Digital transformation is accelerating in Africa with the emergence of new modes of digital consumption. Groupe Télécom Algérie wants to go beyond traditional telecommunications services to support its growth over the coming years.
Groupe Télécom Algérie has unveiled a new strategy for the period 2024-2028, reports Algérie Presse Service . Over the next four years, the incumbent operator will focus on diversifying its activities, improving quality and extending network coverage in its local market.
According to Khaled Zarat (photo), president and CEO of Groupe Télécom Algérie, the company intends to launch “ digital industry service solutions, such as cloud, IPTV, VoD and Internet of Things (IoT ), and overall everything as a service (XaaS) .” To achieve this, the public company plans in particular to increase the capacities and strengthen the security of transport networks (national and international) and build data centers.
Ultimately, this diversification of activities should allow Groupe Télécom Algérie to increase its revenues. The company will thus be able to finance investments in its telecoms network in order to adequately meet the needs of consumers and strengthen its position in the national telecoms market where competition continues to intensify.
According to statistics from the Postal and Electronic Communications Regulatory Authority, Algérie Télécom, a subsidiary of the group, controlled 43.7% share of the mobile telephony market in the third quarter of 2023, compared to 30.7% for Djezzy and 25.5% for Ooredoo. Beyond its local market, the group is also targeting an opening into new markets in Africa.
Africa: “a strategic opportunity”
According to Mr. Zarat, the African market represents a strategic opportunity for Groupe Télécom Algérie, thanks to “ a young population and a growing demand for ICT ”. The company can look to sub-Saharan Africa where only 43% of the population had access to mobile services in 2022, according to the Global Association of Telephone Operators and Manufacturers (GSMA). In North Africa, the penetration rate of mobile services was 67%.
Groupe Télécom Algérie could draw inspiration from the experience of Itissalat Al Maghrib (Maroc Telecom) of Maroc Telecom. In addition to Morocco, the Moroccan historical operator is present in Mauritania, Mali, Niger, Chad, Burkina Faso, Ivory Coast, Togo, Benin, Central Africa and Gabon under the Moov Africa brand.
It is also its subsidiaries in sub-Saharan Africa which have supported the growth of Maroc Telecom in recent years while it is subject to strong competition in its domestic market which is becoming saturated. As of December 31, 2023, the group had 76 million customers (fixed and mobile), including 21.5 million in Morocco. The company also generated consolidated revenue of 36.78 billion dirhams ($3.6 billion) in 2023.
