Broadband market set to grow with fibre and 3G/4G deployments
This report provides a comprehensive overview of trends and developments in DRC’s telecommunications market. Subjects covered include:
- Key statistics;
- Market and industry overviews;
- Government policies affecting the telecoms industry;
- Market liberalisation and regulatory issues;
- Major players (fixed, mobile and broadband);
- Telecoms operators – privatisation, acquisitions, new licences;
- Infrastructure development;
- Convergence (voice/data, fixed/wireless/mobile);
- Internet and broadband development and growth;
- Mobile data services, including 3G/4G;
- Mobile banking;
- Average Revenue per User (ARPU).
Following a 30-year dictatorship between 1967 and 1997, the Democratic Republic of Congo (formerly Zaire) has been through several wars and is still seeing violent conflicts in the eastern part of the country. The economy of this third largest country in Africa relies heavily on mining. However, much economic activity occurs in the informal sector and is not reflected in GDP data. The global economic crisis reduced GDP growth to around 3% in 2009, but it returned to 7% in 2010-12 and is expected to remain stable at that level in the coming years.
As a result of the country's past, the national telecom system is one of the least developed in the region. The national operator, SCPT theoretically has monopoly rights under 1970 legislation. However, recognising the need for telecommunications infrastructure, the government is only loosely regulating the sector.
Mobile networks have taken over as the providers of basic telecom services. By 2001, some 16 private operators had been granted mobile telephony licences and the subscriber base was growing at triple digit rates per year. However, the proliferation of networks also caused frequency spectrum shortages, interference and compatibility problems. As a result, the mobile sector has consolidated and now has five major players.
Development of the DRC's internet and broadband market has been held back by the poorly developed national and international infrastructure. However, the country was finally connected to low-cost, high-quality international bandwidth through the WACS submarine fibre optic cable in 2013, and SCPT is rolling out a fibre optic national backbone network with support from China. An alternative terrestrial international fibre connection exists via neighbouring countries. Broadband access is provided by 3G mobile services and wireless networks using WiMAX and EV-DO technology. The country’s first commercial LTE networks are imminent.
- Connection to WACS international fibre optic cable finally completed;
- National fibre backbone rollout continues;
- Fifth mobile network thrives despite denial of interconnection;
- 3.5G mobile broadband services introduced;
- First LTE network set to launch later in 2014 following government consultations with wireless operators;
- Airtel Congo and MTN Congo fined for mobile network quality and availability failures;
- Africell takes Vodacom, Tigo and Airtel to court over their refusal to interconnect networks;
- Yozma Timeturns pays initial licence fee instalment, proposes mobile services launch later in 2014;
- Vodacom reaches dispute settlement with its partner CWN, paving the way for continued investment in the country;
- Airtel increases investment undertaking for DRC to $550 million.
Estimated market penetration rates in the DRC’s telecoms sector – end 2013
(Source: BuddeComm based on various sources)
Companies covered in this report:
Vodacom Congo, Bharti Airtel (Zain, Celtel), Millicom (Tigo), Congo Chine Telecom (CCT, France Telecom Orange), Africell (Lintel), Société Congolais des Postes et des Télécommunications (SCPT, OCPT), Tatem Telecom, Gecamines, AfriTel (Starcel), Standard Telecom, Telecel International, Africanus.net, Interconnect (Vodanet), Microcom, Cielux Telecom, Global Broadband Solution (GBS), Afrinet, Congo Korea Telecom, Geolink, ICP Net, Orioncom, Paconet (Pan African Communication Network), RagaNet, Roffe Hi-Tech, Sattel, Societe Internet Congolaise (SIC), Sogetel, Liquid Telecom, O3b Networks, Smile Telecom, Alcatel-Lucent, Ericsson, Huawei Technologies, ZTE.