Algerian authorities officially launched 5G services on Wednesday, calling it a key step in modernizing the country’s telecommunications sector and boosting the digital economy.
Why It Matters
- This marks the beginning of a massive six-year phased rollout intended to establish “gradual and balanced coverage” across the country.
- The technology is expected to unlock advanced services like AI, IoT, and cloud computing, potentially transforming sectors like health, education, and industry.
The Details
- Three major operators—Mobilis, Djezzy, and Ooredoo—were awarded 5G licenses last July. The licenses cost 63.9 billion dinars (about $492 million).
- The deployment plan starts with eight pilot provinces before the network is extended nationwide.
- Speed tests conducted by Mobilis in February 2025 reached speeds up to 1.2 gigabits per second.
The Big Picture
- The move comes as Algeria faces rapidly growing demand for bandwidth.
- The government’s action follows a trend across the continent to upgrade connectivity and support burgeoning digital economies.
The Challenges
- Deployment Cost: A 2022 Ericsson study estimated the base cost of 5G deployment in any country ranges from $3 billion to $8 billion, with up to a 35% additional investment to expand coverage. This raises concerns that the rollout may initially favor more profitable urban areas, leaving rural regions behind.
- Device Affordability: 5G-compatible smartphones start around $150. A 2022 GSMA report highlighted that this price remains inaccessible for many African consumers, suggesting device financing programs may be required to drive nationwide adoption.
What’s Next
- Telecom operators are now authorized to begin installing their first 5G sites and prepare consumer and business offers.
