Chad - Telecoms, Mobile and Internet

Executive summary

One of the world’s most underdeveloped markets

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

• One of the most underdeveloped telecom markets in the world;
• The impact of the global economic crisis;
• Key statistics;
• Market and industry overviews;
• 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 (ARPU) trends;
• Internet and broadband development;
• Convergence (voice/data, fixed/wireless/mobile).
• Internet and broadband development;
• Mobile data services.

Despite being Africa’s latest exporter of oil, Chad has one of the least developed telecommunications markets in the world. Penetration rates in all market sectors – fixed, mobile and Internet – are well below African averages.

The mobile sector is growing fast under competition between two foreign-owned networks – Bharti Airtel (formerly Zain), and Millicom (Tigo). The national telco and fixed-line operator, Sotel Tchad (ST) was participating in another mobile network in partnership with Orascom Telecom until it ceased operations in 2004 over legal disputes between the shareholders.

ST is rolling out a CDMA2000 fixed-wireless system that enables it to potentially re-enter the mobile sector. The technology also holds the potential to provide broadband services with an upgrade to the EV-DO standard. Plans exist for privatisation of the company, but a time schedule has not yet been announced.

The mobile networks currently provide the only broadband-like services in the country apart from direct satellite access. Third generation mobile services have not yet been introduced.

Chad still lacks a national backbone infrastructure and international fibre access to support efficient broadband services. All long-distance connections, national and international, are currently made via satellite. However, the World Bank-funded Central African Backbone (CAB) project is set to finally bring fibre to the country in 2011.

Market highlights:

• Central African Backbone (CAB) and other fibre projects;
• Forecasts to end-2012 for mobile, fixed-line and Internet market.

Estimated market penetration rates in Chad’s telecoms sector – end-2011

(Source: BuddeComm based on various sources)

Companies covered in this report:

Sotel Tchad, TchadNet, Bharti Airtel (Zain), Millicom (Tigo), Tchad Mobile (Orascom).

Table of Contents

• 1. Executive summary
• 2. Key statistics
  • 2.1 Country overview
• 3. Telecommunications market
  • 3.1 Overview of Chad’s telecom market
  • 3.2 Regional benchmarking
• 4. Regulatory environment
  • 4.1 Telecommunications Act 1998
  • 4.2 Regulatory authority
    • 4.2.1 OTRT
• 5. Fixed-network operator in Chad
  • 5.1 Sotel Tchad
    • 5.1.1 Fixed-line statistics
    • 5.1.2 Network infrastructure
    • 5.1.3 CDMA2000 WLL
    • 5.1.4 National backbone network
• 6. International infrastructure
  • 6.1 Overview
  • 6.2 SAT-3/WASC submarine fibre
  • 6.3 The Central African Backbone (CAB)
  • 6.4 Other projects
• 7. Internet and broadband market
  • 7.1 Overview
    • 7.1.1 Internet statistics
  • 7.2 Voice over Internet Protocol (VoIP) telephony
• 8. Mobile communications
  • 8.1 Overview of Chad’s mobile market
    • 8.1.1 Mobile statistics
  • 8.2 Major mobile operators
    • 8.2.1 Airtel Chad (formerly Zain)
    • 8.2.2 Millicom Chad (Tigo)
    • 8.2.3 Tchad Mobile (defunct)
  • 8.3 Satellite mobile
• 9. Related reports

• Table 1 – Country statistics Chad – 2011
• Table 2 – Fixed and fixed-wireless network statistics – 2011
• Table 3 – Internet provider statistics – 2011
• Table 4 – Internet user statistics – 2011
• Table 5 – Mobile statistics – 2011
• Table 6 – National telecommunications authority
• Table 7 – Fixed and fixed-wireless lines in service and teledensity – 1999 - 2012
• Table 8 – International Internet bandwidth in Mb/s – 1999 - 2010
• Table 9 – Internet users and penetration rate – 1998 - 2012
• Table 11 – Mobile subscribers and penetration rate – 2000 - 2012
• Table 10 – Zain Chad subscribers – 2005 - 2010
• Table 11 – Zain Chad ARPU – 2002 - 2009
• Table 12 – Tigo Chad subscribers – 2008 - 2011
• Table 13 – Tigo Chad quarterly ARPU – 2009 - 2010
• Table 12 – Tchad Mobile (defunct) subscribers – 2001 - 2004

• Chart 1 – Mobile subscribers and penetration rate – 2002 - 2012

• Exhibit 1 – Map of Chad