Senegal - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses
Senegal secures more licensed MVNOs in push for market competition
Senegal's economic growth has improved steadily in recent years, with GDP estimated to have grown 5.1% in 2015. This has translated into consistent growth in the telecom market, with the number of mobile subscribers having increased 2.6% in the first quarter of 2016 alone. Orange Group's local subsidiary Sonatel is the dominant player in both the fixed-line and mobile sectors, though there is effective competition in the mobile sector from Tigo Senegal and Sudatel's local unit Expresso, which have a 23% and 21% market share, respectively.
Competition in the fixed-line sector was introduced when Expresso launched services as the second national operator (SNO) in 2009. The new entrant initially chose CDMA2000 technology to serve both market segments but switched to GSM technology in 2010, including 3G/HSPA mobile broadband.
The licensing of new operators has not always been transparent in Senegal, with the licences of both Sentel and Sudatel were awarded under controversial circumstances. Sentel settled a four-year licence dispute with the government in August 2012.
The mobile market has prospered, helped in part by poor fixed-line infrastructure in some rural areas. Mobile penetration reached about 117% by mid-2016. A range of value-added services is available to subscribers, including mobile broadband access, which has become by far the dominant internet platform, accounting for about 98.5% of all internet accesses as of mid-2016.
Recent licensing developments will help propel the LTE sector. In June 2016 Sonatel secured a 17-year LTE licence (reduced from 20 years), as well as an extension to its fixed-line, 2G and 3G operating concessions (which had been due to expire in 2017) for no additional cost. The LTE licence includes the use of 10MHz of spectrum in the 1800MHz band and 10MHz in the 800MHz band. Sonatel must provide 70% population coverage within five years and 90% coverage within ten years.
Development of the internet market until 2007 was hampered by Sonatel's monopolistic pricing of bandwidth on the only high-capacity international submarine fibre optic cable serving the country. Despite this, broadband services in Senegal are relatively advanced, and a range of IP-based services including broadband TV (IPTV) and converged triple-play services are offered. Sonatel has progressively reduced its prices following the arrival of several competing international fibre optic submarine cables.
Senegal Internet Exchange Point (SENIX) is opened; Presidential decree blocks Tigo from cancelling deal to sell its local unit to Wari Group; Tigo and Sonatel inaugurate their Tier III data centres; Regulator grants more MVNOs licenses; Ministry of Commerce launches Made in Senegal' e-commerce platform; Regulator deactivates some five million unregistered SIM cards; Telecom regulators of Senegal, Guinea Conakry, Mali, Burkina Faso and Togo implement free roaming among networks within the countries; Digital Senegal 2016-2025 programs to cost XOF1,346 billion; ATOS Senegal replaces the State IT Agency (ADIE) to manage the 3,000km fibre network; Globacom commissions landing station for its Glo-1 cable for Senegal; Regulator prepares to revise the telecoms legislation to keep pace with ICT and technology changes; Tigo launches the Yone money transfer service, invests XOF115 billion in modernising and upgrading its HSPA+ mobile network and preparing for the migration to LTE; Rapid Communications sets up mobile remittance service in Senegal; Orange Senegal sets up a Network Operating Common Centre (GNOC) in Dakar to manage operations in Senegal, Mali, Guinea and Guinea Bissau; Regulator sets up new body to monitor QoS of telecom services; Sonatel signs agreement to provide free internet services to schools, sells domestic mobile tower portfolio; Ericsson takes over operational management of Tigo's mobile networks; Report update includes the regulator's market data to March 2017, operator data to Q1 2017, recent market developments.
Market penetration rates in Senegal's telecoms sector 2017 (Mar) Penetration of telecoms services: | Penetration Fixed-line telephony | 1.9% Fixed broadband | 0.7% Mobile SIM (population) | 103%