Synopsis
The new private owners of Madagascar’s incumbent telco, Telma, have managed to more than double the number of fixed line customers within two years after years of stagnation, and to reverse the decline in fixed-line revenues through the introduction of attractive prepaid services. They have also entered the mobile market successfully as the country’s third player. Penetration rates in both sectors are still well below African averages, promising excellent growth potential. Pent-up demand for Internet access and broadband capabilities, resulting from the traditionally underdeveloped fixed network, will continue driving both market sectors. With one of the lowest GDPs per capita in the world, there will be limits to the growth of Madagascar’s telecoms market, but plans to exploit and export crude oil, gas and other natural resources may deliver a boost to the economy. However, the global economic crisis and possible sanctions following the military coup in early-2009 may affect growth in the short to medium term. This report provides an overview of the country’s telecoms sector, profiles of major players, relevant statistics, and scenario forecasts to the years 2010 and 2015.