10 Ways Government Stifles Competition
In Algeria, telecommunications are regulated by a central government authority, and there are three (count them) mobile operators who were issued provisional 3G licenses, one of which is state owned. In four major provinces, all three are required to deploy networks, and each gets exclusive 3G rights to a selection of the remaining provinces for a maximum of one year after receiving their license. It is no surprise that the state owned operator got first choice, essentially removing competition for best access (highest incomes, largest urban populations) from the picture. This was reported on in January, 2014 by BMI Research which contends that “competition in Algeria’s telecoms sector has been hindered by high government stakes in fixed and mobile telecoms operators.” This is a typical example of how regulatory favoritism stifles competition.
