Case Study: Hauts Plateaux, Algeria

In March 2006 the Development Fund launched a Shared Access to Voice pilot project with Algerian mobile operator OTA. Based in the rural Hauts Plateaux region of Algeria, the aim was to provide public telephone points in areas with little or no access to fixed line communications, and where no public telephony was currently available. Targeted users were rural fixed and nomadic shepherd communities with little disposable income. Conventional business models and distribution channels had previously proven inadequate in penetrating this market. OTA and the Development Fund partnered with local organisations that held strong links with communities in the area. These included Alsolar, a commercial supplier of solar power in the region, and the HCDS, a government department responsible for regional development.

Eight pilot sites were established in eight weeks. Psitek's Adondo units were placed in small villages and at the network of livestock and irrigation water points throughout the area. OTA made their 'Business in a Box' available to site managers (entrepreneurs) at subsidised rates to remove the need to involve microfinancing, and to ensure that financial means were no barrier to becoming a site manager. Pilot results indicated that even relatively isolated rural sites could generate the volumes of call traffic to ensure a return on investment in under two years.

OTA's 'Business in a Box' provided the site manager with an Adondo, a Yagi antenna (if required), marketing and promotional materials, and service and installation. In return, OTA requested a refundable deposit of around $100 from the site manager to ensure the safekeeping of their equipment.

The pilot ran for three months and was a great success, providing additional revenue streams for the operator and its partners, whilst the communities who lived within the site catchment area benefited from the affordable access to communication. Previously, it had been necessary for people in these communities to travel to a public payphone in another village, which could involve a round trip of up to 100km to make a call. At the same time, a new business opportunity was provided at the site. Usage of the service exceeded expectations. A target of 30 minutes average daily use per site was initially set but typical averages of 36 minutes were recorded, resulting in OTA now committed to scaling up the project on a commercial basis. Their aim is to roll out the service in approximately 250 points by the end of 2007.

"The successful pilot phase showed encouraging figures that exceeded expectations and demonstrated people's thirst to communicate. What was expected to be a luxury service rapidly became a necessity. We realised after only a few weeks that the need is real, with usage and ARPU increasing day after day, reaching an average weekly increase of approximately 103% for the first three weeks. Our analysis showed that implementing this solution leads users to save up to 80% on a phone call, once transportation costs are taken into account. We are proud to find a new way to serve the Algerian population and are aiming to roll out and adapt this solution on a continual basis to serve our clients, whilst staying profitable for all parties."

Roslane Bencharif
Strategic Planning and Business Development
Acting Manager, OTA