Angola - Telecoms, Mobile, Broadband and Forecasts

Executive summary

Market restructuring opens up new opportunities

This annual report provides a comprehensive overview of trends and developments in Angola’s telecommunications market. Subjects covered include:

• Key statistics;
• Market and industry overviews;
• The impact of the global economic crisis;
• Government policies affecting the telecoms industry;
• Market liberalisation and regulatory issues;
• Major players (fixed, mobile and broadband);
• Telecoms operators – privatisation, restructuring, acquisitions, new licences;
• Infrastructure development;
• International submarine fibre optic cables;
• National fibre backbone network;
• Mobile voice and data markets;
• Internet and broadband development and pricing, including 3G mobile;
• Convergence (voice/data, fixed/wireless/mobile);
• Mobile market forecasts for 2013 and 2016.

With peace restored in 2002 after decades of civil war, foreign investment in Angola has multiplied and the mobile market has soared despite a continued duopoly between Unitel and Angola Telecom’s Movicel. The country is the second-largest oil producer in sub-Saharan Africa, and the rise of oil prices has led to double-digit GDP growth in recent years. However, following a slowdown in 2009 and 2010, the economy is forecast to grow more in line with the African average going forward, at around 6% p.a.

Competition was also introduced in the underdeveloped fixed-line market, but launch delays and consolidation among the newly licensed players have led to a duopoly in this sector as well between Angola Telecom and Mercury Telecom. The long awaited start of Mundo Startel’s fixed-wireless operations in 2009 has created a third force in this market.

The mobile network operators have launched 3G services and are shaking up the broadband market where fixed-wireless operators and ISPs with CDMA and WiMAX-based networks have been competing with Angola Telecom’s ADSL and cable modem services. However, prices are still beyond the reach of most Angolans due to the high cost of international bandwidth as a result of Angola Telecom’s monopolisation of the SAT-3/WASC international fibre optic submarine cable. The recent landing of new international fibre systems in the country is now expected to change this, coupled with a US$500 million national fibre backbone network rollout.

Angola Telecom is going through a restructuring process with the help of international consultants. A majority stake in its mobile unit, Movicel has been sold to private investors and a migration from CDMA to GSM/UMTS technology has been announced. The creation of Infrasat as an independent satellite business unit and the Angola Cable consortium for international fibre connections are additional steps towards greater liberalisation of the country’s telecom market, improved efficiency of the national telco and its eventual privatisation. A third mobile operator licence has also been discussed.

Market highlights:

• Second international submarine fibre optic cable lands;
• Coordinated trans-sector national fibre rollout;
• Angola Telecom restructuring;
• Recovery from global economic crisis;
• Estimates for mobile, fixed-line and internet market for 2012;
• Forecasts for mobile market to 2013 and 2016;
• Profiles of major players in all market sectors.

Estimated market penetration rates in Angola’s telecoms sector – end-2012

(Source: BuddeComm based on various sources)

Companies covered in this report:

• Angola Telecom;
• Movicel/MoviNet;
• Unitel;
• Mercury Telecom (MS Telecom);
• Telesel;
• Nexus;
• Mundo Startel;
• Wezacom;
• Main One;
• Angola Cable;
• Angola Communication Systems (ACS);
• Snet;
• Multitel;
• Maxnet;
• TV Cabo;
• Portugal Telecom.

Table of Contents

• 1. Executive summary
• 2. Key statistics
  • 2.1 Country overview
• 3. Telecommunications market
  • 3.1 Market analysis 2012
• 4. Regulatory environment
  • 4.1 Basic Telecommunications Law 2001
  • 4.2 Regulatory authority
    • 4.2.1 Angola Institute of Communications (INACOM)
  • 4.3 Universal Service Fund
  • 4.4 Interconnection
  • 4.5 Telecom sector liberalisation in Angola
  • 4.6 Foreign ownership
• 5. Fixed network operators in Angola
  • 5.1 Fixed-line statistics
  • 5.2 Angola Telecom (AT)
    • 5.2.1 Privatisation
    • 5.2.2 Fixed-line infrastructure
    • 5.2.3 Wireless local loop
    • 5.2.4 National fibre backbone network
    • 5.2.5 Angosat
    • 5.2.6 Infrasat
  • 5.3 Mercury Telecom (MS Telcom)
    • 5.3.1 National backbone network
  • 5.4 Telesel/Nexus
  • 5.5 Mundo Startel
  • 5.6 Wezacom
• 6. International infrastructure
  • 6.1 Satellite
  • 6.2 Submarine cable networks
    • 6.2.1 SAT-3/WASC
    • 6.2.2 New submarine fibre projects
• 7. Internet market
  • 7.1 A difficult beginning in war times
  • 7.2 Internet statistics
  • 7.3 Public telecentres and cybercafes
  • 7.4 Internet Exchange Point (IXP)
  • 7.5 Angola’s ISP market
    • 7.5.1 Nexus
    • 7.5.2 Angola Communication Systems (ACS)
    • 7.5.3 MoviNet
    • 7.5.4 Snet
    • 7.5.5 Multitel
    • 7.5.6 Maxnet
• 8. Broadband market
  • 8.1 ADSL
  • 8.2 Wireless broadband
• 9. Convergence
  • 9.1 Voice over Internet Protocol (VoIP) telephony
  • 9.2 Broadband over Cable TV (CATV)
  • 9.3 Triple play
  • 9.4 E-government
• 10. Mobile communications
  • 10.1 Overview of Angola’s mobile market
    • 10.1.1 Mobile statistics
  • 10.2 Major mobile operators
    • 10.2.1 Movicel (Angola Telecom)
    • 10.2.2 Unitel
  • 10.3 Third generation (3G) mobile data services
  • 10.4 Satellite mobile
• 11. Forecasts
  • 11.1 Forecast mobile market – 2013; 2016
  • 11.2 Notes on scenario forecasts
• 12. Related reports

• Table 1 – Country statistics Angola – 2012
• Table 2 – Fixed-line network statistics – 2012
• Table 3 – Internet provider statistics – 2012
• Table 4 – Internet user statistics – 2012
• Table 5 – Mobile statistics – 2012
• Table 6 – National telecommunications authority
• Table 7 – Fixed lines in service and teledensity – 2000 - 2012
• Table 8 – Internet users and penetration rate – 1999 - 2012
• Table 9 – Mobile subscribers and penetration rate – 1999 - 2012
• Table 10 – Unitel 3G broadband pricing – 2011
• Table 11 – Forecast mobile subscribers – 2013; 2016

• Chart 1 – Mobile subscribers in Angola – 2002 - 2012