During the last decade Chad’s economy has been dominated by oil exports, and as a result economic growth has been adversely affected by the falling prices for the commodity on international markets. Economic difficulties, with a sharp fall in GDP recorded for 2017, have been exacerbated by civil unrest and by an influx of refugees from neighbouring countries. Declining revenue has encouraged the government to attempt to renegotiate the terms of licences which only grant it 12.5% of revenue from oil exports, while it has also endeavoured to access oil money held in an escrow account set up by the World Bank and intended to be used to alleviate poverty.
The country remains one of the least developed on the continent, while telecom infrastructure is particularly poor, with penetration rates in all sectors – fixed, mobile and internet –well below African averages. Nevertheless, despite difficult operating conditions, large scale poverty and low spending power, Chad’s telecom market offers some potential for investors to develop services given the low starting base.
The tax on mobile operators has been increased in stages in recent years, from 4% in 2014 to 7% in 2016. In January 2018 it was increased again, to 9%. Of this, the Treasury received 4%, the regulator 2.5%, the Information and Communication Technologies Development Agency (ADETIC) 1.5%, the National School of Information and Communication Technologies (ENASTIC) 0.6% and ANSCIE 0.4%. In addition to this tax an 18% excise duty was introduced in 2016 on telecom services, which has resulting in lower usage among subscribers and consequently a negative impact on operator revenue.
The two main operators Tigo Chad and Airtel Chad have invested in infrastructure and have become the main providers of voice and data services. However, the difficult economic conditions of the country, compounded by a tax on telecom services which has adversely affected customer spend and consequently on operator revenue, have encouraged these players to consider exiting the market. Tigo Chad’s parent company Millicom International entered into discussions with Orange Group in April 2017 and with Econet in the following October regarding a potential sale, while in May 2017 Bharti Aircom announced that Chad was one of its regional markets which it considered offloading.
The mobile sector has developed steadily under the auspices of Tigo Chad and Airtel Chad. The national telco and fixed-line operator Sotel Tchad (ST) operates the country’s third mobile network, as Salam Mobile. Salam Mobile is mainly focussed on voice services since its dependence on GPRS and EDGE technologies offer only basic mobile data services. The country’s first 3G/4G mobile licence was awarded in April 2014.
Chad finally gained access to international fibre bandwidth in 2012, but it still lacks a national backbone infrastructure to support efficient broadband services. However, the World Bank-funded Central African Backbone (CAB) project has made progress, and Chad is also party to a Trans-Saharan Backbone project which will link a fibre cable to Nigeria and Algeria. Investment in the national backbone is continuing though progress across all 12 sectors has been hampered by delays.
Regulator critical of MNOs’ poor quality of service; Presta Bist Telecoms increases satellite broadband capacity from O3b Networks by 66%; government introduces 18% tax on telecom services, tax on mobile operators increased to 9% from January 2018; Tigo Chad launches LTE, extends 3G to Abeche, N'Djamena and Moundou; continuing expansion of national fibre backbone infrastructure; Sotel and Camtel sign infrastructure expansion agreement; YooMee secures funding for LTE deployment; report update includes the regulator’s market updates, activity report for 2016, operator data to December 2017, Telecom Maturity Index tables, charts and analyses, recent market developments.
Sotel Tchad; TchadNet; Bharti Airtel (Airtel Chad); Millicom (Tigo Chad); Tchad Mobile (Orascom); Sitcom, Salam Mobile.
Table of Contents
List of Tables
List of Charts
List of Exhibits
Companies (Major Players)
Mobile & Wireless Broadband and Media
Mobile Communications (voice and infrastructure)
Regulations & Government Policies
Strategies & Analyses (Industry & Markets)
Number of pages 74
Last updated 20 Apr 2018
Lead Analyst: Henry Lancaster
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