Malawi - Telecoms, Mobile and Broadband

Executive summary

One of the world’s least developed countries, Malawi is expected to be able to avoid a recession as a result of the global economic crisis, although its GDP growth will gradually slow from almost 10% in 2008 to around 3% in 2011. Penetration rates in all sectors of the telecommunications market are still well below regional averages. With the imminent launch of the third network, G-Mobile, the mobile sector is set for a boost when it finally moves beyond the duopoly held for many years by Zain and TNM, the mobile arm of fixed-line incumbent MTL. In parallel, however, the ARPU is expected to continue its rapid decline.

Competition for MTL is also set to arrive in the fixed-line sector in early 2010 with the second operator Access Communications (ACL), already licensed in 2007. The company may eventually emerge as the country’s fourth mobile operator, since the CDMA2000 technology it uses supports full mobility. Malawi’s telecoms regulator, MACRA has announced it plans to licence a fourth mobile network.

The fixed-line sector itself has seen a revival following MTL’s privatisation and the introduction of CDMA2000 fixed-wireless services. A national fibre backbone is being implemented, and the country is set to gain access to international submarine fibre optic cables for the first time in 2010 when a transit link via neighbouring countries is completed. Provided a suitable regulatory regime is put in place, this will bring down the cost of international bandwidth and deliver a boost to the broadband market.

The Internet sector is reasonably competitive with 15 licensed ISPs, but the limited availability and high cost of international bandwidth has held back growth and kept broadband prices high. Several ISPs are rolling out WiMAX wireless broadband networks, and the CDMA2000 networks of MTL and ACL support broadband speeds with the EV-DO technology being used.

Mobile data services are currently limited to GPRS, as 3G systems have not yet been launched.

Key highlights:

• Market analysis 2009;
  
• Benchmarking with other countries in the region in terms of GDP, mobile, fixed and Internet market penetration;
  
• Profiles of major players in all market sectors;
  
• ARPU has fallen below US$10 per month;
  
• Mobile network financial results H1 2009;
  
• Third mobile network and second fixed network set to launch;
  
• Licensing of fourth mobile network expected;
  
• National fibre rollout;
  
• International fibre bandwidth to reach the country in 2010;
  
• Internet access pricing (dial-up, WiMAX, GPRS).
  

Mobile penetration in Malawi and other countries in the region – March 2009

(Source: BuddeComm based on various sources)

For those needing high level strategic information and objective analysis on the telecommunications sector in Malawi, this report is essential reading and gives further information on:

• One of the highest growth potential telecom markets in Africa;
  
• Government policies affecting the telecoms industry;
  
• The impact of the global economic crisis;
  
• Market liberalisation and regulatory issues;
  
• Telecoms operators – privatisation, IPOs, acquisitions, new licences;
  
• Internet and broadband development and pricing;
  
• Mobile data services and pricing;
  
• Average Revenue per User (ARPU).
  

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

• Key statistics;
  
• Market and industry overviews;
  
• The impact of the global economic crisis;
  
• Regulatory environment and structural reform;
  
• Major players (fixed, mobile and broadband);
  
• Infrastructure development;
  
• Mobile voice and data markets;
  
• Average Revenue per User (ARPU) trends;
  
• Internet and broadband development and pricing;
  
• Convergence (voice/data, fixed/wireless/mobile).
  

Table of Contents

• 1. Executive summary
  
• 2. Key statistics
  
  • 2.1 Country overview
    
• 3. Telecommunications market
  
  • 3.1 Market analysis 2009
    
  • 3.2 Regional benchmarking
    
• 4. Regulatory environment
  
  • 4.1 Malawi Communications Act 1998
    
    • 4.1.1 Malawi Communications Amendment Act 2009
      
  • 4.2 ICT Policy
    
  • 4.3 Regulatory authority
    
    • 4.3.1 Malawi Communications Regulatory Authority (MACRA)
      
  • 4.4 Telecom sector liberalisation in Malawi
    
  • 4.5 Licence fees and levies
    
  • 4.6 Universal service
    
  • 4.7 Interconnection
    
• 5. Fixed network operators in Malawi
  
  • 5.1 Malawi Telecommunications Ltd (MTL)
    
    • 5.1.1 Privatisation
      
    • 5.1.2 Fixed-line statistics
      
    • 5.1.3 Network infrastructure
      
    • 5.1.4 CDMA fixed-wireless system (Liberty Phone)
      
  • 5.2 Access Communications
    
• 6. National fibre backbone infrastructure
  
  • 6.1 MTL
    
  • 6.2 Escom
    
• 7. International infrastructure
  
  • 7.1 Submarine cable networks
    
• 8. Internet market
  
  • 8.1 Overview
    
    • 8.1.1 Internet statistics
      
  • 8.2 Malawi’s ISP market
    
    • 8.2.1 MalawiNet
      
    • 8.2.2 MTL Online
      
    • 8.2.3 Skyband
      
    • 8.2.4 Globe Internet
      
• 9. Broadband market
  
  • 9.1 Overview
    
  • 9.2 Voice over Internet Protocol (VoIP)
    
  • 9.3 Wireless broadband
    
    • 9.3.1 Broadmax
      
    • 9.3.2 Skyband
      
    • 9.3.3 Globmax
      
• 10. Mobile communications
  
  • 10.1 Overview of Malawi’s mobile market
    
    • 10.1.1 Mobile statistics
      
  • 10.2 Major mobile operators
    
    • 10.2.1 TNM
      
    • 10.2.2 Zain Malawi (formerly Celtel)
      
  • 10.3 Third and fourth mobile licence
    
    • 10.3.1 G-Mobile (GAIN)
      
  • 10.4 Mobile data services
    
• 11. Related reports
  

• Table 1 – Country statistics – 2009
• Table 2 – Telephone network statistics – 2008
• Table 3 – Internet provider statistics – 2009
• Table 4 – Internet user statistics – 2008
• Table 5 – Mobile statistics – June 2009
• Table 6 – National telecommunications authority
• Table 7 – GDP per capita in Malawi and other countries in the region – 2009
• Table 8 – Mobile penetration in Malawi and other countries in the region – March 2009
• Table 9 – Internet user penetration in Malawi and other countries in the region – 2008
• Table 10 – Fixed-line penetration in Malawi and other countries in the region – 2008
• Table 11 – Licence fees and levies – 2009
• Table 12 – Fixed lines in service and teledensity – 1995; 1997; 1999 - 2008
• Table 13 – Internet users and penetration rate – 1997; 1999 - 2008
• Table 14 – Globemax WiMAX pricing – October 2009
• Table 15 – Mobile subscribers and penetration rate – 1995 - 2009
• Table 16 – Mobile operators, subscribers and annual change – June 2009
• Table 17 – Zain Malawi subscribers, market share and ARPU – 2006 - 2009
• Table 18 – TNM GPRS pricing – October 2009

• Exhibit 1 – MTL fixed-wireless coverage map – October 2009