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Mozambique - Telecoms, Mobile, Broadband and Forecasts

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

Third mobile network benefits from low market penetration rate

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

Subjects covered include:

One of the highest growth potential telecom markets in Africa;
Key statistics;
Market and industry overviews;
Government policies affecting the telecoms industry;
Market liberalisation and regulatory issues;
The impact of the global economic crisis;
Telecoms operators – privatisation, IPO, acquisitions, new licences;
Major players (fixed, mobile and broadband);
Infrastructure development;
Mobile voice and data markets, including 3G;
Average revenue per user trends and analysis;
Internet and broadband development and pricing;
The impact of the country’s first international submarine fibre optic cables;
Convergence (voice/data, fixed/wireless/mobile).

Two decades of peace and radical reforms have transformed Mozambique into one of the fastest and most consistently growing economies in the world. It escaped the global economic crisis with barely a dent in its annual GDP growth which is expected to stay above 7%.

The country was one of the first in the region to reform its telecommunications landscape, immediately after a long civil war ended in 1992. The mobile sub-sector has experienced excellent growth rates following the introduction of competition in 2003 between Vodacom Mozambique and mCel, the incumbent mobile subsidiary of the national telco, TDM. However, market penetration is still well below the African average. A third network backed by Vietnams Viettel, Movitel entered the market in 2011.

The government is intent on introducing competition to the fixed-line sector as well, but it is hesitating to privatise TDM. All other services are open to competition, subject to licensing by the industry regulator, INCM.

Internet usage in the country has been hampered by the inadequate fixed-line infrastructure and the high cost of international bandwidth, but this market sector is now accelerating following the introduction of various kinds of broadband services including ADSL, HFC cable modems, WiMAX, 3G mobile and even Fibre to the Home (FttH). The landing of two international submarine fibre optic cables in the country (Seacom and EASSy) has lowered the cost of bandwidth which has already led to drastic reductions in broadband retail prices. Further improvements can be expected from the ongoing rollout of a national fibre backbone networks by TDM and the mobile operators.

Market highlights:

Third mobile network benefits from low penetration rate;
Strong ARPU performance despite increased competition;
Fibre optic backbone network rollouts;
Pricing comparison of all major broadband services (ADSL, cable TV, WiMAX, EV-DO, 3G mobile);
Analysis of broadband price changes due to international fibre.

Estimated market penetration rates in Mozambique’s telecoms sector – end 2013
Market | Penetration rate
Mobile | 49%
Fixed | 0.4%
Internet | 7.4%
(Source: BuddeComm based on various sources)

Companies covered in this report:

Telecomunicações De Moçambique (TDM); Vodacom Mozambique; mCel (TDM); Movitel (Viettel); Teledata (TDM); TV Cabo; Intra; Tropical Web, Seacom.

1. Executive summary
2. Key statistics
3. Telecommunications market
3.1 Market analysis 2012 and outlook 2013
4. Regulatory environment
4.1 Telecommunications Law 1992
4.2 Basic Telecommunications Law 2004
4.3 Regulatory authority
4.3.1 Instituto Nacional das Comunicações de Moçambique (INCM)
4.4 National Commission on Information
4.5 Telecom sector liberalisation in Mozambique
4.6 Third mobile licence
4.7 Interconnection
4.8 Universal service
4.9 Quality of service
4.10 SIM card registration
5. National fixed-network operator
5.1 TDM
5.1.1 Fixed-line statistics
5.1.2 Subsidiaries
5.1.3 Privatisation
5.1.4 Network infrastructure
5.1.5 National fibre backbone
5.1.6 Tariffs
5.1.7 Financial results
6. International infrastructure
6.1 Satellite
6.2 Terrestrial microwave and fibre
6.3 Submarine fibre
7. Internet market
7.1 Overview
7.1.1 Internet statistics
7.2 Internet connectivity
7.3 Public internet access locations
7.4 Cost of personal computers
7.5 Mozambique’s ISP market
7.5.1 Teledata
7.5.2 Intra (Internet Solutions)
7.5.3 Tropical Web
7.6 Mozambique Internet Exchange Point (MOZ-IX)
7.7 E-government
8. Broadband market
8.1 ADSL
8.2 Broadband via cable TV (TV Cabo)
8.3 Fibre to the Home (FttH)
8.4 Wireless broadband
8.4.1 EV-DO
8.4.2 WiMAX
9. Mobile communications
9.1 Overview of Mozambique’s mobile market
9.2 Mobile statistics
9.3 Major mobile operators
9.3.1 mCel
9.3.2 Vodacom Mozambique
9.3.3 Movitel
9.4 Mobile data services
9.5 Third generation (3G)
9.6 ARPU, Minutes of Use (MoU)
10. Forecasts
10.1 Forecasts – mobile market – 2014; 2017
10.2 Notes on scenario forecasts
11. Related reports
List of Tables and Charts
Table 1 – Country statistics Mozambique – 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 – 1995 - 2013
Table 8 – TDM financial results – 2006 - 2011
Table 9 – Internet users and penetration rate – 1996 - 2013
Table 10 – TDM ADSL pricing – 2012 vs. 2011
Table 11 – NetCabo cable broadband pricing – 2012 vs. 2011
Table 12 – TDM EV-DO broadband pricing – 2012 vs. 2010
Table 13 – Mobile subscribers and penetration rate – 1997 - 2012
Table 14 – Vodacom Mozambique financial results – 2007 - 2010
Table 15 – mCel 3G prepaid pricing – 2010-2012
Table 16 – Vodacom 3G post-paid pricing – 2010-2012
Table 17 – Vodacom Mozambique ARPU – 2004 - 2012
Table 18 – Forecast – mobile subscribers – 2014; 2017
Chart 1 – Mobile subscribers and penetration rate – 2002 - 2012

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