Guinea - Telecoms, Mobile and Broadband

Executive summary

International fibre optic cable landing in 2012 will enable broadband services

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

• One of the fastest growing mobile markets in the region;
• 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;
• Internet and broadband development and growth;
• Broadband and mobile data services and pricing trends;
• Convergence (voice/data, fixed/wireless/mobile);
• Mobile Average Revenue per User (ARPU).

Guinea in West Africa has vast mineral resources and is yet one of the poorest countries in the world. With five competing mobile networks, its telecommunications sector has shown triple-digit growth rates for three years in a row following the entry of two world-class international operators, MTN and Orange. The other competitors are Intercel, Cellcom and Lagui, the mobile unit of the national fixed-line operator, Sotelgui.

Following the exit of Telekom Malaysia in 2008, Sotelgui is being prepared for renewed privatisation, creating an attractive opportunity for a strategic investor. Despite the rapid growth, mobile market penetration is still well below the African average, and the country’s fixed-line and Internet markets are virtually untapped.

Broadband services are still very limited and expensive. The planned arrival of at least one international fibre optic submarine cable in 2012 will bring abundant and competitive international bandwidth to Guinea for the first time which will have nothing short of a revolutionary effect on telecommunications in the country.

The country slipped into a mild recession in 2009, but stable GDP growth of between 4% and 5% per year is forecast for the period 2011-2016.

A licence fee dispute resulted in the temporary seizure of MTN assets in mid-2011, but the issue was quickly resolved.

Market highlights:

• At least one international fibre optic submarine cable to land in 2012;
• MTN licence fee dispute resolved, seized assets released;
• Second privatisation of Sotelgui expected;
• Profiles of major players in all market sectors;
• Estimates for mobile, fixed-line and Internet market at end-2012.

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

(Source: BuddeComm based on various sources)

Companies covered in this report:

Société des Télécommunications de Guinée (Sotelgui), MTN (Areeba, Investcom), Orange (France Telecom, Spacetel), Intercel (Télécel Guinea), Cellcom Guinee, MiriNet (Afribone), ETI, Universal Communication (DiscoveryTel), Ristel, Afripa Telecom, , Alternet Systems, Broad Telecom, Soguicis, Thucatel, Telekom Malaysia.

Table of Contents

• 1. Executive summary
• 2. Key statistics
  • 2.1 Country overview
• 3. Telecommunications market
  • 3.1 Overview of Guinea’s telecom market
• 4. Regulatory environment
  • 4.1 Background
  • 4.2 Regulatory authority
    • 4.2.1 DNPT
• 5. Fixed network operators in Guinea
  • 5.1 Sotelgui
    • 5.1.1 Privatisation
    • 5.1.2 Network infrastructure
    • 5.1.3 Fixed-line statistics
    • 5.1.4 Wireless Local Loop (WLL), CDMA2000 1x
    • 5.1.5 Public payphones
    • 5.1.6 Telecentres
  • 5.2 International infrastructure
• 6. Internet market
  • 6.1 Overview
    • 6.1.1 Internet statistics
  • 6.2 ISP market
    • 6.2.1 Sotelgui
    • 6.2.2 MiriNet
    • 6.2.3 ETI (Biasy)
    • 6.2.4 Universal Communication, Ristel
• 7. Broadband market
  • 7.1 Overview
  • 7.2 SchoolWeb WiFi Network
  • 7.3 VoIP Internet telephony
• 8. Mobile communications
  • 8.1 Overview of Guinea’s mobile market
    • 8.1.1 Mobile statistics
  • 8.2 Major mobile operators
    • 8.2.1 MTN Guinea (Areeba)
    • 8.2.2 Sotelgui (Lagui)
    • 8.2.3 Orange Guinea (formerly Spacetel Guinee)
    • 8.2.4 Intercel Guinea (formerly Télécel Guinea)
    • 8.2.5 Cellcom Guinee
  • 8.3 Mobile data services
  • 8.4 Satellite mobile
• 9. Related reports

• Table 1 – Country statistics Guinea – 2011
• Table 2 – Fixed-line network statistics – 2011
• Table 3 – Internet user statistics – 2011
• Table 4 – Mobile statistics – 2011
• Table 5 – National telecommunications authority
• Table 6 – Fixed-lines in service and teledensity – 1999 - 2012
• Table 7 – Internet users and penetration rate – 1999 - 2012
• Table 8 – Mobile subscribers and penetration rate – 1999 - 2012
• Table 9 – MTN Guinea subscribers and ARPU – 2006 - 2010
• Table 10 – Orange Guinea subscribers – 2007 - 2011

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

• Exhibit 1 – Map of Guinea
• Exhibit 2 – West African common regulatory framework 2005
• Exhibit 3 – International submarine fibre optic cables in West Africa – 2009 - 2012