Democratic Republic of Congo - Telecoms, Mobile and Broadband

Executive summary

International fibre connectivity to boost broadband market

This annual 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;
• Average Revenue per User (ARPU).

Following a 30-year dictatorship between 1967 and 1997, the Democratic Republic of Congo (formerly Zaire) has been through two 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. An uncertain legal framework, corruption, and a lack of transparency in government policy are continuing long-term problems. The country has been hit hard by the global economic crisis, but GDP growth is expected at between 6% and 8% in the coming years.

As a result of the political instability since the mid-1990s, the national telecom system is one of the least developed in the region. Rural areas, where almost 70% of the population resides, are virtually devoid of telephone or Internet service. The national operator, OCPT theoretically has a monopoly on the sector under 1970 legislation, but it has been unable to provide a modern telecom network and unsuccessful in finding major investors for privatisation. 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 has also caused interference and compatibility problems, and there is limited available spectrum due to poor spectrum management. As a result, the mobile sector has consolidated and now has four major players: Vodacom Congo, Bharti Airtel (formerly Zain), Millicom (Tigo) and Congo Chine Telecom (CCT) in which OCPT holds 49%. The vast majority of subscribers are on prepaid plans.

Development of the Internet market has been held back by the poorly developed national and international infrastructure. The mobile operators are beginning to play a significant role in this sector as well, following the launch of mobile data services. However, no 3G mobile systems have yet been launched apart from a CDMA-EV-DO system in Kinshasa, which means that services offering true broadband speed are currently only available through relatively small wireless networks using other technologies, mainly WiMAX.

With support from China, OCPT is now finally rolling out a fibre optic national backbone that will ultimately also provide access to fibre optic submarine cables for low-cost, high-quality international bandwidth.

Market highlights:

• Change of ownership in leading mobile networks;
• National fibre backbone rollout and rehabilitation of fixed-line network;
• Access to international fibre bandwidth expected in 2012;
• WiMAX is the predominant broadband access technology;
• Profiles of major players in all market sectors.

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

(Source: BuddeComm based on various sources)

Companies covered in this report:

• Vodacom Congo
• Bharti Airtel (Zain)
• Millicom (Tigo)
• Congo Chine Telecom (CCT)
• Office Congolais des Postes et des Télécommunications (OCPT)
• Tatem Telecom
• Gecamines
• AfriTel (Starcel)
• 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

Table of Contents

• 1. Executive summary
• 2. Key statistics
  • 2.1 Country overview
• 3. Telecommunications market
  • 3.1 Overview of the DRC’s telecom market
• 4. Regulatory environment
  • 4.1 Overview
  • 4.2 Regulatory authority
    • 4.2.1 ARPTC
  • 4.3 Competition in the telecom sector
  • 4.4 Interconnection
  • 4.5 Voice over Internet Protocol (VoIP)
• 5. Fixed-line operators in the DRC
  • 5.1 Fixed-line statistics
  • 5.2 Office Congolais des Postes et des Télécommunications
    • 5.2.1 National backbone
    • 5.2.2 Privatisation
  • 5.3 Tatem Telecom
  • 5.4 Other operators
• 6. International infrastructure
  • 6.1 Satellite
  • 6.2 Submarine fibre
  • 6.3 Terrestrial fibre
    • 6.3.1 The Central African Backbone (CAB)
• 7. Broadband and Internet market
  • 7.1 Overview
    • 7.1.1 Internet user statistics
  • 7.2 ISP market
    • 7.2.1 Africanus.net
    • 7.2.2 InterConnect, Vodanet
    • 7.2.3 Microcom
    • 7.2.4 Cielux Telecom
    • 7.2.5 Global Broadband Solution (GBS)
    • 7.2.6 Other ISPs
  • 7.3 Internet cafes
• 8. Mobile communications
  • 8.1 Overview of the DRC’s mobile market
    • 8.1.1 Mobile statistics
  • 8.2 Regulatory issues
    • 8.2.1 GSM licence conditions, fees and taxes
  • 8.3 Major mobile operators
    • 8.3.1 Vodacom Congo
    • 8.3.2 Bharti Airtel (formerly Zain, Celtel)
    • 8.3.3 Tigo (Millicom)
    • 8.3.4 CCT
  • 8.4 Mobile data services
    • 8.4.1 Overview
    • 8.4.2 Mobile banking
• 9. Related reports

• Table 1 – Country statistics Democratic Republic of Congo – 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 telephone lines and teledensity – 1999 - 2012
• Table 8 – Internet users and penetration rate – 1999 - 2012
• Table 9 – Mobile subscribers and penetration rate – 1999 - 2012
• Table 10 – Vodacom Congo subscribers – 2002 - 2011
• Table 11 – Vodacom Congo ARPU – 2003 - 2011
• Table 12 – Zain DRC ARPU – 2002 - 2009

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