The diversity among the countries in this group is immense, ranging from the small Indian Ocean island nation of Mauritius, sporting some of the best telecoms indicators of the continent, to some of the poorest countries in the world like Malawi and the island of Madagascar, as well as countries which have emerged from decades-long civil wars like Angola and Mozambique and which are consequently at a very low level of development, even though their mobile markets are growing very rapidly.
In between are relatively wealthy nations like Botswana and Namibia which benefit from their close ties with South Africa.Angola is the second-largest producer of oil in sub-Saharan Africa, and the recent rise of oil prices may push GDP growth as high as 25% in 2006.
With peace restored in 2002 after decades of civil war, foreign investment has multiplied.
However, Angola Telecom’s fixed-line network still serves less than 1% of the population.
The licensing of four new fixed-wireless operators in 2002 has introduced competition to this sector, using third-generation (3G) wireless technologies and WiMAX to provide advanced services.
Mobile market penetration is also still relatively low at less than 10%, despite rapid growth since the introduction of competition in 2001.
A third mobile licence is expected in 2006.Botswana is one of the continent’s wealthiest nations with a thriving economy that rests on diamond exploitation and tourism.
Its telecommunications sector, while not fully liberalised, is independently regulated.
Mobile penetration is approaching the 40% mark while the government-owned national operator BTC has seen a decline in the number fixed-line connections due to the success of the mobile networks.
This trend saw a reversal in 2005 with the launch of ADSL broadband services.
The recent establishment of a local Internet Exchange Point (IXP) is expected to give additional impetus to the Internet sector.
The government has been advised to take further liberalisation steps, lift the ban on VoIP Internet telephony, and privatise BTC in 2006.Madagascar’s telecom sector is independently regulated and based on competition in mobile telephony and a majority-privatised national operator.
Despite this, national teledensity remains extremely low.
The bulk of telephone connections are provided by the country’s mobile networks.
Internet penetration is impeded by the low number of fixed-line connections, high Internet tariffs and the cost of PCs.
Further liberalisation, new technologies and plans to exploit and export crude oil and natural gas reserves are expected to deliver a boost to the market in the coming years, potentially making Madagascar one of the most lucrative investment arenas on a continent.Malawi’s telecommunications sector is among the least developed in Africa with a fixed-line penetration rate below 1%, despite more than doubling the number of fixed-line connections in the past five years.
The mobile sector has grown more than nine-fold during the same period since competition was introduced, but market penetration is still very low in this sub-sector as well, at under 3%.
2005 saw a renewed failed attempt at privatisation of the national carrier, the revocation of the third mobile licence and the firing of the Board of the independent telecoms regulator.
All of these events should create new opportunities in 2006, as should the licensing of a second national operator (SNO) and the legalisation of Internet telephony (VoIP) which are both planned in the near to mid-term.The island nation of Mauritius is actively pursuing a policy to make telecommunications the fifth pillar of its economy and to become a regional telecom hub with Singapore as a role model.
It was the first with many telecommunication innovations in Africa, launching the first cellular system on the continent in 1989, the first commercial Third Generation (3G) mobile service in 2004, and the world’s first nationwide high-speed wireless broadband network based on the WiMAX standard in 2005.
The incumbent telco has been partially privatised and all sectors of the market are open to competition.
A second national operator was fitted out with the country’s second fixed-line, third mobile and seventh international gateway licence in 2004 and launch services in 2006.After 16 years of civil war, peace since 1992 and radical reforms have transformed Mozambique into one of the fastest-growing economies on the continent.
The country was one of the first in the region to reform its telecommunications landscape, immediately after a peace accord had been reached.
The sector is independently regulated and a second mobile licence was awarded in 2002.
The mobile sub-sector has experienced triple-digit growth rates almost every year since 1997, and yet, market penetration is still low at less than 7%.
Internet usage has more than doubled in recent years, but penetration in this sub-sector, as in the fixed-line sector, is still under 1%.
The privatisation of the state-owned telco is being planned and a second fixed-line operator is to be licensed before the end of 2007.Namibia’s close economic and historical links to South Africa have meant that its telecom market is one of the most developed on the continent.
Its modern, fully digital telecom network has helped to drive growth in the Internet and mobile telephony sectors.
While mobile and fixed-line services are still a monopoly, plans are underway to introduce competition in both sub-sectors.
Teledensities are above the regional average with around 7% for fixed lines and 20% for mobile.
The Internet sector is open to competition.
The partial privatisation of the mobile operator, MTC, is planned for the first half of 2006.Zambia has an independently regulated telecoms sector with three competing mobile networks and a monopoly fixed-line operator, Zamtel.
The fixed-line network is still at a very low level of development, which in turn has impeded growth in the Internet sector, while the mobile sector has experienced strong growth of close to 100% every year recently.
Nevertheless, even mobile penetration is still low at only around 6%.
Initially failed efforts to privatise Zamtel and the award of a fourth mobile licence may be revisited in the near future.
Other expected major developments in 2006 include the enactment of a national ICT policy and the liberalisation of Internet telephony (VoIP) and international gateways.Zimbabwe’s deep economic crisis, now in its seventh year, has not spared the country’s telecom industry.
Attempts to privatise the national telco during this time have failed, as has a second national operator, unable to raise the necessary funding.
Growth of the country’s three mobile networks has been slowed down, but an immense pent-up demand is now being addressed following major infrastructure upgrades.
Use of the Internet has experienced strong growth throughout the crisis and is reaching the limits of the available infrastructure.
Once the country’s political and economic mismanagement comes to an end, the emerging new opportunities should be immense.