New Report: Malawi - Telecoms, Mobile and Broadband - Market Insights and Statistics

Executive summary

Malawi's telecom sector pricing among the most expensive in the region

This report provides a comprehensive overview of trends and developments in Malawi's telecommunications market. Subjects covered include:

Key statistics;

Market and industry overviews;

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;

Mobile voice and data markets;

Internet and broadband development and growth;

Convergence (voice/data, fixed/wireless/mobile);

Mobile data services, including 3G;

Average Revenue per User (ARPU).Although Malawi is one of the world's least developed countries, GDP growth has been strong in recent years, with the exception of 2012 when growth fell to 1.9%. GDP growth recovered in 2013, reaching 5.2%, and was expected to have increased to 5.7% for 2014. Telcos have been affected by the currency devaluation imposed in mid-2013, which has delayed their ability to fund network upgrades. In addition, the government in mid-2013 instituted a tax on internet services, the additional cost of services being passed on to consumers.

Mobile penetration remains very low in comparison to the African average. This allows for considerable opportunities for further growth. The market remains a duopoly between Bharti Airtel (formerly Zain) and Telecom Networks Malawi (TNM), given the failure of the third and fourth mobile operators, G-Mobile and Celcom Malawi, to launch services.

To encourage additional market competition, the government has followed in the footsteps of several of its neighbours and introduced a converged licensing regime which allows the two fixed-line operators, Malawi Telecommunications (MTL) and Access Communications (ACL) to enter the mobile market as well. Both operate CDMA-based fixed-wireless networks which support full mobility and broadband access using EV-DO technology.

The internet sector is reasonably competitive with 22 licensed ISPs, though the limited availability and high cost of international bandwidth has held back growth and has kept broadband access prices among the highest in the region. DSL services are available, and several ISPs continue to extend their WiMAX wireless broadband footprints. The two incumbent mobile networks have launched third generation (3G) mobile services based on UMTS/HSPA technology.

A national fibre backbone is being implemented, and the country recently gained access to international submarine fibre optic cables for the first time when a transit link via neighbouring countries was completed. Provided a suitable regulatory regime is put in place, this will bring down the cost of international bandwidth and deliver a boost to the broadband market.

Estimated market penetration rates in Malawi's telecoms sector-end - 2014

Market Penetration rate

Mobile 36%

Fixed 1.9%

Internet 6.1%

(Source: BuddeComm based on various sources)

Key developments:

Regulator proposes Universal Access Fund (UAF) to deliver mobile services to rural areas, announces plans to introduce SIM card registration by the beginning of 2015, commissions addition frequency monitoring equipment, develops broadband plan with ITU technical assistance; TMN reports strong revenue recovery; Airtel Money registers over 500,000 users; converged licensing regime expected to boost competition; Airtel Malawi receives ten-year licence renewal; national fibre rollout; international fibre access helping develop the broadband market; white space spectrum trials to increase broadband availability; SimbaNeET contracted to build and operate a fibre-optic cable linking Lilongwe with Tanzania; recent market developments.

Companies covered in this report:

Malawi Telecommunications Ltd (MTL); Access Communications Ltd (ACL); Bharti Airtel (Zain, Celtel); Telekom Networks Malawi (TNM); G-Mobile (GAIN); Celcom Ltd; Escom; MalawiNet; MTL Online; Skyband;Globe Internet; Broadmax; Burco.

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