Chad - Telecoms, Mobile and Internet

Broadband market lacks international bandwidth and backbone network infrastructure

This annual report provides a comprehensive overview of trends and developments in Chad’s telecommunications market.

Subjects covered include:

One of the most underdeveloped telecom markets in the world ; The impact of the global economic crisis ; Key statistics ; Market and industry overviews ; Government policies affecting the telecoms industry ; Market liberalisation and regulatory issues ; Telecoms operators – privatisation, acquisitions, new licences ; Major players (fixed, mobile and broadband) ; Infrastructure development ; Mobile voice and data markets ; Average Revenue per User (ARPU) trends ; Internet and broadband development ; Convergence (voice/data, fixed/wireless/mobile).Internet and broadband development ; Mobile data services.

Despite being Africa’s latest exporter of oil, Chad has one of the least developed telecommunications markets in the world. Penetration rates in all market sectors – fixed, mobile and Internet – are well below African averages.

The mobile sector is growing fast under competition between two foreign-owned networks – Bharti Airtel (formerly Zain), and Millicom (Tigo). The national telco and fixed-line operator, Sotel Tchad (ST) was participating in another mobile network in partnership with Orascom Telecom until it ceased operations in 2004 over legal disputes between the shareholders.ST is rolling out a CDMA2000 fixed-wireless system that enables it to potentially re-enter the mobile sector. It supports broadband internet access using EV-DO technology. Libyas LAP Green acquired a majority stake in the company in late 2010, but the civil war in Libya has left the future of that investment hanging in the balance.

The mobile networks offer basic mobile data services using GPRS and EDGE technology. Third generation (3G) mobile services have not yet been introduced.

Chad still lacks a national backbone infrastructure and international fibre optic access to support efficient broadband services. All long-distance connections, national and international, are currently made via satellite. However, the World Bank-funded Central African Backbone (CAB) project is now laying the foundation for the development of a broadband market.

Market highlights:

One of the world’s most underdeveloped markets
Broadband market lacks international bandwidth and backbone network infrastructure
Additional US$30 million approved for Central African Backbone (CAB) fibre optic project ;
Almost all cell sites powered by diesel generators.

Estimated market penetration rates in Chad’s telecoms sector – end-2012
Market | Penetration rate
Mobile | 35%
Fixed | 0.4%
Internet | 2.3%
(Source: BuddeComm based on various sources)

Companies covered in this report:

Sotel Tchad (LAP Green)
TchadNet
Bharti Airtel (Zain)
Millicom (Tigo)
Tchad Mobile (Orascom)