Swaziland - Telecoms, Mobile and Broadband

Executive summary

Important regulatory changes to liberalise telecoms sector

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;
• The impact of the global economic crisis;
• Government policies affecting the telecoms industry;
• Market liberalisation and regulatory environment;
• Telecoms operators – privatisation, acquisitions, new licences;
• Major players (fixed, mobile and broadband);
• Infrastructure development;
• Mobile voice and data markets;
• Average Revenue per User (ARPU);
• Internet and broadband development, including 3G mobile;
• Convergence (voice/data, fixed/wireless/mobile).

Swaziland is one of the last countries in the world to abolish an almost complete monopoly in all sectors of its telecommunications market: Until 2011 the state-owned posts and telecommunications operator, SPTC also acted as the industry regulator and had a stake in the country’s sole mobile network, in partnership with South Africa’s MTN. In exchange for SPTC's right to enter the mobile market independently, the regulatory authority has now been transferred to the Ministry of ICT and the shareholding in Swazi MTN relocated to the government. In return, Swazi MTN finally received a 3G licence and the right to provide its own backbone network and international gateway.

Despite the lack of competition, mobile market penetration in Swaziland has reached a level well above the African average. The average revenue per user (APRU) is also one of the highest in Africa. The government is considering to issue another mobile licence to an international operator.

The Internet sector has been open to competition with four licensed Internet service providers (ISPs), but prices have remained high and market penetration relatively low. ADSL was introduced in 2008 and 3G mobile broadband services in 2011, but development of the sector has been hampered by the limited fixed-line infrastructure and a lack of competition in the access and backbone network.

Swaziland has a relatively well-developed fibre optic backbone network. However, being landlocked, the country depends on neighbouring countries for international fibre bandwidth which has led to high prices. A reduction of the high cost of international bandwidth can be expected from the several new submarine fibre optic cables that have reached the region recently.

Market highlights:

• Important steps towards market liberalisation;
• 3G mobile broadband services launched;
• Second/third mobile licence expected;
• One of the highest ARPU levels in Africa;
• International Internet bandwidth has more than tripled in one year;
• Estimates to end-2012 for mobile, fixed-line and Internet market.

Estimated market penetration rates in Swaziland’s telecoms sector – end-2011

(Source: BuddeComm based on various sources)

Companies covered in this report:

Swaziland Posts & Telecommunications Corporation (SPTC), Swazi MTN, Africa Online, Posix, Real Image.

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. 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 Swaziland’s ISP market
    • 6.5.1 Africa Online
    • 6.5.2 Posix
    • 6.5.3 Real Image Internet
    • 6.5.4 Swazi.net
  • 6.6 Swaziland Internet Exchange Point
• 7. Broadband market
  • 7.1 Overview
  • 7.2 ADSL
• 8. Mobile communications
  • 8.1 Overview of Swaziland’s mobile market
    • 8.1.1 Mobile statistics
  • 8.2 Swazi MTN
    • 8.2.1 Shareholders
    • 8.2.2 Licence conditions
    • 8.2.3 Network rollout and coverage
    • 8.2.4 Services and tariffs
    • 8.2.5 Distribution channels
    • 8.2.6 ARPU analysis
  • 8.3 Third generation (3G)
• 9. Related reports

• Table 1 – Country statistics Swaziland – 2011
• Table 2 – Fixed-line network statistics – 2011
• Table 3 – Internet provider statistics – 2011
• Table 4 – Internet user statistics – 2011
• Table 5 – Mobile statistics – 2011
• Table 6 – Fixed lines in service and teledensity – 1999 - 2012
• Table 7 – SPTC financial results – 2004 - 2011
• Table 8 – Internet users and penetration rate – 1999 - 2012
• Table 9 – Africa Online business services pricing – 2009/10
• Table 10 – Swazi.net Internet access pricing – 2009/10
• Table 11 – Real Image ADSL pricing – November 2010
• Table 12 – SPTC ADSL line rental pricing – November 2010
• Table 13 – Mobile subscribers and penetration rate – 1999 - 2012
• Table 14 – Swazi MTN messaging prices – 2009; 2010
• Table 15 – Swazi MTN ARPU – 2001 - 2011

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

• Exhibit 1 – Map of Swaziland
• Exhibit 2 – New international submarine fibre optic cables in southern Africa – 2009 - 2011
• Exhibit 3 – Swazi MTN licence conditions