Telecoms, Mobile and Broadband - Market Insights, Statistics and Forecasts - Mozambique

Telecoms, Mobile and Broadband - Market Insights, Statistics and Forecasts - Mozambique

Revised Telecom Act aimed at encouraging access to telecom infrastructure

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).

During the last two decades Mozambique's economy has shown consistently strong growth. The country's GDP was largely unaffected by the global economic crisis which has lingered for many economies since 2008. GDP growth ran at 7.3% in 2010 and is expected to increase to 8.4% for 2013.

The country was one of the first in the region to reform its telecom sector, which immediately followed the long civil war which ended in 1992. The mobile sector has experienced excellent growth rates since the introduction of competition in 2003 between Vodacom Mozambique and mCel, the incumbent mobile subsidiary of the national telco TDM. Given that mobile market penetration remains far below the African average, there is considerable room for further growth. This has been stimulated by the launch of commercial services from the third operator Movitel, which is backed by Vietnam's Viettel.

The government in 2013 drafted a revision of the 2004 Telecommunications Act, aimed at developing greater competition, and facilitating access to networks and infrastructure in a bid to reduce investment costs.

The mobile sector has grown rapidly in view of the poor fixed-line infrastructure, which has largely held back the market for internet services. The high cost of international bandwidth had long hampered internet use given the relatively high cost of access, though the landing of two international submarine fibre optic cables (Seacom

and EASSy) has reduced the cost of bandwidth and so led to drastic reductions in broadband retail prices.Cross-platform competition, with active ADSL, cable broadband, WiMAX, 3G mobile and limited Fibre-to-the-Premise (FttP) services, is also helping the market to develop. Further improvements can be expected from the ongoing rollout of a national fibre backbone networks by TDM and the mobile operators.

Estimated market penetration rates in Mozambique's telecoms sector end-2014
Market | Penetration rate
Mobile | 56%
Fixed | 0.3%
Internet | 7.9%
(Source: BuddeComm based on various sources)

Key developments:

Movitel's investment strategy leading to rapid subscriber gains; Mozambique joins the Alliance for Affordable Internet, aiming to provide broadband at less than 5% of average monthly income; Mobile Termination Rates reduced by 20%; stable mobile ARPU despite increased competition; fibre optic backbone network rollouts; developments in ADSL, Vodacom signs deal with Electricidade de Mocambique to market pre-paid top-up cards for electricity via the M-Pesa service; cable TV, WiMAX, EV-DO, 3G mobile; operator data to June 2014, ITU market data updates; recent market developments.

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
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 Interconnection
4.7 Universal service
4.8 Quality of service
4.9 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-Premises (FttP)
8.4 Wireless broadband
8.4.1 EV-DO
8.4.2 WiMAX
8.4.3 Mobile broadband
9. Mobile communications
9.1 Overview of Mozambique's mobile market
9.2 Third mobile licence
9.3 Spectrum auction
9.4 Mobile statistics
9.5 Major mobile operators
9.5.1 mCel
9.5.2 Vodacom Mozambique
9.5.3 Movitel
9.6 Mobile data services
9.7 Third generation (3G)
9.8 ARPU, Minutes of Use (MoU)
10. Forecasts
10.1 Forecasts mobile market 2014; 2017
10.2 Notes on scenario forecasts
11. Related reports
Table 1 Country statistics Mozambique 2014
Table 2 Fixed-line network statistics 2014 (e)
Table 3 Internet provider statistics 2014
Table 4 Internet and social media user statistics 2013 (e)
Table 5 Mobile statistics 2014 (e)
Table 6 National telecommunications authority
Table 7 Historic - Fixed lines in service and teledensity 1995 - 2004
Table 8 Fixed lines in service and teledensity 2005 - 2014
Table 9 TDM financial results 2006 - 2011
Table 10 international bandwidth 2001 - 2013
Table 11 Historic - Internet users and penetration rate 1996 - 2004
Table 12 Internet users and penetration rate 2005 2014
Table 13 Fixed-line broadband subscribers 2007 - 2014
Table 14 DSL broadband subscribers 2006 - 2014
Table 15 TDM ADSL pricing 2012 vs. 2011
Table 16 NetCabo cable broadband pricing 2012 vs. 2011
Table 17 TDM EV-DO broadband pricing 2012 vs. 2010
Table 18 Active mobile broadband subscribers 2010 - 2014
Table 19 Historic - Mobile subscribers and penetration rate 1997 - 2004
Table 20 Mobile subscribers and penetration rate 2005 - 2014
Table 21 mCel mobile subscribers 2012 - 2013
Table 22 Vodacom Mozambique financial results 2007 - 2010
Table 23 Vodacom Mozambique subscribers 2008 - 2014
Table 24 Vodacom Mozambique ARPU 2008 - 2014
Table 25 Movitel mobile subscribers 2012 - 2013
Table 26 mCel 3G prepaid pricing 2010-2012
Table 27 Vodacom 3G post-paid pricing 2010-2012
Table 28 Vodacom Mozambique ARPU 2008 - 2013
Table 29 Forecast mobile subscribers 2014; 2017
Chart 1 Fixed lines in service and teledensity 2005 2014
Chart 2 Internet users and penetration rate 2005 2014
Chart 3 Mobile subscribers and penetration rate 2005 - 2014

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