Malawi is one of the world’s least developed and poorest countries, beset in recent years by declining GDP growth, high inflation, and a rapidly depreciating currency. To add to these difficulties the country has one of the highest HIV rates in the world. Telcos have been affected by currency devaluation, which has delayed their ability to fund network upgrades. In addition, the government in mid-2013 instituted a tax on internet services, the additional cost of services being passed on to consumers.
Mobile penetration remains very low in comparison to the African average. This allows for considerable opportunities for further growth. The market remains a duopoly between Bharti Airtel (formerly Zain) and Telecom Networks Malawi (TNM), given the failure of G-Mobile and Celcom Malawi to launch services. However, there is expectation that Lacell Private will launch services (under the Smart Mobile brand) by the end of 2016. This could provide the required impetus to the market, and lead to a welcome fall in end-user prices.
To encourage additional market competition, the government has followed in the footsteps of several of its neighbours and introduced a converged licensing regime which allows the two fixed-line operators, Malawi Telecommunications (MTL) and Access Communications (ACL) to enter the mobile market as well. The converged licensing regime was revised and came into force in September 2016.
The internet sector is reasonably competitive with about 50 licensed ISPs, though the limited availability and high cost of international bandwidth has held back growth and kept broadband access prices among the highest in the region. DSL services are available, and several ISPs continue to extend their WiMAX wireless broadband footprints. The two incumbent mobile networks have launched third generation (3G) mobile services based on UMTS/HSPA technology, while Telekom Networks Malawi (TNM) has invested in LTE infrastructure.
A national fibre backbone is being implemented, and the country recently gained access to international submarine fibre optic cables for the first time when a transit link via neighbouring countries was completed. Provided a suitable regulatory regime is put in place, this will bring down the cost of international bandwidth and deliver a boost to the broadband market.
Market penetration rates in Malawi’s telecoms sector – 2016 (e)
|Penetration of telecoms services:||Penetration|
|Mobile SIM (population)||38.3%|
Malawi Telecommunications (MTL), Access Communications (ACL), Bharti Airtel (Zain, Celtel), Telekom Networks Malawi (TNM), G-Mobile (GAIN), Celcom, Escom, MalawiNet, MTL Online, Skyband, Globe Internet, Broadmax, Burco.
Companies (Major Players)
Mobile & Wireless Broadband and Media
Mobile Communications (voice and infrastructure)
Regulations & Government Policies
Strategies & Analyses (Industry & Markets)
Number of pages 36
Last updated 25 Oct 2016
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