Eritrea Telecommunications Report 2016
BMI View: By preventing international investors from entering the Eritrean telecoms market, there will beno significant boost to growth. Competition has proved vital to driving investment in infrastructure acrossSub-Saharan Africa, with major international players such as France Télécom, Vodafone andBharti Airtel competing with local and regional players such as MTN. BMI continues to believeinternational investment would bring long-term benefits to the market, extending networks to rural areasand lowering prices that would enable more Eritreans to participate in the telecoms market. A range ofadditional services should become available too such as telecare, e-education, m-banking and updates forfarmers, a key industry in the country's economy.
We estimate that the mobile market grew by only 10% to reach 457,000 in 2016.
Eritrea's fixed-line penetration rate remains very low even in 2015.
Eritrea's broadband penetration rate was considerably less than 1% at the end of 2015, with most internetaccess still based on dial-up connections.
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