Executive summary
3G mobile broadband rapidly gaining market share
This annual report provides a comprehensive overview of trends and developments in Senegal’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;
- Consolidation in the mobile sector;
- Infrastructure development;
- Mobile voice and data markets, including 3G;
- Average Revenue per User;
- Internet and broadband development and growth;
- Broadband and mobile data services and pricing trends;
- Convergence (voice/data, fixed/wireless/mobile);
- The emergence of m-payment and m-banking services.
Senegal’s economy has been growing at 5% per annum on average since the mid 1990s and has only moderately been affected by the global economic crisis. Representing around 6% of the country’s GDP, the telecom sector is dominated by publicly listed Sonatel, the highly profitable national telco which is now operating under France Telecom’s Orange brand following its partial privatisation in 1997. The government is planning to sell part of its remaining stake to other investors.
Sonatel has one of the most efficient telecom networks in West Africa, offering some of the lowest retail and wholesale prices in the region, although they are still high by global standards. The company is also the market leader in the mobile sector which it has shared with Millicom’s Sentel GSM (later rebranded Tigo) since 1999.
Competition in the fixed-line sector was introduced when Sudan’s Sudatel launched as the second national operator (SNO) in 2009 under the name Expresso. Its licence also includes the country’s third mobile concession. The new entrant initially chose CDMA2000 technology to serve both market segments but switched to GSM technology in 2010, including 3G/HSPA mobile broadband.
However, the licensing of new operators has not always been transparent in Senegal. Both Sentel’s and Sudatel’s licences were awarded under controversial circumstances, and Sentel’s licence has been challenged by the government.
Although mobile market penetration has passed the 70% mark, the average revenue per user in Senegal is relatively high. A wide range of value-added services is available to subscribers, including mobile Internet access.
Development of the Internet market has been hampered by Sonatel’s monopolistic pricing of bandwidth on the only high-capacity international submarine fibre optic cable serving the country. Despite this, broadband services in Senegal are relatively advanced, including broadband TV (IPTV) and converged triple-play services. Sonatel has progressively reduced its prices following the arrival of a second international fibre optic submarine cable in 2007, with two more scheduled for 2012.
Market highlights:
- Mobile market penetration has passed 70%;
- 3G mobile network operator growing at over 200% p.a.
- Estimates for end-2012 for mobile, fixed-line and Internet market;
- Profiles of major players in all market sectors;
- Sonatel financial results history;
- New international fibre optic submarine cables expected in 2012.
Estimated market penetration rates in Senegal’s telecoms sector – end-2011
Market
| Penetration rate
|
|---|
Mobile
| 77%
|
Fixed
| 3%
|
Internet
| 9%
|
(Source: BuddeComm based on various sources)
Companies covered in this report:
Sonatel (France Telecom, Orange), Millicom (Sentel, Tigo), Sudatel (Expresso).
