Executive summary
3G mobile and international fibre access will trigger broadband growth
This annual report provides a comprehensive overview of trends and developments in Zambia’s telecommunications market. Subjects covered include:
- Key statistics;
- Market and industry overviews;
- Government policies affecting the telecoms industry;
- Market liberalisation and regulatory issues;
- The impact of the global economic crisis;
- Telecoms operators – privatisation, IPOs, acquisitions, new licences;
- Major players (fixed, mobile and broadband);
- Infrastructure development;
- The impact of access to international submarine fibre for a landlocked country;
- Mobile voice and data markets, including 3G;
- Internet and broadband development and pricing;
- Average revenue per user;
- Convergence (voice/data, fixed/wireless/mobile).
Zambia’s GDP growth has remained almost unaffected by the global economic crisis and is expected to continue at around 6% p.a.
The country’s telecommunications market is dominated by mobile network operator Bharti Airtel (formerly Zain) which has a market share of around 65%. However, the fastest subscriber growth is currently seen by the runner-up, MTN (formerly Telecel) from South Africa. The third competitor in the mobile market is Cell Z, the mobile division of the national telco, Zamtel. Zamtel has been performing poorly in the mobile as well as the fixed-line sector, despite monopoly rights in the latter, including the international gateway. This has also limited growth in the internet and broadband sector, with some of the highest prices for international bandwidth on the continent.
The landlocked country has recently gained access to international submarine fibre optic cables for the first time, which has already led to some significant retail price reductions for broadband services. Third generation (3G) mobile broadband services were launched in early 2011 and national fibre networks are being rolled out by four different companies. Several ISPs have rolled out WiMAX wireless broadband networks. These developments are set to increase broadband penetration significantly in the coming years.
Zambia’s main opposition party has stated it will renationalise Zamtel if it wins the 2011 national elections. A majority stake in the telco is owned by the Libyan government.
Market highlights:
- New international fibre connections lead to lower broadband prices;
- 3G mobile broadband services launched;
- Libyan-owned Zamtel may be renationalised;
- Profiles of major players in all market sectors;
- Estimates for mobile, fixed-line and internet market to end-2011 and 2012;
- Mobile market forecasts for 2013 and 2016;
- Mobile ARPU remains weak as market penetration approaches 50%.
Estimated market penetration rates in Zambia’s telecoms sector – end-2011
Market
| Penetration rate
|
|---|
Mobile
| 47%
|
Fixed
| 1%
|
Internet
| 9%
|
(Source: BuddeComm based on various sources)
Data in this report is the latest available at the time of preparation and may not be for the current year.
Peter Lange
June 2011
