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Vanuatu - Telecoms, Mobile and Broadband - Market Insights and Statistics

Vanuatu - Telecoms, Mobile and Broadband - Market Insights and Statistics

Vanuatu's telecom sector after Cyclone Pam

Vanuatu's telecom market is small but has considerable growth potential, particularly in the internet market, which is underdeveloped. As in other Pacific Island nations, one of the biggest challenges in Vanuatu is its remoteness and the dispersion of its population across numerous islands.

Telecom Vanuatu Ltd (TVL) is the only provider of fixed-line telephony, but in the mobile market, it competes with Digicel Vanuatu. Following Digicel's market entry in 2008, the number of mobile subscriptions shot up dramatically, thanks to wider coverage and reduced prices. Mobile subscriptions peaked in 2010, after which they dropped, probably because after trialling both service providers, some customers decided to stay with only one. The fluctuating trend should cease as market competition stabilises, but 2015 may see another drop following the economic recession caused by Cyclone Pam.

Cyclone Pam was the most devastating cyclone ever to hit the Southern Hemisphere. It crippled Vanuatu's infrastructure and damaged 90% of the nation's buildings. Yet, surprisingly, few people lost their lives. One of the main reasons for the low death toll, according to Vanuatu's telecom regulator, was the remarkable effort made by TVL and Digicel to keep the population informed. TVL and Digicel used an SMS warning system to alert people of the approaching cyclone. They sent free text messages to all their customers, before and during the cyclone, containing condensed versions of warnings from the national meteorology service. For many in the outer islands, this was the only source of information.

The impact of Cyclone Pam is expected to cause an economic recession in 2015, and may continue to be felt for some years to come. For the country's future, international connectivity is a key issue. A new submarine cable, the Interchange Cable Network 1 (ICN1), was declared Ready-For-Service in January 2014, linking Vanuatu with Fiji and the high capacity Southern Cross cable between Sydney and USA. However, ICN1 will only offer relief to the capital city, leaving the many scattered islands with insufficient bandwidth. In order to provide reliable broadband access for the whole population, satellite solutions will need to be adopted such as the ones offered by O3b and Kacific.

Key telecom parameters 2012 - 2014
Sector | 2012 | 2013 | 2014 (e)
Subscribers to telecoms services:
Fixed-line telephony | 4,800 | 5,500 | 6,000
Mobile telephony | 146,100 | 127,200 | 135,000
(Source: BuddeComm)

Key developments:

The telecom regulator has been holding public consultations on spectrum for fixed telecoms services, mobile broadband, and LTE.
The government has approved a National ICT Policy.
WanTok Network Ltd has launched broadband in Port Vila over a 4G LTE TDD network.
A second submarine cable, ICN2, is scheduled to be Ready-For-Service in June 2016.
Submarine cable system ICN1 has initial capacity is 20Gb/s, upgradable to 1.28T/s, while ICN2 will have an initial capacity of 40Gb/s, upgradable to 1.2Tb/s.
In September 2014, Vanuatu was one of 11 island nations to became the recipient of an agreement between the ITU and satellite company Kacific under which the latter would establish 55 e-centres in remote islands of the Pacific region.

Companies mentioned in this report

Telecom Vanuatu Ltd (TVL), Digicel Vanuatu, Interchange Ltd, WanTok Network, Telsat Broadband, Incite Technology at Work, Spim Ltd, Global Telecom Pacific Ltd, Kacific, O3b, Hawaiki Cable Ltd.

1. Executive summary
2. Key statistics
3. Country overview
4. Telecommunications market
4.1 Overview of Vanuatu's telecom market
5. Regulatory environment
5.1 Background
5.2 Regulatory projects
5.3 Regulatory authority
5.3.1 Telecommunications and Radiocommunications Regulator (TRR)
5.4 Privatisation of Telecom Vanuatu
5.5 Liberalisation
5.6 National ICT Policy
5.7 Universal Access Policy (UAP)
5.8 Market dominance
6. Fixed network operators
6.1 Telecom Vanuatu Ltd
7. Telecommunications infrastructure
7.1 National telecom network
7.2 International infrastructure
7.2.1 Connecting the Pacific islands
8. Broadband access market
8.1 Overview
9. Mobile communications
9.1 Overview of Vanuatu's mobile market
9.2 Major mobile operators
9.2.1 Telecom Vanuatu Ltd
9.2.2 Digicel Vanuatu
10. Related reports
Table 1 Country statistics 2014
Table 2 Telephone network statistics 2014
Table 3 Internet user statistics 2014
Table 4 Fixed broadband statistics 2014
Table 5 Mobile statistics 2014
Table 6 National telecommunications authority
Table 7 Evolution of GDP in Vanuatu 2000 - 2016
Table 8 Fixed lines in service and teledensity 1997 - 2015
Table 9 Internet users and user penetration rate 2000 - 2015
Table 10 Fixed broadband subscribers and penetration rate 2005 - 2015
Table 11 Mobile internet subscribers and penetration 2011 - 2015
Table 12 Mobile subscribers and penetration 2002 - 2015
Chart 1 Mobile market evolution 2004 2015
Exhibit 1 Telecommunications licences
Exhibit 2 Telecom Vanuatu at a glance

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