Mozambique - Telecoms, Mobile and Broadband - Market Insights and Statistics

Executive summary

Mozambique’s Alliance for Affordable Internet helping reduce cost of internet access


Mozambique’s economy has shown consistently strong growth for a number of years. The country’s GDP was largely unaffected by the global economic crisis which erupted in 2008, and continues to restrict growth among many economies. GDP growth was 7.1% in 2010, and remained at that level through to 2013. Growth is expected to have increased to 8.3% for 2014.

The country was one of the first in the region to reform its telecom sector, which immediately followed the long civil war which ended in 1992. As a result, the sector has seen the introduction of measures favourable to competition, and which promote access to infrastructure. The mobile segment in particular has shown strong growth since the introduction of competition in 2003 between Vodacom Mozambique and mCel, the incumbent mobile subsidiary of the national telco TDM. Given that mobile market penetration remains far below the African average, and that the country has relatively low fixed-line penetration, there is considerable room for further growth in coming years. This has been stimulated by the launch of commercial services from the third operator Movitel, which is backed by Vietnam’s Viettel.

The government in 2013 drafted a revision of the 2004 Telecommunications Act, aimed at developing greater competition, and facilitating access to networks and infrastructure in a bid to reduce investment costs.

The poor fixed-line infrastructure has largely held back the market for internet services. The high cost of international bandwidth had long hampered internet use given the relatively high cost of access, though the landing of two international submarine fibre optic cables (Seacom and EASSy) has reduced the cost of bandwidth and so led to drastic reductions in broadband retail prices.

Cross-platform competition, with active ADSL, cable broadband, WiMAX, 3G mobile and limited Fibre-to-the-Premise (FttP) services, is also helping the market to develop. Further improvements can be expected from the ongoing rollout of a national fibre backbone networks by TDM and the mobile operators.

Estimated market penetration rates in Mozambique’s telecoms sector – end-2015 (e)

Market
Penetration rate
Mobile
62%
Fixed
0.3%
Internet
8.2%

(Source: BuddeComm based on various sources)

Key developments:

Mozambique misses June 2015 ASO deadline, signs transition arrangements with neighbouring countries; the government reinstates scheme for SIM card registration; government appeals for reduces roaming charges among MNOs; Movitel’s investment strategy leading to rapid subscriber gains; Mozambique joins the Alliance for Affordable Internet, aiming to provide broadband at less than 5% of average monthly income; Mobile Termination Rates reduced by 20%; stable mobile ARPU despite increased competition; fibre optic backbone network rollouts; developments in ADSL, Vodacom signs deal with Electricidade de Mocambique to market pre-paid top-up cards for electricity via the M-Pesa service; cable TV, WiMAX, EV-DO, 3G mobile; operator data to June 2014, ITU market data updates; recent market developments.

Companies mentioned in this report:

Telecomunicações De Moçambique (TDM); Vodacom Mozambique; mCel (TDM); Movitel (Viettel); Teledata (TDM); TV Cabo; Intra; Tropical Web, Seacom.

Table of Contents

  • 1. Executive summary
  • 2. Key statistics
  • 3. Telecommunications market
    • 3.1 Market analysis
  • 4. Regulatory environment
    • 4.1 Telecommunications Law 1992
    • 4.2 Basic Telecommunications Law 2004
    • 4.3 Regulatory authority
      • 4.3.1 Instituto Nacional das Comunicações de Moçambique (INCM)
    • 4.4 National Commission on Information
    • 4.5 Telecom sector liberalisation in Mozambique
    • 4.6 Interconnection
    • 4.7 Universal service
    • 4.8 Quality of service
    • 4.9 SIM card registration
  • 5. National fixed-network operator
    • 5.1 TDM
      • 5.1.1 Fixed-line statistics
      • 5.1.2 Subsidiaries
      • 5.1.3 Privatisation
      • 5.1.4 Network infrastructure
      • 5.1.5 National fibre backbone
      • 5.1.6 Tariffs
      • 5.1.7 Financial results
  • 6. International infrastructure
    • 6.1 Satellite
    • 6.2 Terrestrial microwave and fibre
    • 6.3 Submarine fibre
  • 7. Internet market
    • 7.1 Overview
      • 7.1.1 Internet statistics
    • 7.2 Internet connectivity
    • 7.3 Public internet access locations
    • 7.4 Cost of personal computers
    • 7.5 Mozambique’s ISP market
      • 7.5.1 Teledata
      • 7.5.2 Intra (Internet Solutions)
      • 7.5.3 Tropical Web
    • 7.6 Mozambique Internet Exchange Point (MOZ-IX)
    • 7.7 E-government
  • 8. Broadband market
    • 8.1 ADSL
    • 8.2 Broadband via cable TV (TV Cabo)
    • 8.3 Fibre-to-the-Premises (FttP)
    • 8.4 Wireless broadband
      • 8.4.1 EV-DO
      • 8.4.2 WiMAX
      • 8.4.3 Mobile broadband
  • 9. Digital broadcasting
  • 10. Mobile communications
    • 10.1 Overview of Mozambique’s mobile market
    • 10.2 Third mobile licence
    • 10.3 Spectrum auction
    • 10.4 Roaming
    • 10.5 SIM card registration
    • 10.6 Mobile statistics
    • 10.7 Major mobile operators
      • 10.7.1 mCel
      • 10.7.2 Vodacom Mozambique
      • 10.7.3 Movitel
    • 10.8 Mobile data services
    • 10.9 Third generation (3G)
    • 10.10 ARPU, Minutes of Use (MoU)
  • 11. Forecasts
    • 11.1 Forecasts – mobile market – 2014; 2017
    • 11.2 Notes on scenario forecasts
  • 12. Related reports
  • Table 1 – Country statistics Mozambique – 2014
  • Table 2 – Fixed-line network statistics – 2015 (e)
  • Table 3 – Internet provider statistics – 2015
  • Table 4 – Internet and social media user statistics – 2015 (e)
  • Table 5 – Mobile statistics – 2015 (e)
  • Table 6 – National telecommunications authority
  • Table 7 – Historic - Fixed lines in service and teledensity – 1995 - 2004
  • Table 8 – Fixed lines in service and teledensity – 2005 - 2015
  • Table 9 – TDM financial results – 2006 - 2011
  • Table 10 – International bandwidth – 2001 - 2013
  • Table 11 – Historic - Internet users and penetration rate – 1996 - 2004
  • Table 12 – Internet users and penetration rate – 2005 – 2015
  • Table 13 – Fixed-line broadband subscribers – 2007 - 2015
  • Table 14 – DSL broadband subscribers – 2006 - 2015
  • Table 15 – TDM ADSL pricing – 2015
  • Table 16 – NetCabo cable broadband pricing – 2015
  • Table 17 – TDM EV-DO broadband pricing – 2015
  • Table 18 – Active mobile broadband subscribers – 2010 - 2014
  • Table 19 – Historic - Mobile subscribers and penetration rate – 1997 - 2004
  • Table 20 – Mobile subscribers and penetration rate – 2005 - 2015
  • Table 21 – mCel mobile subscribers – 2012 - 2013
  • Table 22 – Vodacom Mozambique financial results – 2007 - 2010
  • Table 23 – Vodacom Mozambique subscribers – 2008 - 2014
  • Table 24 – Vodacom Mozambique ARPU – 2008 - 2014
  • Table 25 – Movitel mobile subscribers – 2012 - 2013
  • Table 26 – mCel 3G prepaid pricing – 2015
  • Table 27 – Vodacom Mozambique ARPU – 2008 - 2014
  • Table 28 – Forecast – mobile subscribers – 2014; 2017
  • Chart 1 – Fixed lines in service and teledensity – 2005 – 2015
  • Chart 2 – Internet users and penetration rate – 2005 – 2015
  • Chart 3 – Mobile subscribers and penetration rate – 2005 - 2015

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