Mali - Telecoms, Mobile and Broadband

Executive summary

Exceptional mobile growth in anticipation of third operator

This annual report provides a comprehensive overview of trends and developments in Mali’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 environment;
• Major players (fixed, mobile and broadband);
• Telecoms operators – privatisation, acquisitions, new licences;
• Infrastructure development;
• Mobile voice and data markets;
• Average Revenue per User;
• Internet and broadband development and growth;
• Broadband and mobile data services and pricing trends;
• Convergence (voice/data, fixed/wireless/mobile).

Home to one of the world’s most isolated cities, the fabled Timbuctu, and with a generally challenging geography for the provision of telecommunication services, Mali has market penetration rates below African averages in all market sectors except mobile where it is now racing towards the 100% mark. However, the military coup of early 2012 and its possible effects on the country's economy may slow this development down.

France Telecom was extremely successful when it entered the market as the second mobile and fixed-line operator in 2003 and quickly amassed more than 80% market share under the Orange brand, offering converged fixed, mobile and broadband Internet services.

The national telco, Sotelma with its mobile subsidiary Malitel was privatised in 2009 when a 51% stake was sold to Maroc Telecom, itself majority owned by Vivendi of France. The fresh capital and management has enabled the incumbent to compete much more aggressively and regain market share.

Third generation mobile services have been introduced, but mobile broadband services are still under development. A third mobile mobile operator was licensed in January 2012.

The introduction of ADSL, WiMAX and mobile data services has started to accelerate growth in the Internet and broadband market, but Mali’s landlocked location makes it dependent on neighbouring countries for international fibre bandwidth, which has kept prices high. Improvements in this sector can be expected from the recent arrival of new competitive international submarine fibre systems in the region.

Market highlights:

• Exceptionally strong mobile subscriber growth;
• Third mobile licence awarded;
• New international fibre will improve broadband connectivity in 2012;
• Estimates to end-2012 for mobile, fixed-line and Internet market;
• Profiles of major players in all market sectors.

Estimated market penetration rates in Mali’s telecoms sector – end-2012

(Source: BuddeComm based on various sources)

Companies covered in this report:

• Société des Télécommunications du Mali (Sotelma)
• Orange Mali (Ikatel)
• Monaco Telecom
• Afribone
• CEFIB
• Datatech

Table of Contents

• 1. Executive summary
• 2. Key statistics
  • 2.1 Country overview
• 3. Telecommunications market
  • 3.1 Overview of Mali’s telecom market
• 4. Regulatory environment
  • 4.1 Background
  • 4.2 Regulatory authority
    • 4.2.1 CRT
  • 4.3 Liberalisation of Mali’s telecom sector
  • 4.4 West African common regulatory framework
  • 4.5 Interconnection
• 5. Fixed network operators in Mali
  • 5.1 Sotelma
    • 5.1.1 Services and tariffs
    • 5.1.2 Network infrastructure
    • 5.1.3 Wireless Local Loop (WLL), CDMA-2000 1x EV-DO
    • 5.1.4 Privatisation
    • 5.1.5 Financial results 2004-2010
  • 5.2 Orange Mali
  • 5.3 Fixed-line statistics
• 6. International infrastructure
  • 6.1 Terrestrial/submarine fibre
  • 6.2 New international submarine fibre optic cables
  • 6.3 Satellite
• 7. Internet market
  • 7.1 Overview
    • 7.1.1 Internet statistics
  • 7.2 Internet cafes
  • 7.3 Multipurpose Community Telecentres (MCTs)
  • 7.4 The Cybertigi project
  • 7.5 SchoolNet
  • 7.6 One Laptop per Child (OLPC)
  • 7.7 ISP market
    • 7.7.1 Sotelma
    • 7.7.2 Orange Mali
    • 7.7.3 Afribone
    • 7.7.4 CEFIB
    • 7.7.5 Datatech
• 8. Broadband market
  • 8.1 ADSL
  • 8.2 WiMAX
• 9. Digital economy
  • 9.1 VoIP telephony
  • 9.2 E-health
  • 9.3 Tele-education
  • 9.4 Facebook
• 10. Mobile communications
  • 10.1 Overview of Mali’s mobile market
    • 10.1.1 Mobile statistics
  • 10.2 Third mobile licence
  • 10.3 Major mobile operators
    • 10.3.1 Malitel
    • 10.3.2 Orange Mali (formerly Ikatel)
  • 10.4 Mobile data services
  • 10.5 Third generation (3G)
  • 10.6 Mobile content and applications
    • 10.6.1 M-payments and m-banking
• 11. Related reports

• Table 1 – Country statistics Mali – 2012
• Table 2 – Fixed-line network statistics – 2012
• Table 3 – Internet user statistics – 2012
• Table 4 – Mobile statistics – 2012
• Table 5 – National telecommunications authority
• Table 6 – Sotelma fixed-line statistics – 2008 - 2011
• Table 7 – Sotelma financial results – 2007 - 2008
• Table 8 – Sotelma financial results – 2009 – 2011 (after privatisation)
• Table 9 – Fixed-lines in service and teledensity in Mali – 1999 - 2012
• Table 10 – Internet users and penetration rate – 1999 - 2012
• Table 11 – Internet subscribers, Sotelma vs Orange – 2008 - 2011
• Table 12 – Mobile subscribers and penetration rate – 2000 - 2012
• Table 13 – Mobile operators, subscribers and annual change – June 2011
• Table 14 – Malitel subscribers and ARPU – 2008 - 2011

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

• Exhibit 1 – Map of Mali
• Exhibit 2 – West African common regulatory framework
• Exhibit 3 – New international submarine fibre optic cables in West Africa – 2009 - 2012
• Exhibit 4 – Orange Mali wireless broadband pricing – 2008 - 2010