• Home
• Telecoms & IT
• News Article

Financial dispute leaves thousands without internet in Algeria

Tens of thousands of Algerians are without internet connections following the failure of negotiations between public operator Algerie Telecom and service provider EEPAD over unpaid debt.
Thirty-five thousand high-speed internet subscribers in Algeria have been without a connection since the beginning of September, due to a financial dispute between Algerie Telecom and service provider EEPAD. Some 16,000 internet cafes have also been affected by the disruption.

Speaking in Algiers on Friday (September 11th), Minister of Post, Information Technology and Communication Hamid Bessalah called on EEPAD subscribers to begin searching for other providers.

The minister indicated on the same occasion that EEPAD's growing record of non-payment pushed Algerie Telecom 's administrative council to sever the company's connection.

For the connection to be restored, EEPAD must pay off its 3.5 billion-dinar debt. According to AT officials, repayments are three years overdue.

This last round of the conflict dates back to the spring. In a letter to its client on April 1st, AT warned EEPAD of its intention to cut connections if the latter did not pay what it owed. EEPAD asked to negotiate a repayment schedule, which was granted under an April 13th agreement. The first payment was to be 430 million dinars.

The company had difficulty getting the funds together and tried to delay payment. This attempt was rejected by AT and service was suspended for four days on May 4th.

The communications ministry intervened to resolve the problem, granting a four-month extension to the private provider. When this period came to an end without payment, Algerie Telecom disconnected service at midnight on September 1st.

An attempt at mediation led by the Post and Telecommunications Regulatory Authority (ARPT) proved unfruitful. This institution ultimately criticised the position taken by AT in the dispute.

In a September 6th statement on state radio, ARPT communications director Amel Tefridj stressed that negotiations were still under way.

"This is why we at the ARPT are surprised by the decision taken by Algerie Telecom to suspend the provision of services for the provider EEPAD," she said.

Algerie Telecom CEO Moussa Benhamadi said that his group "had no alternative other than cutting connections".

"The operator needs money, because it is in the middle of a massive investment programme, expanding high-speed and ultra-high-speed telecommunications infrastructure, while facing a drop in landline revenues," he concluded.

EEPAD chief Nouar Harzallah suggested the two entities resolve their dispute through a transfer of a portion of his company to Algerie Telecom . The public company rejected this proposal due to EEPAD's outstanding debt. Also rejected was a proposed write-off of a portion of the debt.

Facing criticism over what many view as punishment of thousands of subscribers, the telecommunications ministry raised the possibility of helping EEPAD customers switch to AT networks.

Until the problem is resolved, EEPAD customers can do little but get angry.

Amine was forced to close his internet cafe due to the conflict. "We're being held hostage in this conflict, and we really don't know the reasons behind it," he said. "One thing is for certain though: we paid a year's subscription in advance."

"I'd like to know who will refund our money: the state, which took the decision, or EEPAD?" he asked.

Siham, who has an EEPAD ADSL connection at home, supports the migration of EEPAD users over to Algerie Telecom service, provided the solution comes quickly.

One EEPAD employee told Magharebia it was too early to consider such a step. "We are hoping for greater flexibility in the positions adopted by the authorities so that the company and its subscribers are not punished," the employee said.

EEPAD blames its financial situation on the April 2008 decision by former telecommunications minister Boudjemaa Haïchour to reduce ADSL connection fees by 50%.

By Fidet Mansour for Magharebia in Algiers

© Magharebia.com 2009