Executive summary
Economic recovery in 2012 promises market growth
This annual report provides a comprehensive overview of trends and developments in Madagascar’s telecommunications market. Subjects covered include:
- Key statistics;
- Market and industry overviews;
- The impact of the global economic crisis;
- 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;
- Internet and broadband development and growth;
- Convergence (voice/data, fixed/wireless/mobile);
- Mobile data services, including 3G.
Madagascar’s exposure to the global economic crisis was amplified by political instability following a controversial change of government in 2009. GDP growth remained weak in 2010 and 2011 which has led to weak subscriber growth, reduced consumer spending and, as a consequence, intensified price competition between the three GSM mobile network operators – Orange, Bharti Airtel (formerly Zain) and Telma, the incumbent telco. A fourth mobile operator, Madamobil, launched a CDMA-based network in 2010. GDP growth is now expected to return to levels around 5% in 2012. Plans to exploit and export crude oil, gas and other natural resources may deliver a boost to the economy.
Positive developments in the internet and broadband sector have already begun following the arrival of the first international submarine fibre optic cables, LION and EASSy on the island in 2009 and 2010. This ended the country’s dependency on satellites for international connections, bringing down the cost of international bandwidth and making internet access more affordable to a wider part of the population.
A national fibre backbone is being implemented connecting the major cities. Wireless broadband access networks are being rolled out, enabling converged voice, data and entertainment services. In a bid to stop and ultimately reverse their rapidly declining average revenue per user, the mobile operators have entered the broadband market using third-generation (3G) technologies.
The fixed-line sector has been undergoing a revolution following the privatisation of Telma. Major investments have been made, the number of fixed lines has more than doubled, albeit from a very low base. ADSL broadband services have been introduced and the decline in fixed-line revenue has been successfully reversed.
Penetration rates in all market sectors are still well below African averages, promising excellent growth potential.
Market highlights:
- Elections finally scheduled for 2012;
- Economic recovery expected;
- Market analysis 2012;
- Forecasts to 2013 and 2016 for the mobile market;
- Estimates for end-2012 for the fixed-line and internet market;
- Profiles of major players in all market sectors.
Estimated market penetration rates in Madagascar’s telecoms sector – end 2012
Market
| Penetration rate
|
|---|
Mobile
| 47%
|
Fixed
| 0.6%
|
Internet
| 1.7%
|
(Source: BuddeComm based on various sources)
Companies covered in this report:
- Telecom Malagasy SA (Telma);
- Bharti Airtel (Zain, Celtel);
- Orange Madagascar;
- Madamobil;
- Gulfsat Madagascar;
- Blueline;
- Datacom;
- Data Telecom Services (DTS).
