Executive summary
One of the fastest growing markets in Africa
This annual report provides a comprehensive overview of trends and developments in Djibouti’s telecommunications market. Subjects covered include:
- Key statistics;
- Market and industry overviews;
- Government policies affecting the telecoms industry;
- Market liberalisation and regulatory issues;
- Telecoms operators – privatisation, acquisitions, new licences;
- Infrastructure development;
- Major players (fixed, mobile and broadband);
- Internet and broadband development and growth;
- Convergence (voice/data, fixed/wireless/mobile);
- Mobile voice and data markets.
Djibouti is one of the last countries in the world allowing its national telco, Djibouti Telecom (DT) a monopoly on all telecom services, including fixed lines, mobile, internet and broadband. The lack of competition has meant that the market has not lived up to its potential, although the country has a service-based economy consistently growing at 5 to 6% per year and is one of the best connected for fibre optic international internet bandwidth in the entire region, supplying transit services to neighbouring countries such as landlocked Ethiopia with a population of 90 million. Broadband services in Djibouti itself are still very expensive. Growth in the mobile and internet sector is now accelerating as DT is preparing to launch a third generation (3G) mobile network, but competition and foreign investment is needed to unleash the market's full potential. In preparation for this, DT itself is forging international alliances.
Market highlights:
- One of the fastest growing telecom markets in Africa;
- The best connected hub for internet bandwidth in the Horn of Africa region;
- Growth in the mobile and internet sector is accelerating ahead of 3G launch;
- Market liberalisation and foreign investment is needed to unleash the market's potential;
- Services-based economy with 5-6% annual GDP growth.
Estimated market penetration rates in Djibouti’s telecoms sector – end 2012
Market
| Penetration rate
|
|---|
Mobile
| 39%
|
Fixed
| 2.5%
|
Internet
| 17%
|
(Source: BuddeComm based on various sources)
Companies covered in this report:
- Djibouti Telecom (Evatis, Adjib);
- Telecom Italia Sparkle;
- Saudi Telecom Company (STC);
- Algerie Telecom.