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2007 Telecoms, Mobile and Broadband in Africa
Southern region and Indian Ocean Islands report


September 2007

Summary | Executive Summary | Table of Contents | Order

This report provides a comprehensive overview of the trends and developments in the telecommunications markets of nine African countries: Angola, Botswana, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Zambia and Zimbabwe. Subjects covered include:

  • Key statistics;
  • Market and industry overviews;
  • Regulatory environment and structural reform;
  • Major players (fixed and mobile);
  • Infrastructure development;
  • Mobile voice and data markets;
  • Internet, including broadband development.

(Approx. number of pages: 176)
Researcher: Peter Lange
Current publication date: August 2007 (6th Edition)

Executive Summary

The diversity among the countries in this group is immense, ranging from the small Indian Ocean island nation of Mauritius, sporting some of the best telecoms market indicators of the continent, to some of the poorest countries in the world like Malawi and the island of Madagascar, as well as countries which have emerged from decades-long civil wars like Angola and Mozambique and which are consequently at a very low level of development. In between are relatively wealthy nations like Botswana and Namibia which benefit from their close ties with South Africa. In its deep political and economic crisis, neighbouring Zimbabwe is demonstrating how telecoms markets in Africa survive even the most difficult of operating conditions.


Angola

Angola is the second-largest producer of oil in sub-Saharan Africa, and the recent rise of oil prices may push GDP growth as high as 35% in 2007. With peace restored in 2002 after almost 30 years of civil war, foreign investment has multiplied. However, Angola Telecom’s fixed-line network still serves less than 1% of the population. The licensing of four new fixed-wireless operators in 2002 has introduced competition to this sector, using 3G wireless technologies and WiMAX to provide advanced services. A national fibre optic backbone network is being implemented. Privatisation of Angola Telecom and the licensing of a third mobile operator are expected in the not too distant future. For the country overview, see chapter 1, page 1.


Botswana

Botswana is one of the continent’s wealthiest nations with a thriving economy mainly based on diamond exploitation and tourism. Major steps were taken in 2006 towards full liberalisation of the already competitive telecommunications sector. Mobile penetration has passed the 50% mark which is more than twice the African average, while the government-owned national operator BTC has seen a continued decline in the number fixed-line connections despite the introduction of ADSL broadband services. The government is in the process of privatising BTC which, through a new service-neutral licence, is now also enabled to compete in the mobile sector. For the country overview, see chapter 2, page 20.


Madagascar

The new private owners of Madagascar’s incumbent telco, Telma, have managed to almost double the number of fixed line customers in 2006 alone after years of stagnation, albeit from a very low base. They also entered the mobile market successfully as the country’s third player. Penetration rates in both sectors are still extremely low, promising excellent growth potential. Pent-up demand for Internet access and broadband capabilities, resulting from the traditionally underdeveloped fixed network, will continue driving both market sectors. With one of the lowest GDPs per capita in the world, there will be limits to the growth of Madagascar’s telecoms market, but plans to exploit and export crude oil and natural gas reserves may deliver a boost to the economy. For the country overview, see chapter 3, page 40.


Malawi

Malawi’s incumbent telco, MTL, was finally privatised in 2006 following several unsuccessful attempts. A second national operator was licensed in May 2007 and the county’s third mobile licence is expected later in the year. Malawi’s telecommunications sector is among the least developed in Africa with a fixed-line penetration rate below 1%, despite more than doubling the number of fixed-line connections in the past five years. The mobile sector has grown more than ten-fold during the same period, but market penetration is still very low in this sub-sector as well, around 5%. Several ISPs are rolling out wireless broadband networks, and the planned liberalisation of Internet telephony (VoIP) should create further opportunities. For the country overview, see chapter 4, page 52.


Mauritius

The island nation of Mauritius sports some of the best telecommunication market indicators in Africa and has been the first with many innovations: It launched Africa’s first cellular system in 1989, the first commercial 3G mobile service in November 2004, and the world’s first nationwide high-speed wireless broadband network based on the WiMAX standard in 2005. Mauritius is actively pursuing a policy to make telecommunications the fifth pillar of its economy after sugar, textiles, tourism and financial services, and to become a regional telecom hub with Singapore as a role model. The incumbent telco has been partially privatised and all sectors of the market are open to competition. A second fixed-line and third mobile operator launched services in 2006, giving additional impetus to the market moving into 2007. For the country overview, see chapter 5, page 64.


Mozambique

Fifteen years of peace and radical reforms have transformed Mozambique into one of the fastest-growing economies on the continent. The country was one of the first in the region to reform its telecommunications landscape, immediately after a peace accord had been reached in 1992. The mobile sub-sector has experienced excellent growth rates, and yet, market penetration is still only about half the African average. An announcement regarding the licensing of a third mobile operator is expected before the end of 2007. Internet usage is expected to receive a boost from wireless broadband networks currently being rolled out and the introduction of 3G mobile services in the second half of 2007. For the country overview, see chapter 6, page 82.


Namibia

Namibia was one of the last countries in Africa to introduce competition in the mobile communications sector when a second network finally launched in 2007. Despite this, the country had already achieved a market penetration rate above the African average. The other mobile network was partially privatised in 2006 and has launched 3G services. The fixed-line incumbent, Telecom Namibia, quietly entered the lucrative mobile market as the third player but was put on hold by the regulator until the new ICT Bill brings clarity about fixed-mobile convergence, among other issues. Several WiMAX networks currently under development will boost Internet connectivity and bring additional competition to the voice market once Internet telephony (VoIP) is deregulated. With an extensive fibre optic backbone, the country is well positioned to remain one of the most developed telecommunications markets in Africa. For the country overview, see chapter 7, page 97.


Zambia

Zambia has an independently regulated telecoms sector with three competing mobile networks and a monopoly fixed-line operator, Zamtel. While the mobile sector has experienced excellent growth, market penetration is still relatively low at little more than half the African average. The fixed-line network is at a very low level of development, which in turn has impeded growth in the Internet sector. The country’s ISPs are rolling out wireless broadband networks, positioning themselves as competitors in the telecoms sector once Internet telephony (VoIP) is fully liberalised – a key component in Zambia’s new ICT Policy which was launched in early 2007. For the country overview, see chapter 8, page.115.


Zimbabwe

Zimbabwe’s almost decade-old deep political and economic crisis has not spared the country’s telecom industry, with a dwindling local currency, hyper inflation and government interference creating a difficult operating environment. Attempts to privatise the national telco during this time have failed, as has a second national operator, unable to raise the necessary funding. Growth of the country’s three mobile networks has been slowed down temporarily, but an immense pent-up demand is now being addressed following major infrastructure upgrades, including the introduction of 3G mobile services. The country’s backbone network is being upgraded, including fibre optic links which will also improve Internet connectivity. For the country overview, see chapter 9, page 131.

Key highlights:

  • Fixed-line, mobile and Internet market forecasts to 2010 and 2015 for Angola and Madagascar, two of Africa’s most promising growth markets driven by oil revenues;
  • Privatisation of incumbent telcos expected in Angola and Botswana;
  • Successful turnaround story of Madagascar’s incumbent telco following privatisation;
  • Additional mobile licences expected in Angola, Malawi and Mozambique;
  • 3G mobile services launched in Namibia, expected in Angola, Mozambique and Zimbabwe before the end of the year;
  • WiMAX networks are operational or under development in almost every country in the region;
  • Converged Triple Play services (voice, broadband data and IPTV) launched in Mauritius;
  • Liberalisation of VoIP expected in Malawi;
  • In its almost decade-old deep political and economic crisis, Zimbabwe demonstrates how telecoms markets in Africa survive even the most difficult of operating conditions.

See this documents 'Table of Contents' for more details.

 
1.ANGOLA 
1.1Key statistics 
1.2Telecommunications market 
1.2.1Overview of Angola’s telecom market 
1.3Regulatory environment 
1.3.1Historic background 
1.3.2Basic Telecommunications Law 2001 
1.3.3Department of Telecommunications 
1.3.4Regulatory authority 
1.3.5National Telecommunications Council (NTC) 
1.3.6National Commission for Information Technology 
1.3.7Universal Service Fund USF) 
1.3.8Value-added services 
1.3.9Privatisation of Angola Telecom 
1.3.10Interconnection 
1.3.11Telecom sector liberalisation in Angola 
1.4Fixed network operators in Angola 
1.4.1Angola Telecom 
1.4.2Fixed wireless operators 
1.5Telecommunications infrastructure 
1.5.1National telecom network 
1.5.2International infrastructure 
1.6Broadband and Internet market 
1.6.1Initial development 
1.6.2Overview 
1.6.3Broadband market 
1.6.4Angola’s ISP market 
1.6.5Internet access locations 
1.6.6Internet Exchange Point (IXP) 
1.7Convergence 
1.7.1Voice over Internet Protocol (VoIP) telephony 
1.7.2Broadcasting market 
1.7.3Radio 
1.7.4Television 
1.7.5Broadband over Cable TV (CATV) 
1.8Mobile communications 
1.8.1Overview of Angola’s mobile market 
1.8.2Mobile technologies 
1.8.3Major mobile operators 
1.8.4Mobile voice services 
1.9Forecasts 
1.9.1Notes on scenario forecasts 
1.9.2Forecasts – fixed-line services 
1.9.3Forecast – Internet services 
1.9.4Forecast – mobile services 
2.BOTSWANA 
2.1Key statistics 
2.2Telecommunications market 
2.2.1Overview of Botswana’s telecom market 
2.3Regulatory environment 
2.3.1Historic background 
2.3.2Regulatory authority 
2.3.3Universal Service and Access Strategy 
2.3.4Botswana to develop its own cyber law 
2.3.5National ICT policy master plan ‘Maitlamo’ 
2.3.6Telecom sector liberalisation in Botswana 
2.3.7Privatisation of Botswana Telecom 
2.3.8Interconnection 
2.4Fixed network operator in Botswana 
2.4.1Botswana Telecommunications Corporation (BTC) 
2.5Telecommunications infrastructure 
2.5.1National telecom network 
2.5.2International infrastructure 
2.6Data market 
2.6.1Managed data services 
2.6.2VSAT networks 
2.7Broadband and Internet market 
2.7.1Overview 
2.7.2Botswana’s ISP market 
2.7.3Broadband market 
2.8Convergence 
2.8.1Voice over Internet Protocol (VoIP) telephony 
2.8.2Next Generation Network (NGN) 
2.8.3E-commerce 
2.8.4E-government 
2.8.5Broadcasting market 
2.9Mobile communications 
2.9.1Overview of Botswana’s mobile market 
2.9.2Regulatory issues 
2.9.3Major mobile operators 
2.9.4Mobile content 
3.MADAGASCAR 
3.1Key statistics 
3.2Telecommunications market 
3.2.1Overview of Madagascar’s telecom market 
3.3Regulatory environment 
3.3.1Telecommunications reform 
3.3.2National ICT Policy 
3.3.3Regulatory authority 
3.3.4Privatisation of Telecom Malagasy (Telma) 
3.4Fixed network operators in Madagascar 
3.4.1Telecom Malagasy 
3.5Telecommunications infrastructure 
3.5.1National telecom network 
3.5.2International infrastructure 
3.6Data market 
3.6.1Data licensees 
3.7Broadband and Internet market 
3.7.1Overview of the Internet in Madagascar 
3.7.2Internet access locations 
3.7.3Madagascar’s ISP market 
3.7.4Broadband market 
3.7.5Voice over Internet Protocol (VoIP) 
3.8Mobile communications 
3.8.1Overview of Madagascar’s mobile market 
3.8.2Major mobile operators 
3.9Broadcasting market 
3.9.1Overview 
3.10Forecasts 
3.10.1Notes on scenario forecasts 
3.10.2Forecasts – fixed-line services 
3.10.3Forecasts – Internet services 
3.10.4Forecasts – mobile services 
4.MALAWI 
4.1Key statistics 
4.2Telecommunications market 
4.2.1Overview of Malawi’s telecom market 
4.3Regulatory environment 
4.3.1Malawi Communications Act 1998 
4.3.2ICT Policy 
4.3.3Regulatory authority 
4.3.4Telecom sector liberalisation in Malawi 
4.3.5Privatisation of Malawi Telecom 
4.3.6Interconnection 
4.4Fixed network operator 
4.4.1Malawi Telecommunications Ltd (MTL) 
4.5Telecommunications infrastructure 
4.5.1National telecom network 
4.5.2International infrastructure 
4.6Broadband and Internet market 
4.6.1Overview 
4.6.2Malawi’s ISP market 
4.6.3Broadband market 
4.6.4Voice over Internet Protocol (VoIP) 
4.7Mobile communications 
4.7.1Overview of Malawi’s mobile market 
4.7.2Major mobile operators 
4.8Broadcasting market 
5.MAURITIUS 
5.1Key statistics 
5.2Telecommunications market 
5.2.1Overview of Mauritian telecom market 
5.3Regulatory environment 
5.3.1Telecommunications Act 1998 
5.3.2Information and Communication Technology Act 2001 
5.3.3Regulatory authority 
5.3.4National Telecommunications Policy (NTP – 2003, 2004) 
5.3.5Telecom sector liberalisation in Mauritius 
5.3.6Privatisation of Mauritius Telecom 
5.4Fixed network operators in Mauritius 
5.4.1Mauritius Telecom Group 
5.4.2Mahanagar Telephone (Mauritius) Ltd 
5.5Telecommunications infrastructure 
5.5.1National telecom networks 
5.5.2International infrastructure 
5.6Data market 
5.6.1Data network infrastructure 
5.7Broadband and Internet market 
5.7.1Overview 
5.7.2Internet access locations 
5.7.3ISP market 
5.7.4Internet Exchange Point (IXP) 
5.7.5Broadband market 
5.7.6Voice over Internet Protocol (VoIP) 
5.8Convergence 
5.8.1NetTV 
5.8.2Broadcasting market 
5.8.3E-commerce 
5.8.4IT incentives 
5.8.5Cyber-City Project 
5.8.6E-government project 
5.9Mobile communications 
5.9.1Overview of the Mauritian mobile market 
5.9.2Mobile technologies 
5.9.3Major mobile operators 
6.MOZAMBIQUE 
6.1Key statistics 
6.2Telecommunications market 
6.2.1Overview of Mozambique’s telecom market 
6.3Regulatory environment 
6.3.1Telecommunications Law 1992 
6.3.2Draft Telecommunications Bill 2002 
6.3.3Regulatory authority 
6.3.4National Commission on Information 
6.3.5Telecom sector liberalisation in Mozambique 
6.3.6Privatisation 
6.3.7Interconnection 
6.4Fixed network operator 
6.4.1Telecomunicações De Moçambique (TDM) 
6.5Telecommunications infrastructure 
6.5.1National telecom network 
6.5.2International infrastructure 
6.6Data market 
6.6.1Overview 
6.7Broadband abd Internet market 
6.7.1Overview 
6.7.2Internet connectivity 
6.7.3Internet access locations 
6.7.4E-government 
6.7.5Mozambique’s ISP market 
6.7.6Broadband market 
6.8Mobile communications 
6.8.1Overview of Mozambique’s mobile market 
6.8.2Major mobile operators 
6.8.3Third mobile licence 
6.8.43G 
6.9Broadcasting 
6.9.1Overview of TV and radio broadcasting 
7.NAMIBIA 
7.1Key statistics 
7.2Telecommunications market 
7.2.1Overview of Namibia’s telecom market 
7.3Regulatory environment 
7.3.1Communications division 
7.3.2Regulatory authority 
7.3.3Post and Telecommunications Bill 1999 
7.3.4Draft Communications Bill 2002 
7.3.5Telecom sector liberalisation in Namibia 
7.4Fixed network operator 
7.4.1Telecom Namibia Ltd 
7.5Telecommunications infrastructure 
7.5.1National telecom network 
7.5.2International infrastructure 
7.6Data market 
7.6.1Data services 
7.6.2Integrated Services Digital Network (ISDN) 
7.6.3Teleconferencing 
7.6.4VSAT networks 
7.7Broadband and Internet market 
7.7.1Overview 
7.7.2Internet connectivity 
7.7.3Namibia’s ISP market 
7.7.4Overview of selected ISPs 
7.7.5SchoolNet Namibia 
7.7.6Broadband market 
7.8Convergence 
7.8.1Broadcasting market 
7.8.2Voice over Internet Protocol (VoIP) 
7.8.3Next-Generation Network (NGN) 
7.8.4E-services 
7.9Mobile communications 
7.9.1Overview of Namibia’s mobile market 
7.9.2Mobile technologies 
7.9.3Major mobile operators 
7.9.4Mobile voice services 
7.9.5Mobile content and applications 
8.ZAMBIA 
8.1Key statistics 
8.2Telecommunications market 
8.2.1Overview of Zambia’s telecom market 
8.3Regulatory environment 
8.3.1Telecommunications Act 1994 
8.3.2New ICT Policy 2007 
8.3.3Regulatory authority 
8.3.4Telecom sector liberalisation in Zambia 
8.3.5Privatisation of Zamtel 
8.4Fixed network operator 
8.4.1Zambia Telecommunications Ltd (Zamtel) 
8.5Telecommunications infrastructure 
8.5.1National telecom network 
8.5.2International infrastructure 
8.6Broadband and Internet market 
8.6.1Overview 
8.6.2Internet access locations 
8.6.3Broadband market 
8.6.4Zambia’s ISP market 
8.7Mobile communications 
8.7.1Overview of Zambia’s mobile market 
8.7.2Major mobile operators 
8.7.3Mobile voice services 
8.8Broadcasting market 
8.8.1Overview 
8.8.2Regulatory issues 
9.ZIMBABWE 
9.1Key statistics 
9.2Telecommunications market 
9.2.1Overview of Zimbabwe’s telecom market 
9.3Regulatory environment 
9.3.1Sector Reform Policy 1996 
9.3.2Posts and Telecommunications Bill 2000 
9.3.3Interception of Communications Bill 
9.3.4New ICT Policy draft 2006 
9.3.5International gateways 
9.3.6Regulatory authority 
9.3.7Telecom sector liberalisation 
9.3.8Privatisation of TelOne and NetOne 
9.4Fixed network operators in Zimbabwe 
9.4.1TelOne 
9.4.2TeleAccess Zimbabwe (Pvt) Ltd 
9.4.3Afritell 
9.5Telecommunications infrastructure 
9.5.1National telecom network 
9.5.2International infrastructure 
9.6Data communications 
9.6.1Data licensees 
9.7Broadband and Internet market 
9.7.1Overview 
9.7.2Internet initiatives 
9.7.3Zimbabwe’s ISP market 
9.7.4Overview of selected ISPs 
9.7.5Broadband market 
9.8Mobile communications 
9.8.1Overview of Zimbabwe’s mobile market 
9.8.2Mobile technologies 
9.8.3Major mobile operators 
9.8.4Mobile voice services 
10.GLOSSARY OF ABBREVIATIONS 
Exhibit 1 – Telecommunications licences in Mauritius – 2007 
Exhibit 2 – Vodacom’s in and out of Zambia 


Table 1 – Country statistics Angola – 2006 
Table 2 – Telephone network statistics – 2006 
Table 3 – Internet provider statistics – 2006 
Table 4 – Internet user statistics – 2006 
Table 5 – Mobile statistics – 2006 
Table 6 – National telecommunications authorities 
Table 7 – Fixed lines in service and teledensity – 1996 - 2006 
Table 8 – Internet users and penetration – 1997 - 2006 
Table 9 – Mobile operators, technology, subscribers and annual growth – 2006 
Table 10 – Mobile subscribers and penetration – 1995 – 2006 
Table 11 – Forecast fixed-line and fixed-wireless subscribers growth – 2010; 2015 
Table 12 – Forecast Internet user growth – 2010; 2015 
Table 13 – Forecast mobile subscriber growth – 2010; 2015 
Table 14 – Country statistics Botswana – 2006 
Table 15 – Telephone network statistics – March 2006 
Table 16 – Internet provider statistics – 2006 
Table 17 – Internet user statistics – 2006 
Table 18 – Mobile statistics – 2006 
Table 19 – National telecommunications authorities 
Table 20 – Fixed lines in service and teledensity – 1995 - 2006 
Table 21 – Internet users and penetration – 1998 - 2006 
Table 22 – Mobile operators, technology, subscribers and annual growth – 2006 
Table 23 – Mobile subscribers and penetration – 1998 - 2006 
Table 24 – Country statistics Madagascar – 2006 
Table 25 – Telephone network statistics – 2006 
Table 26 – Internet provider statistics – 2006 
Table 27 – Internet user statistics – 2006 
Table 28 – Mobile statistics – 2006 
Table 29 – National telecommunications authorities 
Table 30 – Fixed lines, teledensity and subscribers, public payphones, traffic and revenue – 1998 - 2006 
Table 31 – Internet users, penetration, subscribers, hosts, traffic, and revenue – 1996; 1998 - 2006 
Table 32 – Mobile operators, technology, subscribers and annual growth – 2006 
Table 33 – Mobile subscribers, penetration, traffic and revenue – 1998 - 2006 
Table 34 – Forecast fixed-line and fixed-wireless subscriber growth – 2010; 2015 
Table 35 – Forecast Internet user growth – 2010; 2015 
Table 36 – Forecast mobile subscriber growth – 2010; 2015 
Table 37 – Country statistics Malawi – 2006 
Table 38 – Telephone network statistics – 2006 
Table 39 – Internet provider statistics – 2006 
Table 40 – Internet user statistics – 2006 
Table 41 – Mobile statistics – 2006 
Table 42 – National telecommunications authorities 
Table 43 – Fixed lines in service and teledensity – 1995 - 2006 
Table 44 – Internet users and penetration – 1997 - 2006 
Table 45 – Mobile operators, technology, subscribers and annual growth – 2006 
Table 46 – Mobile subscribers and penetration – 1995 - 2006 
Table 47 – Country statistics Mauritius – 2006 
Table 48 – Telephone network statistics – 2006 
Table 49 – Internet provider statistics – 2006 
Table 50 – Internet user statistics – 2006 
Table 51 – Mobile statistics – 2006 
Table 52 – National telecommunications authorities 
Table 53 – Fixed lines in service and teledensity – 1995 - 2006 
Table 54 – Internet users and penetration – 1996 - 2006 
Table 55 – Dial-up Internet subscribers – 2000 - 2005 
Table 56 – Mobile operators, technology, subscribers and annual growth – 2006 
Table 57 – Mobile subscribers and penetration – 1995 - 2006 
Table 58 – Country statistics Mozambique – 2006 
Table 59 – Telephone network statistics – 2006 
Table 60 – Internet provider statistics – 2006 
Table 61 – Internet user statistics – 2006 
Table 62 – Mobile statistics – 2006 
Table 63 – National telecommunications authorities 
Table 64 – Fixed lines in service and teledensity – 1995 - 2006 
Table 65 – Internet users and penetration – 1996 - 2006 
Table 66 – Mobile operators, technology, subscribers and annual growth – 2006 
Table 67 – Mobile subscribers and penetration – 1997 - 2006 
Table 68 – Country statistics Namibia – 2006 
Table 69 – Telephone network statistics – 2006 
Table 70 – Internet provider statistics – 2006 
Table 71 – Internet user statistics – 2006 
Table 72 – Mobile statistics – 2006 
Table 73 – National telecommunications authorities 
Table 74 – Fixed lines in service and teledensity – 1995 - 2006 
Table 75 – Internet users and penetration– 1996 - 2006 
Table 76 – Mobile subscribers and penetration – 1995 - 2006 
Table 77 – Country statistics Zambia – 2006 
Table 78 – Telephone network statistics – 2006 
Table 79 – Internet provider statistics – 2007 
Table 80 – Internet user statistics – 2006 
Table 81 – Mobile statistics – 2006 
Table 82 – National telecommunications authorities 
Table 83 – Fixed lines in service and teledensity – 1995 - 2006 
Table 84 – Internet users and penetration – 1995 - 2006 
Table 85 – Mobile operators, technology, subscribers and annual growth – 2006 
Table 86 – Mobile subscribers and penetration – 1995 - 2006 
Table 87 – Country statistics Zimbabwe – 2006 
Table 88 – Telephone network statistics – 2006 
Table 89 – Internet provider statistics – 2006 
Table 90 – Internet user statistics – 2006 
Table 91 – Mobile statistics – 2006 
Table 92 – National telecommunications authorities 
Table 93 – Fixed lines in service and teledensity – 1995 - 2006 
Table 94 – Internet users and penetration – 1996 - 2006 
Table 95 – Mobile operators, technology, subscribers and annual growth – 2006 
Table 96 – Mobile subscribers and penetration – 1997 - 2006

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