196% INCREASE IN MOBILE SUBSCRIPTIONS IN ALGERIA IN YEAR TO JUNE 2005

Telecoms

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The introduction of a third player in the Algerian market in August 2004 increased competition and woke incumbent operator Mobilis out of its slumber, a state it had been in even after the launch of Orascom's Djezzy network in February 2002, causing Mobilis to take action that allowed it to grow by 45% from Q2 2004 to Q3 2004, increasing its subscription base to 900,000 in September 2004 compared with 620,000 in June 2004.

Since August 2004 each of the operators has made significant gains in subscription numbers: total mobile subscriptions grew by 21% in Q2 2005 alone.

Penetration levels stood at 27% at the end of June 2005, growing from 7% in June 2004, meaning that the potential for further growth is still high and Algeria is attracting much interest amongst analysts due to the phenomenal rate of growth.

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