Executive summary
Sudan, the gem that Zain won't sell
The third-largest oil producer in sub-Saharan Africa and one of the biggest countries on the continent, Sudan has a large, relatively well-equipped telecommunications system by regional standards, including a national fibre optic backbone and international fibre connections. With penetration rates in all market segments still relatively low, it is regarded as one of Africa’s most lucrative telecommunications markets, receiving hundreds of millions of dollars in foreign investment per year.
The national telco, Sudatel has been privatised for more than ten years, with major shares and management control now held by Etisalat of the UAE and Qatar Telecom. It is also listed on several regional stock exchanges. The company presided over the world’s fastest growing fixed-line market until it started substituting traditional copper lines with CDMA2000 fixed-wireless access in 2005.
Competition in the fixed-line market comes from Canartel which, interestingly, is also majority-owned by Etisalat. It too opted for CDMA2000 technology to cost effectively roll out fixed services and, like Sudatel, is offering wireless broadband services through this network following an upgrade to the EV-DO standard. The company is lobbying for a licence to offer mobile services as well but is meeting resistance from the other operators.
Sudatel exited the mobile market when it sold its GSM network to Celtel (now Zain) at a record price in 2006, following the arrival of competition the year before from Bashair Telecom. Sudatel then re-entered the mobile market independently with its CDMA network under the brand name Sudani. At the end of 2009 the company launched a GSM-based network overlay, keeping up with Zain and MTN in offering third generation services including HSDPA mobile broadband with up to 7.2Mb/s.
Broadband pricing is still high and varies widely between the different operators, and a stark contrast exists between their respective average-revenue-per-user levels, with the leading operator achieving twice as much as one of its competitors, one of the highest ARPU levels in the region.
Under a peace agreement, the oil-rich south of the country, which has long been beyond the central government’s control and deprived of development, is establishing its own independent telecommunications regime, creating new opportunities for service providers and equipment suppliers.
Market highlights:
- Market analysis 2010;
- Profiles of major players in all market sectors;
- EASSY international submarine fibre goes online;
- Two competing national fibre backbones;
- Infrastructure expansion into southern Sudan and Darfur regions;
- Intensified mobile broadband competition;
- Wide variation of broadband pricing and mobile ARPU;
- Possible entry of fourth player into the mobile market.
Estimated market penetration rates in Sudan’s telecoms sector – end 2010
Market
| Penetration rate
|
|---|
Mobile
| 54%
|
Fixed
| 1%
|
Internet
| 17%
|
(Source: BuddeComm based on various sources)
This annual report provides a comprehensive overview of trends and developments in Sudan’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, including fibre;
- Mobile voice and data markets, including 3G;
- Internet and broadband development and pricing;
- Convergence (voice/data, fixed/wireless/mobile).
For those needing high level strategic information and objective analysis on the telecommunications sector in Sudan, this report is essential reading and gives further information on:
- Government policies affecting the telecoms industry;
- The impact of the global economic crisis;
- Market liberalisation and regulatory issues;
- Telecoms operators – privatisation, acquisitions, new licences;
- Internet and broadband development and growth;
- Mobile data services and pricing, including 3G broadband.
- Average Revenue per User.