ALGIERS: Algeria has dropped Orascom Telecom’s adverts from all of the country’s terrestrial television stations, a source with direct knowledge of the situation said, the latest move in a long-running dispute.
Egypt-based Orascom Telecom has been locked in a disagreement over its Algerian unit since the Algerian government last year hit it with a back tax claim, banned it from transferring cash overseas and blocked its sale to South Africa’s MTN.
Algerian state television, which controls all the country’s terrestrial stations, refused to renew an annual advertising contract with the Orascom Telecom unit that trades under the name Djezzy, the source told Reuters.
"They (state television) are no longer agreeing to run Djezzy’s ads," said the source, who did not want to be identified because of the sensitivity of the issue.
A senior executive with state television did not respond to a Reuters request for comment. An Orascom Telecom spokeswoman at the firm’s headquarters in Cairo declined to comment.
Advertisements for the Orascom Telecom unit continue to run on state-controlled radio and in several newspapers, including some which are state-owned.
Holy month
However, the firm’s commercials have stopped appearing on state television at least since the Muslim holy month of Ramadan began on Aug. 11.
In previous years Djezzy has intensified its TV advertising during Ramadan, which is traditionally a time of high spending and gift-giving.
Djezzy has for several years been one of the biggest spenders on advertising in Algeria. Djezzy’s yearly advertising budget has been around $40 million, the source said.
The source said that Djezzy had transferred some of its television advertising to Tunisia-based Nessma TV and Arab satellite broadcaster MBC, which are widely watched in Algeria.
After its deal with MTN was blocked, Orascom Telecom agreed to negotiate the sale of Djezzy to the Algerian government. A commission, led by an Algerian accountant, will next month begin work on a valuation for the unit.
Some analysts say the Algerian government is making Djezzy’s operating environment difficult to put pressure on its owners and drive down the price.
Algerian officials say they are upholding the law in their dealings with Orascom Telecom and deny applying any pressure.
