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Madagascar - Telecoms, Mobile, Broadband and Forecasts

Attention: There is an updated edition available for this report.

Mobile ARPU rises as 3G broadband services gain traction

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

Subjects covered include:

Key statistics;
Market and industry overviews;
The impact of the global economic crisis;
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;
Internet and broadband development and growth;
Convergence (voice/data, fixed/wireless/mobile);
Mobile data services, including 3G.

Madagascar’s exposure to the global economic crisis was amplified by political instability following a controversial change of government in 2009. The economy has remained weak since then which has led to weaker subscriber growth in the telecoms sector, reduced consumer spending and, as a consequence, intensified price competition between the three GSM mobile network operators – Orange, Bharti Airtel (formerly Zain) and Telma, the incumbent telco. A fourth mobile operator, Madamobil, launched a CDMA-based network in 2010 but its licence was revoked in 2012. GDP growth is currently expected to steadily rise back to levels of around 5% by 2016/17, but this will in part depend on the outcome of controversial elections in 2013. However, plans to exploit and export crude oil, gas and other natural resources may deliver a boost to the economy.

Positive developments in the internet and broadband sector have begun 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.

A national fibre backbone is being implemented connecting the major cities. Wireless broadband access networks are being rolled out, enabling converged voice, data and entertainment services. The launch of third generation (3G) 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. Major investments have been made, the number of fixed lines has multiplied, albeit from a very low base. ADSL2+ broadband services have been introduced and the decline in fixed-line revenue has been successfully reversed. Despite these positive developments, the national telco is considering various divestiture options.

Penetration rates in all market sectors are still below African averages, promising excellent growth potential.

Market highlights:

2013 elections crucial for political stability and economic growth;
Mobile ARPU rises as 3G broadband services gain traction;
Fourth mobile licence revoked;
Lower international bandwidth costs lead to retail broadband price cuts;
National fibre rollout continues;
National telco considers divestiture options.

Estimated market penetration rates in Madagascar’s telecoms sector – end 2013
Market | Penetration rate
Mobile | 48%
Fixed | 1.5%
Internet | 2.5%
(Source: BuddeComm based on various sources)

Companies covered in this report:

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

1. Executive summary
2. Key statistics
2.1 Country overview
3. Telecommunications market
3.1 Market analysis 2013
4. Regulatory environment
4.1 Telecommunications reform
4.2 National ICT Policy
4.3 Regulatory authority
4.3.1 OMERT
4.4 Universal Service Fund
5. Fixed network operators in Madagascar
5.1 Telecom Malagasy (Telma)
5.1.1 Privatisation
5.1.2 Network infrastructure
5.1.3 National fibre optic backbone
5.2 Gulfsat Madagascar
6. Fixed-line statistics
7. International infrastructure
8. Internet market
8.1 Overview of the internet in Madagascar
8.1.1 Internet statistics
8.2 Public internet access locations
8.3 Data licensees
8.4 Madagascar’s ISP market
8.4.1 Telma Global Net (DTS, Moov)
8.4.2 Blueline
8.4.3 Other ISPs
9. Broadband market
9.1 ADSL
9.2 WiMAX
9.3 WiFi
9.4 EV-DO
9.5 Broadband via satellite
9.6 Voice over internet protocol (VoIP)
9.7 Triple/Quad play
10. Mobile communications
10.1 Overview of Madagascar’s mobile market
10.1.1 Mobile statistics
10.2 Major mobile operators
10.2.1 Bharti Airtel (formerly Madacom, Zain/Celtel)
10.2.2 Orange Madagascar (formerly SMM)
10.2.3 Telma Mobile
10.2.4 Madamobil
10.3 Mobile handsets
10.4 Mobile data services
10.5 Third generation (3G)
10.6 Mobile money transfer, m-banking
10.7 Satellite mobile
11. Forecasts
11.1 Forecasts – mobile market – 2014; 2017
11.2 Notes on scenario forecasts
12. Related reports
Table 1 – Country statistics Madagascar – 2013
Table 2 – Fixed-line network statistics – 2013
Table 3 – Internet provider statistics – 2013
Table 4 – Internet user statistics – 2013
Table 5 – Mobile statistics – 2013
Table 6 – National telecommunications authority
Table 7 – Fixed lines in service and teledensity – 2000 - 2013
Table 8 – Internet users and penetration rate – 2000 - 2013
Table 9 – Internet KPIs: international internet bandwidth, traffic and revenue – 2007 - 2011
Table 10 – Mobile subscribers and penetration rate – 2000 - 2013
Table 11 – Zain Madagascar financial data before takeover – 2006 - 2009
Table 12 – Orange Madagascar subscribers and ARPU – 2007 - 2013
Table 13 – Forecast – mobile subscribers – 2014; 2017
Chart 1 – Mobile subscribers in Madagascar – 2002 - 2013

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