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2008 Telecoms, Mobile and Broadband in Africa - Geographic Bundle Report
Paul Budde Communication Pty Ltd., Dec 2008, Pages: 930
Compilation of the 5 African geographic reports - Africa - Telecoms, Mobile and Broadband in - Northern Region, Western Region, Central and Eastern Regions, Southern Region and Indian Ocean Islands and Lesotho, South Africa and Swaziland.
With over 930 pages of research, Mobile & Broadband in Africa - Geographic series contains a comprehensive analysis of the telecoms industry and the companies involved in it.
Research on these 38 countries is divided into the following volumes:
Volume 1 - Central and Eastern Regions (Cameroon, the Democratic Republic of Congo, Ethiopia, Gabon, Kenya, Rwanda, Tanzania and Uganda).
Volume 2 - Northern Africa (Algeria, Chad, Egypt, Libya, Morocco, Sudan and Tunisia).
Volume 3 - Southern Africa and Indian Ocean Islands (Angola, Botswana, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Zambia, Zimbabwe).
Volume 4 - Western Africa (Benin, Burkina Faso, Cote d’Ivoire, Gambia, Ghana, Guinea, Liberia, Mali, Nigeria, Senegal and Sierra Leone).
Volume 5 - Lesotho, South Africa, Swaziland
While being the worlds most rapidly growing market for mobile telephony and also home to the fastest growing fixed telephony markets in the world, Africa still has some of the world’s lowest penetration rates. Foreign investors are scrambling for positions in this very lucrative market as privatisation and liberalisation are progressively being introduced. Explosive growth in the mobile sector has meant that by early-2009 mobile users constituted around 90% of all African telephone subscribers. Other wireless solutions, such as CDMA and WiMAX, are also used to serve as substitutes for inadequate fixed-line infrastructure. A surge in demand for Internet access and broadband capabilities is expected to drive these developments further in the coming years. Several international submarine fibre cables scheduled to go live in 2009 will deliver the necessary bandwidth to Africa and bring down costs. Overall, the continent's telecoms future looks very promising and offers great opportunities to service providers, equipment vendors and investors.
The continent's mobile market is consistently growing at around 50% every year. Enormous further potential remains, with overall market penetration standing at little more than 30%, although the first African countries have recently broken the 100% barrier. Due to Africa's poor fixed-line infrastructure, the mobile networks are beginning to play an increasing role in broadband service provision as well, following the launch of third-generation (3G) services in a number of markets – a welcome new revenue stream in an almost entirely prepaid environment with low Average Revenue per User (ARPU) levels. Mobile ARPU has now bottomed in many African countries and is rising again with mobile data revenue growing at 45% in the continent's leading markets.
Mobile payment and banking services are revolutionising Africa's financial sector. More than 10% of Kenya's GDP now pass through the M-Pesa service, which has more users than there are bank account holders in the country.
At around 85% penetration, the spectacular subscriber growth curve of Algeria’s mobile market is beginning to flatten and attention is shifting to maintaining or improving ARPU, which has continued to decline under the intense competition between three networks. The three mobile network operators have entered the lucrative underdeveloped Internet sector by launching mobile data services and will be able to offer true broadband services under 3G licences to be issued shortly. This upcoming competition is accelerating developments in the fixed and fixed-wireless access sector, where ADSL2+ and SHDSL are being rolled out as well as EV-DO and WiMAX wireless broadband services and one of Africa’s first FttH networks. In parallel, the national and international fibre optic backbone is being upgraded to an IP-based NGN to support converged services and the growing traffic load. An opportunity to enter the market exists for investors in the upcoming privatisation of Algerie Telecom, for which 45 bidders have shown interest.
Angola is the second-largest producer of oil in sub-Saharan Africa, and the recent rise of oil prices has led to continuous GDP growth of around 20% for the past three years. With peace restored in 2002 after decades of civil war, foreign investment has multiplied and the mobile market has soared. Competition was also introduced in the underdeveloped fixed-line market and several 3G wireless technologies and WiMAX networks are being rolled out. Growth in the Internet sector is being held back by monopolistic pricing of international bandwidth, but this is expected to change with the arrival of new fibre optic submarine cables reaching the country from 2009. Privatisation of Angola Telecom, which is currently implementing a US$500 million national fibre optic backbone, and the licensing of a third mobile operator are also expected in the not too distant future.
A dispute about licence fees between the government of Benin and leading mobile network operators in the country in 2007 led to an only temporary dent in investor confidence. A newly licensed fifth mobile network successfully launched services in June 2008. Growth prospects are excellent, with penetration rates in all market sectors well below African averages. The Internet and broadband market is underdeveloped due to the poor national fixed-line infrastructure and high cost of international connectivity. A planned new international fibre link is expected to lead to significantly lower prices from 2008/09. However, for the market potential to fully unfold, several key policy decisions by the government are required.
Botswana is one of Africa’s wealthiest nations with a thriving economy mainly based on diamond mining and tourism. Mobile penetration has passed the 80% mark, almost three times the continent’s average. A nationwide fibre backbone network supports a wide range of services, and this landlocked country’s access to international bandwidth is being improved. Broadband services are available in the form of ADSL and various wireless technologies, including a city-wide WiMAX network in the capital Gaborone, launched in mid-2008. The government is in the process of privatising the national telco BTC which, through a new service-neutral licence, is now also enabled to compete in the mobile sector.
Following the majority-privatisation of Burkina Faso’s incumbent telco, Onatel, fresh investment and new technologies have accelerated the development of the national network infrastructure. The landlocked country will not benefit directly from the new submarine fibre optic cable systems reaching the region in 2008/09, but it will gain additional connectivity options through several of its neighbouring countries. Mobile telephony has experienced outstanding growth, with subscribers to the three digital networks now outnumbering fixed lines in the country by more than 15:1. With market penetration well below African averages, the growth potential in all market sectors is excellent.
As in most African countries, Cameroon’s mobile market has been booming since competition was introduced, while the fixed-line sector has been stagnant. Convergence between fixed and mobile, voice and data services is now set to change the market dramatically. The fixed-line incumbent, Camtel, is re-entering the mobile sector through a third national licence, and the existing mobile operators are establishing themselves as leading ISPs by introducing mobile data services and acquiring existing ISPs. The mobile operators are also among the bidders in the privatisation of a majority stake in Camtel with a view to providing converged services. The existing ISPs are combining their forces by merging and preparing to offer VoIP services through newly established wireless broadband networks.
Despite being Africa’s newest exporter of oil, Chad has one of the least developed telecommunications market in the world. Penetration rates in all market sectors – fixed, mobile and Internet – are well below African averages. The country lacks a national backbone infrastructure to support efficient broadband services. In order to raise the capital needed to fund development of the network, the government is intent on privatising the national telco, Sotel Tchad. The mobile sector is growing fast under competition between two foreign-owned networks. Sotel Tchad is rolling out a CDMA fixed-wireless system that enables it to potentially enter the lucrative mobile sector as well, and the mobile operators have launched mobile data services in a bid to participate in the underdeveloped Internet sector.
A peace agreement signed in 2007 gives hope for a normalisation of affairs in Cote d’Ivoire which was once the economic powerhouse of the region. The economic turnaround is supported by offshore oil and gas production which has now replaced cocoa as the country’s main income earner. However, most segments of the telecommunications market have continued to flourish during the crisis which started in 1999. The recent aggressive launch of a third and a fourth GSM network has accelerated the already fast growth of the mobile sector where market penetration is above the African average. Cote d’Ivoire has a relatively well developed infrastructure that supports ADSL broadband services with speeds of up to 8Mb/s. An auction of WiMAX spectrum is expected in the near future, while the first commercial service using this technology is already available. At least two of the new international fibre links planned for the region will have landing points in Cote d’Ivoire, creating competition with the existing SAT-3/WASC cable.
The Democratic Republic of Congo is a mineral-rich country that is recovering from civil strife and many years of pillage by its former leaders, which has accounted for the low level of development of its telecommunications and other infrastructure. While there has been little success with revitalising the fixed-line network infrastructure, the mobile networks have experienced strong growth and provide a replacement for fixed telephony and public payphones. Following the launch of mobile data services, they are also set to become major players in the underdeveloped Internet and broadband sector. Overall, market penetration is still well below the African average, leaving enormous potential for future growth.
The licensing of Egypt’s second fixed network operator has been postponed by at least a year to 2009 as a result of the global financial crisis, but the process has received strong interest from international bidders. The incumbent’s fixed network rollout has slowed, but take-up of ADSL broadband services continues unabated. There will be a shift towards wireless technologies, following the first successful WiMAX deployments in the country. In addition, all three mobile networks have now launched 3G services and are set to become dominant players in the Internet and broadband market as well. An increasing demand for bandwidth has led to the development of several additional submarine fibre optic cable systems to go online from 2009. With mobile and broadband tariffs already among the lowest on the continent, operators will seek to streamline their operations and distinguish themselves from the competition by quality of service and introducing new services.
Ethiopia still practices a monopoly in almost all areas of its telecoms sector. Market penetrationremains very low, but major efforts to roll out a national fibre backbone and wireless access networks have resulted in an acceleration of growth in all market segments. Further massive investments into fixed, mobile and Internet services, totalling US$4 billion, are planned for the five years to 2012. The government is intent on eventually privatising the national operator, ETC, and introducing competition in mobile and Internet services.
Following the introduction of competition between three service providers in Gabon, this relatively small and wealthy African nation has achieved one of the highest mobile market penetration rates on the continent, but its fixed-line and Internet sectors remain underdeveloped due to a lack of competition and the resulting high prices. The recently completed privatisation of Gabon Telecom may bring new impetus to the market if coupled with further market liberalisation.
Gambia has a relatively well developed national backbone network, but fixed-line penetration has remained low at around 3%, which in turn has hindered Internet usage. The introduction of wireless systems is beginning to accelerate developments in both of these market sectors. ADSL broadband services have been available in the country since 2006. Gambia is set to get its first own international fibre landing point which will eliminate the country’s dependence on neighbouring Senegal for international bandwidth. Mobile penetration is well above the African average and is expected to be driven further by the recent launch of a third network and the licensing of a fourth. The recent privatisation of fixed-line incumbent, Gamtel, and the new Telecommunications Bill, including new guidelines on VoIP, are expected to lead to new opportunities for additional market players.
Ghana led the way in telecommunications liberalisation and deregulation in Africa when it privatised Ghana Telecom as early as 1996. Following the exit of the investor in 2007, the company is currently being re-privatised. Similarly, the second national operator, Westel, was re-privatised in 2007. An IPO is expected from both companies in the near future. The highly competitive bidding for both companies (which also hold mobile licences) indicates the huge potential that is seen in the market despite the already intense competition between four operating mobile networks. A sixth mobile licence was issued in mid-2008. The new submarine fibre optic cables set to reach the country in 2009 will create competition with the current monopoly provider of international bandwidth and support the ongoing convergence of technologies and services. Other key developments that will drive the market going forward are the expected full liberalisation of VoIP telephony and allocation of WiMAX spectrum.
Guinea has vast mineral resources and is yet one of the poorest countries in the world. Penetration rates in its telecommunications and Internet market are well below African averages. The mobile sector now has five players competing for customers and is showing very healthy growth, while the fixed-line and Internet markets are virtually untapped. A new strategic investor may soon be sought for the incumbent telco, Sotelgui. The recent entry of two world-class international operators, MTN and Orange, with investments of hundreds of millions of US$, is expected to drive the market forward through convergence between fixed and mobile, voice and data services. The planned arrival of two international submarine cable systems to the country’s shores in 2008/09 promises to bring fibre-based bandwidth to Guinea for the first time which should help to lower prices and stimulate the market.
Despite the civil unrest which cast a shadow on Kenya at the beginning of 2008, the fundamental transformation of its telecoms market continues. A consortium lead by France Telecom acquired a 51% stake in the national telco, Tekom Kenya. The IPO of the country’s leading mobile operator, Safaricom, went ahead very successfully in April, which is an encouraging sign for Telkom’s planned IPO. A new, simplified licensing regime designed to increase competition was introduced mid-year. Several competing wireless broadband networks and national fibre backbones are being rolled out, and several international submarine fibre optic cables are expected to launch from 2009. This will bring bandwidth prices down and open the Internet up to the mass market. The country’s GSM mobile market finally moved beyond a duopoly at the end of 2008 when Econet and Telkom Kenya launched services as the third and fourth players. Convergence is ever-present in this dynamic and fast growing market with voice, data and video/broadband TV (triple play) services, the introduction of 3G mobile services and mobile banking empowering the largely un-banked population.
Telecommunications in Lesotho has undergone transformation from a state-owned monopoly to a privatised national operator, with competition in the mobile sub-sector between two networks, Vodacom and Econet. At around 25%, mobile market penetration is still below the African average. The use of wireless technology and fixed-mobile convergence has led to an accelerated increase of teledensity. Various forms of broadband Internet access are available. Although landlocked, Lesotho is set to benefit from the greater choice of international bandwidth sources that the arrival of several submarine fibre optic cables to the African east coast will bring in 2009.
Five years into peace, following more than a decade of civil war which destroyed much of its infrastructure, Liberia became a prime example of an almost entirely wireless telecommunications market. Four mobile operators are competing for customers while the virtually non-operational fixed-line incumbent is rolling out a wireless CDMA system with a view to possibly also entering the mobile market as a fifth player. Internet services are available from a number of wireless ISPs and the mobile networks using GPRS, EDGE and WiMAX technology. Despite the expensive operating environment due to the lack of basic infrastructure in the country, competition has led to some of the lowest call prices in Africa. However, penetration rates are still well below African averages in all market segments. Without even a functioning satellite earth station, the country will particularly benefit from the arrival of a new international submarine fibre link in 2009.
Libya is emerging from almost two decades of economic isolation, which contributed to the stagnation of its oil industry, the mainstay of its economy, and invariably its telecoms sector. Despite having an old style monopoly player for the provision of posts and telecom services, the country’s telecom network is superior to those in most other African countries. The mobile sub-sector remained underdeveloped until the introduction of a second GSM network in 2004 which sent market penetration skyrocketing from one of the lowest in Africa to one of the highest within only two years. 3G mobile services have been launched and massive investments are being made into a next-generation national fibre optic backbone network, the expansion of ADSL and WiMAX broadband services, and new international fibre connections. Investments into telecommunications infrastructure totalling US$10 billion have been earmarked for the 15 years to 2020.
Madagascar’s new private owners of incumbent telco, Telma, have managed to more than double the number of fixed-line customers within two years following years of stagnation, and to reverse the decline in fixed-line revenues through the introduction of attractive prepaid services. They have also entered the mobile market successfully as the country’s third player. Penetration rates in both sectors are still well below African averages, 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 this telecoms market, but plans to exploit and export crude oil and natural gas reserves may deliver a boost to the economy.
Malawi’s telecom sector is undergoing a small revolution following the privatisation of the national telco, MTL. Copper and fixed-wireless lines are being rolled out at an unprecedented pace, and a national fibre backbone is being implemented. The country’s electricity utility is also laying fibre and leasing capacity to telcos. A second national operator was licensed in May 2007 and a third mobile network in 2008, with a fourth expected soon. Penetration rates are still well below African averages in both market segments, leaving ample future growth potential. Several ISPs are rolling out wireless broadband networks and mobile data services have been launched. The underdeveloped Internet sector will receive a boost from the arrival of fibre-based international bandwidth in 2009 or 2010, paired with the planned liberalisation of VoIP Internet telephony.
Home to one of the world’s most isolated cities, the fabled Timbuktu, and a generally challenging geography for the provision of telecom services, penetration rates in Mali are still below African averages in all market segments, including mobile. France Telecom was extremely successful when it entered the market as the second player in 2003 and quickly amassed more than 80% market share. With privatisation of the incumbent telco Sotelma planned for 2008, its mobile subsidiary Malitel has made great efforts to improve its coverage and services, which has lead to annual growth in excess of 130%. The government is planning to license a third mobile operator. The introduction of ADSL, WiMAX and mobile data services has started to accelerate growth in the Internet and broadband market. Like Burkina Faso, Mali is landlocked, but it will gain additional connectivity options through several of its neighbouring countries from the arrival of the new international fibre systems to the region in 2008/09.
The island nation of Mauritius sports some of the best telecommunications 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 2004, the world’s first nationwide WiMAX wireless broadband network in 2005, and one of Africa’s first broadband TV services in 2006. Mauritius is actively pursuing a policy to make telecoms 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. 2008 saw the rollout of competitive national fibre backbone networks and one of Africa’s first FttH deployments.
Morocco is one of the most advanced telecommunications markets in Africa and often seen as a role model for future developments in other parts of the continent. It features a majority-privatised, highly profitable incumbent telco, three fixed and mobile network operators, as well as the highest penetration and some of the lowest prices on the continent for broadband Internet access. 2007 saw the introduction of 3G mobile broadband services, and within 18 months this sub-sector had taken almost a quarter of the broadband market. The boundaries between fixed and mobile are beginning to disappear as technologies and services converge. Innovative new services have been introduced such as the first commercial IPTV service on the continent. To accommodate the increasing amount of voice and Internet traffic, international connectivity and fibre optic national backbone networks are being expanded, and WiMAX is being rolled as the next-generation access technology.
Sixteen 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 following the introduction of competition in 2003, but market penetration is still well below the African average. The government is intent on introducing competition to the fixed-line sector as well. Internet usage has increased in recent years following the introduction of various kinds of broadband services, and the mobile operators have entered this market segment with the launch of mobile data services. Further improvements can be expected from the ongoing rollout of 3G mobile services and a national fibre backbone network as well as the arrival of the first international submarine fibre optic cable to the country’s shores in 2009.
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. Both operators have launched 3G services and are entering the Internet and broadband market. 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 wireless broadband services are boosting Internet connectivity and will bring additional competition to the voice market once VoIP is deregulated. With an extensive national fibre optic backbone in place and international submarine fibre optic cables scheduled to reach the country in 2010, Namibia is well positioned to remain one of the most developed telecoms markets in Africa.
Nigeria overtook South Africa in early 2008 to become the continent’s largest telecom market with over 44 million mobile subscribers. New customers are currently signing up at a rate of almost one per second, and yet market penetration is still at relatively low levels. However, declining ARPU levels are forcing the operators to introduce new services and transform themselves into providers of converged fixed, mobile and broadband services. Far reaching liberalisation has led to hundreds of companies providing virtually all kinds of telecom and value-added services. The mobile sector has been joined by a number of additional players under a new unified licensing regime which is expected to also boost the country’s underdeveloped Internet and broadband sector. A fifth GSM operator was licensed in 2007 and 3G mobile services launched in early 2008. The new market entrants are receiving hundreds of millions of US$ in investments from local and foreign investors while Nitel, the recently privatised but still ailing incumbent telco, is looking for an additional strategic investor and new business models to turn the company around.
In Rwanda, the aftermath of the 1994 genocide and a monopolistic market structure until 2006 have weighed on the telecoms sector, but the nation is now catching up with other markets in Africa. The privatised incumbent telco is more innovative than most of its African counterparts in the provision of market-driven, affordable services, and it is competing in the mobile sector as well. Rwanda has one of the most developed national fibre infrastructures in the region and is preparing to connect to the new high-bandwidth submarine cables being built along the east cost of Africa.
Senegal has developed one of Africa’s most extensive and modern telecommunications infrastructures. The national telco, Sonatel, is partially privatised and highly profitable. A second national operator and third mobile operator licensed in 2007 is expected to launch services in 2008. Since the introduction of competition in the mobile sector in 1999, the number of mobile subscribers has risen dramatically, now representing around 95% of all telephone lines. Senegal was one of the first African countries to introduce ADSL broadband service in 2003 which has almost completely replaced dial-up as the Internet access method of choice. The country has been a successful reseller of international bandwidth from its SAT-3/WASC landing station to other countries and will be able to expand this business with the new international fibre links, the first of which has already reached its shores. Overall penetration in all sectors of Senegal’s telecom market is still low, resulting in attractive opportunities for new entrants.
Following more than a decade of civil war, Sierra Leone has enjoyed peace and stability since 2002. The country’s traditional telecommunications infrastructure has suffered damage and neglect, but the mobile sector has experienced excellent growth with now five GSM networks competing for customers and up to three more expected to launch shortly. However, recent government intervention in some regulatory matters has created a degree of uncertainty about market growth in the medium term. At the same time, rapidly declining ARPU levels are forcing the operators to improve their services and find new revenue streams, such as Internet access via mobile data services. In this area they are competing with a large number of wireless broadband network operators that have emerged as providers of converged Internet and VoIP telephony services. Overall, penetration rates in all market segments are still well below African averages, leaving ample potential for future growth.
South Africa is the economic powerhouse and leading telecommunications market of the African continent. At around 100% market penetration, the country’s mobile operators are forced to find innovative ways of distinguishing themselves from the competition in order to gain and retain customers, save costs and develop new revenue streams. Their entry into the Internet sector with 3G/HSPA mobile broadband services, combined with media and entertainment content is one way of achieving this. Another is the rollout of fibre optic national backbone networks in competition with other infrastructure providers. The arrival of new international submarine fibre optic cables to the region in 2009 will bring down the cost of international bandwidth dramatically. The small kingdoms of Lesotho and Swaziland, although landlocked and largely dependent on their powerful neighbour, are expected to benefit from these developments as well.
Sudan, the third largest oil producer in sub-Saharan Africa and one of the biggest countries on the continent, is regarded as one of Africa’s most lucrative telecom markets, receiving hundreds of millions of dollars in foreign investment per year. The privatisation of its incumbent mobile network fetched a record price. Enormous further potential exists since penetration rates are still relatively low in all market segments. Two fixed and three mobile networks are competing for customers, rolling out broadband and next-generation services. Under a recent peace agreement, the oil-rich south of the country, which has been beyond the central government’s control and deprived of development, is establishing its own independent telecommunications regime, creating new opportunities for service providers and equipment suppliers.
The telecoms sector in Swaziland features an old-style posts and telecom monopoly operator for fixed services and one of the last mobile monopolies on the continent as well. Nevertheless, fixed and mobile penetration is relatively high compared with other countries in the region. The level of Internet usage, only about average in the region, has been held back by a lack of attractive broadband offerings, caused by the limited extent of the fixed-line network and limited options for affordable international bandwidth. The planned unbundling and eventual privatisation of the incumbent and the introduction of more competition would enable the market to live up to its relative GDP strength
Tanzania has a fully competitive telecom sector with two fixed-line operators and six operational mobile networks, with four additional players licensed under a new converged regulatory regime. Growing at 50% per annum, the mobile market passed the ten million subscriber mark in 2008 with four dominating major operators. At a penetration level of only around 30%, growth is set to continue. The liberalisation of VoIP Internet telephony as well as the introduction of 3G mobile and other wireless broadband services is boosting the Internet sector, which has been hampered by the low level of development of the traditional fixed-line network.
Tunisia has one of the most developed telecommunications infrastructures in the relatively affluent 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 fibre optic 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 incumbent telco has been partially privatised, and the licensing of a second fixed-line operator is planned for 2009.
As early as 1999, Uganda became the first country in Africa where the number of mobile subscribers passed the number of fixed-line users, and the ratio is now around 40:1. The entry of a second national operator and five mobile networks has revolutionised the telecoms sector. The market is consistently growing at between 50% and 100% per annum, while penetration at around 20% is still below the African average. The recent introduction of 3G services will enable the mobile operators to play a larger role in Internet service provision. A new simplified licensing regime has significantly reduced barriers to market entry and increased competition.
Zambia has three competing mobile networks and a monopoly fixed-line operator, Zamtel. While the mobile sector has experienced excellent growth, market penetration is still below 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, which will also position them as competitors in the telecoms sector once VoIP is fully liberalised – a key component in Zambia’s new ICT Policy. A national fibre backbone is under development, including a connection to one of the several international submarine fibre optic cables that will reach the African east coast in 2010, which should help to reduce the cost of international bandwidth for this landlocked country.
Zimbabwe’s decade-old deep political and economic crisis has not spared the country’s telecom industry, with a dwindling local currency, hyperinflation 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, but an immense pent-up demand is now being addressed with major infrastructure upgrades, including the introduction of 3G mobile and other wireless broadband services. Zimbabwe’s backbone network is being upgraded, including fibre optic links which will also improve Internet connectivity. A power-sharing agreement reached on the political level following violent elections in March 2008 is seen as a first step towards normalisation.
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