Algeria Opens Satellite Communications Licensing, Plans 2G/3G Shutdown
Image: Rass El Mal
Takeaway
The NGSO licensing round presents a compelling opportunity for satellite operators like Starlink and OneWeb to enter the Algerian market. Investors should analyze the licensing terms and potential ROI, considering the competitive landscape and regulatory environment. The planned 2G/3G shutdown by 2029 will accelerate 4G adoption, benefiting mobile network operators and handset vendors.
Algeria's Autorité de Régulation de la Poste et des Communications Electroniques (ARPCE) launched a call for tenders on April 9, 2026, to award two licenses for establishing and operating non-geostationary orbit (NGSO) satellite electronic communications networks. The move aims to foster competition and expand high-speed satellite internet access across the country. The ARPCE is targeting operators with satellite infrastructure and existing licensees. Separately, during a meeting presided over by Prime Minister Sifi Ghrieb on April 9, 2026, the government discussed plans to deactivate 2G and 3G networks by 2029. Also on April 9, 2026, the WebExpo 2026 event commenced in Constantine, gathering technology companies, entrepreneurs, and innovation experts in technology, artificial intelligence, and digital marketing.
Algeria's push for NGSO satellite communications aligns with its broader strategy to modernize its digital infrastructure and bridge the digital divide. The deactivation of 2G and 3G networks by 2029 signals a commitment to transitioning to more advanced technologies like 4G and 5G. In February 2024, Algeria launched its first communications satellite, Alcomsat-1, built by China, marking a previous milestone in developing its space capabilities. These efforts complement initiatives like the WebExpo 2026 in Constantine, designed to showcase digital innovations and foster a dynamic technology sector.
The NGSO satellite licenses will enable operators to provide low-latency, high-bandwidth internet services, particularly beneficial for remote and underserved areas where terrestrial infrastructure is limited. NGSO constellations orbit closer to Earth than traditional geostationary satellites, reducing signal latency. Companies like Starlink, OneWeb, and Telesat are major players in the NGSO satellite communications market globally. The Algerian government hopes to attract similar investment and expertise to boost its connectivity. The move comes as demand for data and bandwidth soars, with consumers and businesses requiring faster and more reliable internet access.
The opening of the satellite communications market to competition is expected to benefit consumers and businesses through increased choice and lower prices. International satellite operators with NGSO infrastructure stand to gain from access to the Algerian market. Local telecommunications companies will face increased competition but also have opportunities to partner with international players. The transition away from 2G and 3G networks may impact users with older devices, requiring them to upgrade to newer, 4G-compatible phones. This could create opportunities for mobile device vendors.
Investors should watch the ARPCE's licensing process closely, with the application deadline and selection criteria being key dates. The successful licensees will need to make significant capital investments in ground infrastructure and satellite capacity. The pace of 2G and 3G network decommissioning will also be a crucial factor, with 2029 as the target date. Any delays in the rollout of 4G and 5G networks could impact the timing of the shutdown. The performance of Alcomsat-1 will also be a factor, as it provides a baseline for Algeria's satellite communications capabilities.