Executive summary
Benin, the dwarf that became an international fibre hub
This annual report provides a comprehensive overview of trends and developments in Benin’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;
- Telecoms operators – privatisation, acquisitions, new licences;
- Major players (fixed, mobile and broadband);
- Infrastructure development;
- Mobile voice and data markets;
- Average Revenue per User;
- Internet and broadband development and pricing;
- Convergence (voice/data, fixed/wireless/mobile).
The global economic crisis led to a downturn in Benin’s economy and GDP growth has remained weak at around 3% in 2010 and 2011. It is expected to return to levels between 4 and 5% from 2012 onwards. Telecom service providers in the country have reacted to the downturn with price cuts and the introduction of innovative new services.
Fixed-line monopolist Benin Telecoms is expanding its CDMA2000 fixed-wireless and its ADSL broadband service and has launched the country’s first WiMAX wireless broadband network. In parallel it has been extending its national fibre backbone and international fibre connections, enabling it to act as a national and regional bandwidth hub. To fully exploit these assets, the company will depend on capital and management from a strategic international investor. Its privatisation has been planned since 2006 but has so far not come to fruition.
Benin Telecoms’ mobile unit Libercom is competing with South Africa’s MTN, Etisalat’s Moov, Globacom’s Glo Mobile, and Bell Benin which is operating under the name BBCom. The increased level of competition has taken market penetration closer to the African average of around 50%.
Although the Internet has been available in Benin since 1995, it is used by only a small percentage of the population. Development of the sector has been hampered by the poor fixed-line network and the high cost of international connectivity. Mobile data services are available, but 3G mobile broadband services have not yet been introduced. The arrival of a second international submarine fibre optic cable to compete with the SAT-3/WASC cable from 2011 is expected to lead to drastic reductions in the cost of international bandwidth.
This report provides an overview of the telecommunications sector in Benin, profiles of major players in all market sectors, key statistics, analysis and estimates to end-2012 of the country’s mobile, fixed-line and Internet markets.
Market highlights:
- International fibre bandwidth resale to neighbouring countries;
- Market analysis and outlook to 2016;
- Estimates for fixed-line, mobile and Internet markets to end-2012;
- Profiles of major players in all market sectors;
- National fibre rollout;
- ADSL, WiMAX and mobile data pricing trends;
- Mobile ARPU trend.
Estimated market penetration rates in Benin’s telecoms sector – end-2011
Market
| Penetration rate
|
|---|
Mobile
| 71%
|
Fixed
| 1.4%
|
Internet
| 3.5%
|
(Source: BuddeComm based on various sources)
Companies covered in this report:
MTN, Moov (Telecel), Libercom, BBCom (Bell Benin), Glo Mobile (Globacom), Benin Telecoms (OPT), Kanakoo (BeninNet), Isocel, EIT, FirstNet, Arts Bobo, Sobiex Informatique, Global Trading Agency, Afripa Telecom, Thuraya, Nitel, Suburban Telecom, CEB.
