Swaziland - Telecoms, Mobile and Broadband

Executive summary

Swaziland is one of the last countries in the world with an almost complete monopoly in all sectors of its telecommunications market: The state-owned posts and telecommunications operator, SPTC also acts as the industry regulator and has a stake in the country’s sole mobile network, in partnership with South Africa’s MTN. The planned unbundling and eventual privatisation of the incumbent and the introduction of more competition would enable the market to live up to its relative GDP strength.

Despite the lack of competition, mobile market penetration at more than 60% is well above the African average. More than 90% of all telephones in the country are mobile phones. Swazi MTN has entered the Internet sector with basic mobile data services in a bid to generate additional revenues in an environment of rapidly declining average revenue per user, and the company is preparing for the introduction of third generation mobile broadband services.

The Internet sector is open to competition with four licensed ISPs, but prices have remained high and market penetration relatively low. Broadband services are still very limited and expensive. Development of the sector has been hampered by the limited fixed-line infrastructure and a lack of competition in the access and backbone network, although the country has a relatively well-developed fibre optic backbone. However, being landlocked, Swaziland depends on neighbouring countries for international fibre bandwidth which has led to high prices. Improvements can be expected when several new submarine fibre optic cables reach the region in 2010 and 2011.

Key highlights:

• 2010 estimates for mobile, fixed-line and Internet market;
  
• Profiles of major players in all market sectors;
  
• SPTC restructuring expected;
  
• Preparations for 3G mobile network launch;
  
• Internet and broadband pricing trends 2009;
  
• Lower international bandwidth prices expected from 2010.
  

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

• One of the last almost completely monopolistic telecom markets in Africa;
  
• Government policies affecting the telecoms industry;
  
• The impact of the global economic crisis;
  
• Telecoms operators – privatisation, acquisitions, new licences;
  
• Internet and broadband development and growth, including 3G mobile;
  
• Broadband and mobile data services and pricing trends;
  

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

• Key statistics;
  
• Market and industry overviews;
  
• Regulatory environment and structural reform;
  
• Major players (fixed, mobile and broadband);
  
• Infrastructure development;
  
• Mobile voice and data markets;
  
• Average Revenue per User (ARPU);
  
• 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 Overview of Swaziland’s telecom market
    
• 4. Regulatory environment
  
  • 4.1 Overview
    
  • 4.2 Telecom sector liberalisation
    
• 5. Fixed network operator in Swaziland
  
  • 5.1 SPTC
    
    • 5.1.1 Services
      
    • 5.1.2 Fixed network infrastructure
      
    • 5.1.3 Fixed-line statistics
      
    • 5.1.4 Wireless local loop (WLL)
      
    • 5.1.5 National fibre backbone
      
    • 5.1.6 International infrastructure
      
    • 5.1.7 Financial results
      
• 6. Broadband and Internet market
  
  • 6.1 Overview
    
    • 6.1.1 Internet statistics
      
  • 6.2 Public Internet access locations
    
  • 6.3 Computer Education Trust (CET)
    
  • 6.4 E-banking
    
  • 6.5 Broadband market overview
    
  • 6.6 Swaziland’s ISP market
    
    • 6.6.1 Africa Online
      
    • 6.6.2 Posix
      
    • 6.6.3 Real Image Internet
      
    • 6.6.4 Swazi.net
      
  • 6.7 Swaziland Internet Exchange Point
    
• 7. Mobile communications
  
  • 7.1 Overview of Swaziland’s mobile market
    
    • 7.1.1 Mobile statistics
      
  • 7.2 Swazi MTN
    
    • 7.2.1 Shareholders
      
    • 7.2.2 Licence conditions
      
    • 7.2.3 Network rollout and coverage
      
    • 7.2.4 Services and tariffs
      
    • 7.2.5 Distribution channels
      
    • 7.2.6 ARPU analysis
      
• 8. Related reports
  

• Table 1 – Country statistics Swaziland – 2010
• Table 2 – Fixed-line network statistics – 2009
• Table 3 – Internet provider statistics – 2009
• Table 4 – Internet user statistics – 2009
• Table 5 – Mobile statistics – 2009
• Table 6 – Fixed lines in service and teledensity – 1995 - 2010
• Table 7 – SPTC financial results – 2004 - 2008
• Table 8 – Internet users and penetration rate – 1996 - 2010
• Table 9 – Africa Online business services monthly pricing – 2009
• Table 10 – Swazi.net Internet pricing – 2009
• Table 11 – Mobile subscribers and penetration rate – 1998 - 2010
• Table 12 – Swazi MTN messaging prices – 2009
• Table 13 – Swazi MTN ARPU – 2001 - 2009

• Exhibit 1 – Chart of fixed-line, mobile subscriber and Internet user growth, 1999 - 2010
• Exhibit 2 – Map of Swaziland
• Exhibit 3 – New international submarine fibre optic cables in southern Africa – 2009 - 2011
• Exhibit 4 – Posix Internet pricing – 2009
• Exhibit 5 – Swazi MTN licence conditions
• Exhibit 6 – Swazi MTN coverage map – 2009
• Exhibit 7 – Swazi MTN distribution channels, wholesale versus retail – 2008