Algeria’s government expects to name the winners of two fixed-line telephony licenses in March 2005 after an initial tender was postponed in 2004 due to a lack of bids, a government official said. The winners of the new tenders were to be announced on January 15.

Algerian government officials met with potential bidders over the weekend according to a government source. The source said several interested parties, including foreign telecoms operators, are bidding.

Last year's tender failed because of the requirement for the successful bidders to invest US$ 1 billion combined with a low expected return on investment. This time around, it is unclear if the government has made the conditions more attractive. Telecoms Minister Amar Tou said last month he was optimistic about the new tenders.

State-owned fixed-line monopoly Algerie Telecom currently has approximately three million subscribers. The country has over four million subscribers in its competitive mobile phone sector.

Intelecon Research & Consultancy Ltd. 17/01/2005
Source: Reuters