(Ecofin Agency) - Fiber optic internet for businesses and homes was launched in Algeria in 2018. By November 2023, the service exceeded one million subscribers.

Algeria’s Ministry of Post and Telecommunications announced last week that 1.5 million households are now connected to fiber-to-the-home (FTTH) internet. This marks a remarkable growth of 2730% since November 2020, when only 53,000 homes were connected.

This surge is part of Algeria’s effort to expand FTTH access, led by the government in partnership with state-owned operator Algérie Télécom. Investments have been made to modernize the aging copper network and gradually shift subscribers from old xDSL connections to the faster, more reliable FTTH technology. The network has also been extended, and Algérie Télécom introduced promotional offers, providing internet speeds up to 1 gigabit per second on demand.

"FTTH offers unique technical advantages in terms of quality, enhancing the user experience and meeting their needs. With fiber optic technology, users get access to high-speed internet, avoiding electromagnetic interference and ensuring quick responsiveness," the ministry explained in a statement.

Despite the widespread use of mobile internet in Algeria, the government continues to push FTTH as a future-proof technology. According to the Regulatory Authority for Post and Electronic Communications (ARPCE), the country had 48.85 million mobile internet subscribers as of March 31, 2024, while the World Bank estimates Algeria’s population at 45.6 million. Out of these, 44.26 million use 4G services.

FTTH is expected to enable access to bandwidth-heavy services such as video on demand, the Internet of Things (IoT), remote work, and Internet Protocol TV (IPTV). Groupe Télécom Algérie, the parent company of Algérie Télécom, has anticipated this demand and plans to diversify into these segments under its 2024-2028 strategy. The company also aims to embrace the "everything as a service" (XaaS) model in the future.

Despite this progress, only 5.8 million households in Algeria have internet access through any technology, out of 7.4 million total households as of March 31. FTTH adoption is still low, covering only 20.3% of households, and just 25.6% of connected households use fiber technology.

Challenges like the cost of service could slow down the adoption of FTTH. According to the 2024 ICT Development Index from the International Telecommunication Union (ITU), the cost of fixed internet in Algeria represents 3.9% of gross national income (GNI) per capita. This is higher than the affordability benchmark of 2%. Mobile internet, on the other hand, is cheaper, costing 2.4% of GNI per capita.