistics – 2003
Table 62 – Internet provider statistics – 2003
Table 63 – Internet user statistics – 2003
Table 64 – Mobile statistics – September 2004
Table 65 – National telecommunications authorities
Table 66 – Fixed lines in service – 1995 - 2003
Table 67 – Internet users – 1997 - 2003
Table 68 – Mobile subscribers – 1996 - 2004
Table 69 – Country statistics Tunisia – 2003
Table 70 – Telephone network statistics – 2003
Table 71 – Internet provider statistics – June 2004
Table 72 – Internet user statistics – June 2004
Table 73 – Mobile statistics – September 2004
Table 74 – National telecommunications authorities
Table 75 – Fixed lines in service – 1995 - 2003
Table 76 – Internet users – 1995 - 2004
Table 77 – Internet host computers – 1996 - 2003
Table 78 – Mobile subscribers by operator – September 2004
Table 79 – Mobile subscribers – 1995 - 2004
Table 80 – Tunisiana subscribers 2002 - 2004