Madagascar - Telecoms, Mobile and Broadband - Statistics and Analyses

Madagascar cracks down on SIM card fraud

Madagascar’s economy has shown steady growth in recent years, benefiting from a revived tourist sector. Plans to exploit and export crude oil, gas and other natural resources may also deliver a boost to the economy in future, despite the falling price of these commodities on international markets.

This period of strengthening economic output is helping to increase consumer spend on telecom services. These services are becoming cheaper as a result of intensifying competition between the main operators, including Orange Madagascar, Bharti Airtel (formerly Zain) and the incumbent telco Telma. A fourth mobile operator, Blueline, now operates its own network having been an MVNO since 2010.

Positive developments in the internet and broadband sector are also materialising following the arrival of the first international submarine fibre optic cables, LION and EASSy on the island in 2009 and 2010. This ended 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. The IOX cable is expected to be ready for service in early 2019, which will provide additional capacity to support the fast-growing mobile data market. In addition, the METISS submarine cable (expected to be ready in 2019) and the Africa-1 cable (expected in 2020) will provide additional links to the African mainland and other international cable systems.

A national fibre backbone is being implemented connecting the major cities, and Telma expects to invest an additional $250 million to expand the backbone network from 5,000km to 11,000km by 2019. Wireless broadband access networks are being rolled out, enabling converged voice, data and entertainment services. The launch of 3G and LTE mobile broadband services has enabled the mobile operators to reverse their rapidly declining average revenue per user (ARPU).

The fixed-line sector has been undergoing a revolution following the privatisation of Telma. Upgraded DSL services have been introduced and the decline in fixed-line revenue has been reversed. Despite these positive developments, the national telco is considering various divestiture options.

Penetration rates in all market sectors are still below African averages, and so there remains excellent growth potential.

Key Developments:

Orange Madagascar launches LTE services;
Airtel Money made available in branches of the Private Enterprise Credit Agency;
Madagascar opens its own internet exchange point;
Government and regulator work on SIM card registration scheme;
Regulator bans sale of devices without an IMEI code;
Telecom service tax raised to 10% in 2016 Finance Act;
Airtel extends mobile license for a further ten years, launches LTE services;
Orange secures mobile licence renewal;
New international fibre cables anticipated;
National fibre rollout continues;
Report update includes the regulator's market data updates for 2017, market data report for 2017, telcos' operating data, recent market developments.

Companies mentioned in this report:

Telecom Malagasy (Telma); Bharti Airtel (Zain, Celtel); Orange Madagascar; Madamobil; Gulfsat Madagascar; Blueline; Datacom; Data Telecom Services (DTS, Moov)

Table of Contents

1. Executive summary
2. Key statistics
3. Country overview
4. Telecommunications market
- 4.1 Market analysis
5. Regulatory environment
- 5.1 Telecommunications reform
- 5.2 National ICT Policy
- 5.3 Regulatory authority
  - 5.3.1 ARTEC
- 5.4 Universal Service Fund
6. Fixed network operators
- 6.1 Telecom Malagasy (Telma)
  - 6.1.1 Privatisation
- 6.2 Gulfsat Madagascar
7. Telecommunications infrastructure
- 7.1 Network infrastructure
- 7.2 National fibre optic backbone
- 7.3 International infrastructure
8. Broadband market
- 8.1 Market analysis
- 8.2 Broadband statistics
- 8.3 Public internet access locations
- 8.4 Data licensees
- 8.5 Broadband infrastructure
  - 8.5.1 Digital Subscriber Line (DSL) Networks
  - 8.5.2 Fibre-to-the-Premises (FttP)
  - 8.5.3 Other fixed-line broadband services
9. Mobile market
- 9.1 Market analysis
- 9.2 Mobile statistics
  - 9.2.1 General statistics
  - 9.2.2 Mobile broadband
  - 9.2.3 Forecasts – mobile subscribers – 2019; 2021; 2023
- 9.3 Regulatory measures
  - 9.3.1 Spectrum licenses
  - 9.3.2 SIM card registration
- 9.4 Mobile infrastructure
  - 9.4.1 4G (LTE)
  - 9.4.2 3G
  - 9.4.3 GPRS/EDGE
  - 9.4.4 Satellite mobile
- 9.5 Major mobile operators
  - 9.5.1 Airtel Madagascar (formerly Madacom, Zain/Celtel)
  - 9.5.2 Orange Madagascar (formerly SMM)
  - 9.5.3 Telma Mobile (Telecom Malagasy)
  - 9.5.4 Madamobil
  - 9.5.5 Blueline
- 9.6 Mobile handsets
- 9.7 Mobile content and applications
  - 9.7.1 Mobile money transfer, m-banking
10. Related reports

Table 1 – Top Level Country Statistics and Telco Authorities - Madagascar – 2018 (e)
Table 2 – Telecom market revenue by service – 2006 – 2017
Table 3 – Fixed-line voice and data revenue – 2014 – 2017
Table 4 – Fixed lines in service and teledensity – 2000 – 2018
Table 5– Fixed-line traffic – 2006 – 2017
Table 6 – International internet bandwidth – 2000 – 2017
Table 7 – Fixed-line internet users and penetration rate – 2000 – 2018
Table 8 – Fixed-line broadband subscribers – 2006 – 2018
Table 9 – DSL broadband subscribers – 2006 – 2017
Table 10 – Fibre broadband subscribers – 2013 – 2018
Table 11 – Mobile network coverage by technology and operator – 2017
Table 12 – Mobile subscribers and penetration rate – 2000 – 2018
Table 13 – Mobile network traffic – 2006 – 2017
Table 14 – SMS traffic – 2008 – 2017
Table 15 – Population coverage by mobile platform – 2014 – 2017
Table 16 – Active mobile broadband subscribers and penetration – 2010 - 2018
Table 17 – Mobile internet traffic – 2007 – 2017
Table 18 – Mobile internet revenue – 2016 – 2017
Table 19 – Forecast – mobile subscribers – 2019; 2021; 2023
Table 20 – Zain Madagascar financial data before takeover – 2006 – 2009
Table 21 – Airtel Madagascar mobile subscribers – 2013 – 2018
Table 22 – Orange Madagascar subscribers and ARPU – 2007 – 2018
Table 23 – Orange Madagascar revenue – 2012 – 2014
Table 24 – Telma Mobile mobile subscribers – 2013 – 2018