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Algeria: Djezzy bets on 4G to bolster subscriber interest

By , Journalist
Algeria , 04 Oct 2016

Algeria: Djezzy bets on 4G to bolster subscriber interest

Algerian mobile firm Djezzy has launched LTE services to address an increasing demand for high speed internet connectivity, according to the firm's parent company, VimpelCom.

VimpelCom, which has operations in several other countries in the world, owns Djezzy together with Global Telecom and is in the process of divesting from another African operation in Zimbabwe.

"Djezzy's 4G/LTE roll out is not simply an evolution, it's a revolution for Algeria and will change the way we interact with our customers through the digital world," said Tom Gutjahr, CEO of Djezzy.

The new LTE service will enable "customers and business customers to make high quality video calls on the move, download high definition movies and instantly access the web" on the go, according to the mobile company.

Yogesh Malik, Group CTO for VimpelCom said Algeria is an important market for the Netherlands-based telecom operator. Djezzy has about 16 million subscribers on its mobile network in Algeria.

"VimpelCom is striving to bring digital enablement to each and every one of our more than 200 million customers across all our geographies and we are pleased to add Algeria to our portfolio of countries where 4G/LTE and high-speed wireless network are today a part of our standard offering," said Malik.

VimpelCom is hoping that the new LTE services will help prop up declining Average Revenue per User numbers and subscriber number declines that had prompted an 8% decline in interim service revenue to US$519 million during the first half of the current year.

However, despite taking a knock from declining ARPUs and minutes used by subscribers, Djezzy had seen its first half 2016 mobile data revenues jump by 85% to US$32 million.

Minutes spent on the network by its subscribers weakened 14% to 333 minutes while data usage per subscriber firmed 11% to 304MB for the half year period, worsened by marked declines in the second quarter, the company said recently.

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