Botswana - Telecoms, Mobile and Broadband

Executive summary

One of the most penetrated mobile markets in Africa

This annual report provides a comprehensive overview of trends and developments in Botswana’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;
• Internet and broadband development and growth;
• Mobile data services, including 3G;
• Convergence (voice/data, fixed/wireless/mobile);
• Average Revenue per User.

Botswana is one of Africa’s wealthiest nations with a thriving economy mainly based on diamond mining and tourism which recovered quickly from a recession during the global financial crisis (GFC). Regulatory reform has turned the country into one of the most liberalised telecommunications markets in the region, including a service-neutral licensing regime which takes into account the increasing convergence of technologies and services.

Although at well over 100% Botswana has one of the highest mobile market penetration rates in Africa, the average revenue per user is also one of the highest on the continent. In a bid to generate new revenue streams and secure market share, the three mobile operators – Mascom Wireless (an affiliate of South Africa’s MTN), Orange Botswana and BeMobile (a subsidiary of fixed-line incumbent BTC) – have entered the underdeveloped broadband sector with different strategies including 3G mobile, WiMAX and bundling with fixed-line (ADSL) services. Here they are competing with a large number of ISPs, some of which are rolling out their own wireless access infrastructure.

A nationwide fibre backbone supports a wide range of services, and the landlocked country's access to international bandwidth is being improved by a regional fibre backbone network and new submarine fibre optic cables off the continent’s east and west coasts.

The planned privatisation of BTC has been postponed in the wake of the global economic crisis but is expected to be resumed in the near future.

Market highlights:

• One of the highest levels of mobile and fixed-line penetration in Africa;
• GDP growth has rebounded to 6% following a recession in 2009;
• BTC privatisation planned;
• Profiles of major players in all market sectors;
• Different mobile operator strategies to tackle the broadband market.

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

(Source: BuddeComm based on various sources)

Companies covered in this report:

• Botswana Telecommunications Corporation (BTC);
• Mascom Wireless (MTN);
• Orange Botswana (Vista Cellular);
• BeMobile;
• Botsnet;
• MTN Businesss;
• InfoBotswana (IBIS);
• Broadband Botswana Internet (BBI);
• OPQ Net;
• Mega Internet;
• Global Broadband Solution (GBS);
• Tsagae Communications;
• Virtual Business Network Services (VBN);
• Bytes Technology;
• Fourth Dimension;
• Hi-Performance Systems;
• Microteck Enterprises;
• Tharinet;
• Netspread;
• First National Bank.

Table of Contents

• 1. Executive summary
• 2. Key statistics
  • 2.1 Country overview
• 3. Telecommunications market
  • 3.1 Overview of Botswana’s telecom market
• 4. Regulatory environment
  • 4.1 Background
  • 4.2 Regulatory authority
    • 4.2.1 Botswana Telecommunications Authority
  • 4.3 Universal Service and Access Strategy
  • 4.4 Interconnection and tariffs
  • 4.5 Telecom sector liberalisation in Botswana
    • 4.5.1 Regulatory reform 2006
    • 4.5.2 Service-neutral licences since 2007
• 5. Fixed network operator in Botswana
  • 5.1 Botswana Telecommunications Corporation (BTC)
    • 5.1.1 Financial results
    • 5.1.2 Privatisation
    • 5.1.3 Services
    • 5.1.4 Fixed-line statistics
    • 5.1.5 Fixed-line infrastructure
    • 5.1.6 Wireless Local Loop (WLL)
    • 5.1.7 Public payphones
    • 5.1.8 National backbone network
• 6. International infrastructure
  • 6.1 Submarine fibre
• 7. Internet market
  • 7.1 Overview
    • 7.1.1 Internet statistics
  • 7.2 Public internet access facilities
  • 7.3 Botswana’s ISP market
    • 7.3.1 Botsnet
    • 7.3.2 MTN Business (formerly Verizon, UUNet)
    • 7.3.3 InfoBotswana (IBIS)
    • 7.3.4 Broadband Botswana Internet (BBI)
    • 7.3.5 OPQ Net
    • 7.3.6 Mega Internet
    • 7.3.7 Global Broadband Solution (GBS)
    • 7.3.8 Tsagae Communications
    • 7.3.9 Virtual Business Network Services (VBN)
  • 7.4 Botswana Internet Exchange (BINX)
• 8. Broadband market
  • 8.1 ADSL
  • 8.2 Wireless broadband
  • 8.3 WiMAX
    • 8.3.1 Orange Livebox
    • 8.3.2 Netspread
• 9. Convergence
  • 9.1 VoIP telephony
  • 9.2 Next Generation Network (NGN)
  • 9.3 E-health, E-learning
• 10. Mobile communications
  • 10.1 Overview of Botswana’s mobile market
    • 10.1.1 Mobile statistics
  • 10.2 Regulatory issues
    • 10.2.1 Backbone infrastructure
    • 10.2.2 Airtime tax
    • 10.2.3 Registration of subscriber details
  • 10.3 Major mobile operators
    • 10.3.1 Mascom Wireless
    • 10.3.2 Orange Botswana (formerly Vista Cellular)
    • 10.3.3 BeMobile (BTC)
  • 10.4 Mobile data services
  • 10.5 Third generation (3G)
  • 10.6 Mobile banking
• 11. Related reports

• Table 1 – Country statistics Botswana – 2012
• Table 2 – Telephone 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 – BTC financial results – 2005 - 2010
• Table 8 – Fixed lines in service and teledensity – 2000 - 2012
• Table 9 – Internet users and penetration rate – 2000 - 2012
• Table 10 – Mobile subscribers and penetration rate – 1999 - 2012
• Table 11 – Mobile subscribers by operator and annual change – September 2010
• Table 12 – Mascom ARPU – 2005 - 2011

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

• Exhibit 1 – Map of Botswana