Executive summary
Madagascar’s exposure to the global economic crisis is amplified by political instability following the military coup of early 2009. This has led to weak subscriber growth, reduced consumer spending and, as a consequence, intensified price competition between the three mobile network operators – Orange, Zain and Telma, the incumbent telco. The launch of the fourth mobile network, Madamobil, has been delayed. The country is expected to dip into negative GDP growth in 2009, but a return to growth is expected in 2010. Plans to exploit and export crude oil, gas and other natural resources may deliver a boost to the economy.
Positive developments in the Internet and broadband sector are expected from the recent arrival of the LION international submarine fibre optic cable, the first ever to serve the island. This will end the country’s dependency on satellites for international connections, bringing down the cost of international bandwidth and making Internet access more affordable to a wider part of the population. A national fibre backbone is being implemented connecting the major cities and wireless broadband access networks are being rolled out, enabling converged voice, data and entertainment services.
In a bid to stop and ultimately reverse the rapidly declining average revenue per user (ARPU), the mobile operators have entered the broadband market with mobile data service offerings. Telma became the first to launch third generation 3G/HSPA mobile broadband services in November 2009.
The fixed-line sector has been undergoing a revolution in the way services are delivered following the privatisation of Telma. Major investments have been made, the number of fixed lines has more than doubled, albeit from a very low base, ADSL broadband services have been introduced and the decline in fixed-line revenue has been successfully reversed.
Penetration rates in all market sectors are still well below African averages, promising excellent growth potential. This report provides an overview of the country’s telecoms market, profiles of major players in all market sectors, relevant statistics, and scenario forecasts to 2010 and 2015 for the mobile, Internet and fixed-line market.
Madagascar – key telecom parameters – 2008
| Subscribers to Telecoms Services
| 2008
|
| Fixed-line subscribers (thousands)
| 159
|
| Internet subscribers (thousands)
| 13.5
|
| Mobile subscribers (thousands)
| 4,103
|
| Fixed-line penetration
| 0.8%
|
| Internet penetration
| 1.6%
|
| Mobile penetration
| 21%
|
(Source: BuddeComm based on industry data)
Key highlights:
- Market analysis 2009;
- Benchmarking with other countries in the region in terms of GDP, mobile, fixed and Internet market penetration;
- Forecasts to 2010 and 2015 for the mobile, Internet and fixed-line market;
- Profiles of major players in all market sectors;
- ARPU has fallen to US$5 per month;
- 4th mobile network launch delayed;
- First fibre optic international submarine cable reaches the country;
- Pricing comparison of all major broadband services (ADSL, WiMAX, mobile);
- National fibre rollout.
This annual report provides a comprehensive overview of trends and developments in Madagascar’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;
- Mobile voice and data markets;
- Average Revenue per User (ARPU) trends;
- 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 Madagascar, this report is essential reading and gives further information on:
- One of the highest growth potential telecom markets in Africa;
- 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;
- Average Revenue per User (ARPU).