Djezzy, the Algerian telecom unit of VimpelCom, has tendered for LTE frequencies in the north African country and will seek to capitalise on growing popularity of data services in light of declining revenues from voice services.

Algeria closed the tender process for LTE frequencies, open only to current mobile network operators in the country, during the first quarter of the current year.

"In 1Q 2016, Djezzy launched 3G in five new regions and, as a result, Djezzy's 3G network covered 60% of the country's population at the end of 1Q 2016 with 75% population coverage planned for the end of 4Q 2016.

"Djezzy completed the tender for 4G/LTE frequencies with an April 2016 submission date. An award is expected in 2Q 2016 with 4G/LTE access planned for commercial launch in 3Q 2016," VimpelCom said on Thursday.

VimpelCom has announced the appointment of a new CEO for Optimum Telecom Algeria, which operates under the Djezzy brand.

The new CEO, Tom Gutjahr – previously CEO of Airtel Uganda – will join the company on 1 July and has been tasked to "lead Djezzy's digital transformation while leveraging its strong position in the local market".

Revenue generation from the data category firmed after doubling on a yearly basis. This has been attributed to the "higher usage and substantial increase in data customers as a result of the 3G roll-out".

Most telecom companies in the region are looking up to data services to offset declining income from voice. They have had to integrate instant messaging and social networking platforms such as Facebook and WhatsApp into bundle options to capitalise on growing demand for cheaper communications alternatives.

VimpelCom reported that total revenue from Algeria had remained stable for the quarter period under review although "the decrease in voice revenue was offset by growth in data, content and interconnect revenue".

Djezzy's Ebitda earnings for the first quarter period to end March increased 9% compared to the previous contrasting period. This was despite a 2% decline in subscriber numbers to 16.7 million during the first quarter period.

"Although we still face currency headwinds and adverse economic conditions in some of our markets, there are signs of an easing in pressures," said VimpelCom chief executive officer, Jean Yves Charlier.

However, the outlook for the next three quarters will likely be tough, the company said, highlighting that "ongoing aggressive price competition and device promotions" will have an impact on profit margins.