II.

Tunisian Telecommunication Industry

Tunisia has one of the most developed telecommunications infrastructures in the Northern
African region, with some of Africa's highest market penetration rates, and information
technology is projected to contribute 13.5% of GDP in 2011. Mobile phone subscription rates
have continued to grow since over the last decade, showing a CAGR of 8.57% during 20052008, while fixed-line subscribers have declined slightly at a CAGR of -0.30% over the same
period.
The former government-owned telecom operator Tunisie Telecom was part-privatized in 2006,
opening up the industry to competition from other providers. France Telecom-owned Orange
was licensed as the country's second fixed-line and third mobile operator in June 2009 and
began providing 3G services in May 2010. The internet sector has developed rapidly, supported
by a nationwide optical fiber backbone and some of the lowest broadband prices in Africa.
Tunisia has one of the most developed telecommunications infrastructures in the North African
region and sports some of the continent's highest market penetration rates. The mobile sector
has experienced exceptional growth since the introduction of competition in 2002. A nationwide
optical fiber backbone and international access via submarine cables, coupled with some of the
lowest broadband prices in Africa have supported rapid development of the Internet sector.
Table 2 provides an overview of country's key indicators in the telecom sector.
Table 2: Tunisia - Telecom Industry Snapshot

Segment

Subscribers(million)

Penetration (%)

Fixed-line

1.279

12.35%

Internet

3.5

33.40%

Mobile

9.754

95.38%

A. Mobile Market

Tunisia has one of the more developed mobile markets in Africa as indicated by the
high level of mobile penetration, which has exceeded 93 percent.
There are three mobile operators in the country - Tunisie Telecom, Ooredoo
(FormerlyTunisiana), and most recently Orange, who began operating the first
country-wide 3G network in May 2010. As a state-owned utility, until 2001 Tunisie
Telecom enjoyed being the only operator in a monopoly market, but competition
was finally introduced in 2002 by the launch of mobile services from Ooredoo
(Formerly Tunisiana), and in this more competitive market prices came down,
stimulating growth.

B. Market Size

Tunisia has one of the most developed telecommunications infrastructures in the North
African region and sports some of the continent's highest market penetration rates. The
mobile sector has experienced exceptional growth since the introduction of competition in
2002. A nationwide optical fiber backbone and international access via submarine cables,
coupled with some of the lowest broadband prices in Africa have supported rapid
development of the Internet sector.
The total number of mobile subscribers in Tunisia at the end of 2010 was
approximately 10.95 million, with a corresponding mobile penetration rate of 103.5 percent.
During the 1st Quarter of 2011 Tunisia had recorded 11.28 Million Subscribers with the
penetration rate exceeding more than 105%.
Table 3: the mobile subscribers in Tunisia for the period from 2002 to 2011

Year End

Subscribers(millions)

Penetration (%)

2002

0.56

6%

2003

1.91

19.3 %

2004

3.73

37.5 %

2005

5.68

56.4 %

2006

7.33

72.1 %

2007

8.77

85.1 %

2008

9.76

93.9 %

2009

10.48

99.8 %

2010

10.95

103.4 %

2011

11.28

105.5 %

Source: Blycroft Publishing

Figure 1 illustrates the trends and forecasts for mobile subscribers and penetration rate in
Tunisia for the 10-year period from 2002 to 2011.

Figure 1: Tunisia - Mobile Subscribers and Penetration (2002-2011)

III.

Major Telecommunication providers in Tunisia

There are three mobile network operators in Tunisia - the incumbents Tunisie Telecom and
Tunisiana, which each accounted for approximately half the existing subscribers at the end
of 2009, and Orange, which began operating in May 2010.
Figure 2 illustrates the market share of the operators in terms of their subscriber base for
June 2005.
Figure 2: Tunisia - Market Share of Mobile Network Operators (June 2010)

Source: Company Reports

The three operators currently providing mobile services in Tunisia are discussed below.

IV.

Tunisie Telecom

Tunisie Telecom was the first mobile operator in Tunisia and was completely owned by the
Tunisian government until it was part-privatized in July 2006, when a 35 percent stake was
sold to a consortium of TECOM Investments and Dubai Investment Group (TECOM-DIG).
Tunisia's telecom market will be one of the fastest-growing markets in the Africa/Middle
East region with total telecom revenue estimated to grow at a CAGR of 5.4 percent over the
next five years, reaching $2.2 billion in 2014.
Figure 3 illustrates the ownership split of Tunisie Telecom

Source: Company Reports

A. Phone services
1. GSM :
The operator's GSM network covers 100 % of the urban population and 85 % of the
rural population. The operator also provides value-added services, such as SMS, voice
messaging, etc. Tunisie Telecom had 6 million mobile subscribers at 2011.