BROADBAND ACCESS ACROSS WEST AFRICA

Transcription

1 BROADBAND ACCESS ACROSS WEST AFRICA A report on the state of Broadband access in all West African countries Prepared by, OSHONE ANAVHE [mcanavhe@yahoo.com] & ANUOLUWAPO ISIAKA [anu.officials@gmail.com] Final report completed as part of Paradigm Initiative Nigeria s ICT Policy Internship program. For more, contact info@pinigeria.org

2 Broadband Access across West Africa In general, broadband refers to telecommunication in which a wide band of frequencies is available to transmit information. Because a wide band of frequencies is available, information can be multiplexed and sent on many different frequencies or channels within the band concurrently, allowing more information to be transmitted in a given amount of time (much as more lanes on a highway allow more cars to travel on it at the same time). Affordable broadband connectivity, services and applications are essential to modern society, offering widely recognized social and economic benefits. It ensures a wider access to internet services with cheaper rates. Map showing countries in West Africa Western Africa, lying on the western most region of Africa, is bordered by the Atlantic Ocean in the south and west and Sahara desert in the north. It includes 15 countries over an area of 5 million sq. kms. The 15 countries are namely: Nigeria, Ghana, The Gambia, Senegal, Guinea, Guinea Bissau, Sierra Leone, Liberia, Cape Verde, Cote D Ivoire, Togo, Benin, Mali, Burkina Faso and Niger. This report focuses on Broadband access across West Africa taking specific reference to the countries across the region research/country- case- studies/

3 NIGERIA Nigeria has recorded a 200% growth in Internet users between 2009 and 2013, overtaken South Africa to become Africa s largest econ0my and its population is expected to surpass that of the US by In numbers, this translated as 55 million internet users in 2012, same with the number of internet users in the UK. By 2013, Nigeria Internet users had grown by 14%, to make up about 62.4 million users with the UK seating at about 57 million (DigitXplus, 2014). This seats Nigeria at the top of the ladder in terms of growth in number of Internet Users in Africa The World Bank and The International Telecommunications Union (2013) report on Internet Access details how Nigeria with a population of Million has 33% Internet Users, 10% Mobile Broadband subscribers with a Gross domestic product per capita of $ Simply put, broadband remains unaffordable for the vast majority of Nigerians. Fixed- line broadband subscriptions cost an average of 39 percent of average income, with the same figure for mobile broadband packages hovering around 13 percent. Yet these figures do not reveal the true scale of the challenge. In 2010, around 80 percent of Nigerians earned $2 a day or less $730 per year a little more than half of the 2012 national average income of $1,440. For these people living below the poverty line, affordable access to the Internet remains even further out of reach. 1 Reflecting the high cost of broadband in the country, in 2013 Nigeria was ranked 142nd out of 169 countries by the International Telecommunication Union (ITU) for the affordability of a fixed- broadband connection and 99th out of 126 countries for a prepaid 500MB mobile broadband connection. 1 Mobile broadband prepaid handset prices (500MB) as % of GNI P.C. 2012

4 GHANA At present, affordable broadband remains a dream for the majority of Ghana s 25 million inhabitants. At the end of 2012, the ITU reported that only 17.1 percent of Ghanaians used the Internet. Another 2012 survey (Research ICT Africa) provides insights as to why. Cost was cited as the primary reason for not accessing the Internet, with almost 60 percent of respondents reporting that they found the Internet expensive to use. Other barriers centered on lack of local peer users and content. A deeper analysis of broadband services in Ghana confirms that they are relatively expensive and, therefore, remain a luxury item for many Ghanaians. According to the ITU, a prepaid 500MB mobile handset mobile broadband package in Ghana costs 9 percent of Gross National Income (GNI) per capita, almost double the UN s 5 percent target, and ranking Ghana 96 out of 126 countries. A prepaid 1GB Internet dongle package costs 11.3 percent of GNI per capita, which gives Ghana a rank of 90 out of 124 countries. In addition, GNI per capita is often viewed as a quick and dirty metric, and it is important to remember that many Ghanaians do not earn close to the official GNI per capita figure of $1,410 per annum. In fact, in 2006, 51.8 percent of Ghanaians lived on $2 per day or less. Recent figures on those living below the poverty line are not available, and whilst the number of Ghanaians living on less that $2 per day will have fallen over the last eight years, it is certain that for many Ghanaians, Internet and broadband services remain prohibitively expensive. 1 ITU Mobile broadband prepaid handset prices (500MB) as 5 o GNI P.C. 2012

5 THE GAMBIA provider. 5 Gambia s telecoms sector has four mobile networks with a fifth one (Globacom) preparing to launch. Mobile market penetration is well above the African average. The national telco, Gamtel competes in the mobile sector through its subsidiary Gamcel against Africell and Comium, both with Lebanese backing, and QCell which is affiliated with one of the country s leading ISPs. Gamtel is the sole fixed- line The launch of a second 3G mobile broadband service in early 2012 has brought more competition to the internet sector where ADSL, WiMAX and EV- DO wireless broadband offerings are also available. The landing of the first international submarine fibre- optic cable in the country in 2011, to be followed by a second one in the near future, will dramatically lower the cost of international bandwidth. 5 The value for fixed broadband Internet subscribers in The Gambia was as of Over the past 10 years, the value for this indicator has fluctuated between in 2011 and 0.00 in Fixed broadband Internet subscribers (per 100 people) The value for fixed broadband Internet subscribers (per 100 people) in The Gambia was 0.02 as of As the graph below shows, over the past 10 years this indicator reached a maximum value of 0.02 in 2011 and a minimum value of 0.00 in The 2013 report by International Telecommunications Union (ITU) from The Gambia Public Utilities Regulatory Authority in The Gambia put Fixed (wired) Broadband Subscription at 438 and 0.02 per 100 inhabitants. 3

6 BENIN In Benin, through June 30, 2012, Internet park was estimated at 375,919 with a rate of 4.08% penetration with a distribution of 89% for mobile networks 11% for the fixed telephone network. As for the Internet subscription park on the network of the incumbent operator, it is 40,096 at June 30, 2012 against 37,949 at December 31, 2011, an increase of 6%. While in the mobile, it recorded a subscriber base estimated at 335,883 in June 2012 against 242,690 in December 2011, an increase of 38%. The Minister concludes that although these data have changed, "the rate of Internet penetration is still very low compared to the potential of the country," hence his conclusion that "considerable effort is still needed to allow more number of citizens to have access to broadband Internet. " After the official launch ceremony, Dr. Albert Njoume EKANGO of Detecon Consulting, representing the company in charge of carrying out the study, conducted a brief detailed explanation of this study, the work will last nine months. The mobile telephony sector enjoys effective competition between Libercom, South Africa s MTN, Etisalat s Moov, Globacom s Glo Mobile, and Bell Benin. Competition among these players has pushed market penetration above 90% by mid Although fixed- line internet services have been available in Benin since 1995, access is limited to a small proportion of the population. By mid- 2013, fixed- line internet represented only about 10% of all accesses: most connectivity is through the mobile networks. The country s first license for 3G and 4G mobile broadband services was awarded in early In May 2013 the government launched a tender for Universal Service Licenses. In the following month licenses were awarded to MTN and Etisalat s Moov. The licenses are technology neutral, enabling the operators to offer services based on 3G, LTE and mobile WiMAX technologies. The vast majority of mobile subscribers are prepaid: by mid there were about 35,000 contract subscribers, representing only about 0.4% of the total subscriber base. 5 The ITU reports from the Autorité Transitoire de Régulation des Postes et Télécommunications in Benin and put Fixed (wired) Broadband Subscription at 4,363 and 0.04 per 100 inhabitants in

7 COTE D IVOIRE During the last few years, Cote d Ivoire has benefited from strong economic growth with GDP having grown by 9.8% in 2012 before slowing to 8% in 2013 and an expected 8.2% for Although, it has two competing fixed network operators, the country's telecommunications sector is dominated by mobile telephony, with South Africa s MTN and France s Orange leading the market. The launch of three additional ore GSM networks between 2006 and 2008 Moov (owned by Etisalat of the UAE until it was sold to Maroc Telecom in May 2014), KoZ (operated by the Lebanese Comium Group) and Oricel Green Network (backed by Libya's LAP Green) has accelerated market growth and pushed mobile penetration well above the African average. Two additional operators have been licensed and are preparing to enter the market, but problems with frequency spectrum allocation have caused continuing delays. Some consolidation can be expected in this crowded market in the future. The internet and broadband sectors have remained underdeveloped. This is partly the legacy result of high international bandwidth costs caused by the incumbent having monopoly access to the only international fibre optic submarine cable serving the country. This was addressed in recent years, with the landing of a second cable in November 2011 and with up to three more cables expected to land in the near future. Significant reductions in retail pricing for some of the existing ADSL, WiMAX and EV- DO wireless broadband services can already be observed. The biggest game changer, however, has been the introduction of 3G mobile services. Following years of delays, the first 3G license was finally awarded in March 2012 and the first 3.5G mobile broadband service has been launched, offering up to 42Mb/s using HSPA+ technology. The extensive geographical reach of the mobile networks will now make the internet accessible to a much wider part of the population. With a national backbone network including more than 20,000km of fibre optic cable, Cote d'ivoire is in a good position to translate these improvements in competition and infrastructure into a booming broadband market and digital economy. 5 Estimated market penetration rates in Cote d Ivoire s telecoms sector end (e) Market Penetration rate Mobile 88% Fixed 1% Internet 5% Officially, ITU put the Fixed (wired) Broadband Subscription by Autorité de Régulation des Télécommunications / TIC in Cote D Ivoire estimate at 56,281and 0.28 per 100 habitants in

8 SENEGAL Senegal has benefited from solid economic growth since the 1990s. This has translated into consistent growth in the telecom market, with the dominant player Sonatel, part- owned by France Telecom and branded as Orange, receiving effective competition from a small number of operators, particularly in the mobile services sector. Sonatel manages one of the most efficient telecom networks in West Africa and offers some of the lowest retail and wholesale prices in the region, although they are still high by global standards. The company is also the market leader in the mobile sector which it has shared with Millicom s Sentel GSM (later rebranded Tigo) since Competition in the fixed- line sector was introduced when Sudan s Sudatel launched as the second national operator (SNO) in 2009 under the name Expresso. Its licence also includes the country s third mobile concession. The new entrant initially chose CDMA2000 technology to serve both market segments but switched to GSM technology in 2010, including 3G/HSPA mobile broadband. Mobile market penetration reached about 85% in mid- 2013, and Average Revenue Per User (ARPU) is relatively high. A wide range of value- added services is available to subscribers, including mobile broadband access, which has become by far the dominant internet access platform. 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. 5 Estimated market penetration rates in Senegal s telecoms sector end Market Penetration rate Mobile 89% Fixed 2.6% Internet 20% Officially, ITU put the Fixed (wired) Broadband Subscription estimate by Autorité de Régulation des Télécommunications et des Postes (ARTP) in Senegal at 106,733 and 0.76 per 100 habitants in

9 GUINEA Guinea in West Africa has vast mineral resources yet remains one of the poorest countries in the world. With five competing mobile networks, its telecommunications sector has shown triple- digit growth rates for three years in a row following the entry of two world- class international operators, MTN and Orange. The other competitors are Intercel, Cellcom and Lagui, the mobile unit of the national fixed- line operator, Sotelgui. Following the exit of Telekom Malaysia in 2008, Sotelgui has being prepared for renewed privatisation, creating an attractive opportunity for a strategic investor. Despite the rapid growth in the mobile sector, penetration remains below the African average, while the country s fixed- line and internet markets are virtually untapped. Broadband services are still very limited and expensive. The landing of the first international fibre optic submarine cable in 2012, and the setting up of an IXP in mid- 2013, will go far to help the nascent broadband market develop by reducing the cost of internet bandwidth and improving the reliability of infrastructure. The country slipped into a mild recession in 2009, but stable GDP growth of around 5% per year is expected from 2014, possibly reaching up to 20% in 2015 and Estimated market penetration rates in Guinea s telecoms sector end Market Penetration rate Mobile 67% Fixed 0.1% Internet 1.3% Officially, the Fixed (wired) Broadband Subscription estimate by ITU was at 800 and 0.01 per 100 habitants in

10 TOGO Some 5.4 percent of the population was able to access the internet in 2010, a relatively high penetration rate by regional standards. In an improvement over the 2005 presidential election, access to the internet was unrestricted throughout 2010, with no reported cases of content blocking. 5 Fixed broadband Internet subscribers The value for fixed broadband Internet subscribers in Togo was 4, as of Over the past 10 years, the value for this indicator has fluctuated between 4, in 2011 and 0.00 in Fixed broadband Internet subscribers (per 100 people) The for fixed broadband Internet subscribers (per 100 people) in Togo was 0.08 as of As the graph below shows, over the past 10 years this indicator reached a maximum value of 0.08 in 2011 and a minimum value of 0.00 in Officially, ITU put the Fixed (wired) Broadband Subscription estimate by the Autorité de Règlementation des secteurs de Postes et Télécommunications in Togo at 6,915 and 0.10 per 100 habitants in

11 SIERRA LEONE Following more than a decade of civil war, Sierra Leone has since 2002 enjoyed stability and rapid economic growth. The country s traditional telecommunications infrastructure has suffered damage and neglect, but the mobile sector has experienced excellent growth with competition between five GSM networks. Some consolidation has taken place when one network ceased operations and the market s number two acquired the number four. Additional mobile licenses have been issued but not all operators have launched services. In addition, the state- owned fixed- line incumbent has entered the mobile market with a CDMA2000 1x network which it uses to provide fixed- wireless access and broadband internet services following an upgrade to the EV- DO standard, making it the first 3G mobile network in the country. Other 3G services based on HSPA technology were launched in 2011 and A high number of complaints to the regulator is forcing the mobile operators to improve their services and network capabilities. In this area they are competing with a significant number of wireless broadband network operators that have emerged as providers of converged internet and VoIP telephony services. The mobile sector remains hampered by high prices and unreliable networks. Several operators have been fined during the last two years over their network performance, while competition has been stymied by continuing legal disputes which have prevented Ambitel from launching commercial services. Sierra Leone depended entirely on satellites for international connections until February 2013 when it was connected to the ACE submarine cable. This has considerably improved bandwidth capabilities and is expected to bring down the price of broadband which has hitherto been extremely expensive. 5 Estimated market penetration rates in Sierra Leone s telecoms sector end Market Penetration rate Mobile 38% Fixed 0.3% Internet 1.6%

12 NIGER Fixed broadband Internet subscribers The value for fixed broadband Internet subscribers in Niger was 1, as of Over the past 10 years, the value for this indicator has fluctuated between 1, in 2011 and 0.00 in The value for fixed broadband Internet subscribers (per 100 people) in Niger was 0.01 as of As the graph below shows, over the past 10 years this indicator reached a maximum value of 0.01 in 2011 and a minimum value of 0.00 in Fixed broadband Internet subscribers (per 100 people). Officially, ITU put the fixed (wired) Broadband Subscription estimate at and 0.04 per 100 habitants in

13 CAPE VERDE Fixed broadband Internet subscribers The value for fixed broadband Internet subscribers in Cape Verde was 21, as of Over the past 16 years, the value for this indicator has fluctuated between 21, in 2011 and 0.00 in Fixed broadband Internet subscribers (per 100 people) The value for fixed broadband Internet subscribers (per 100 people) in Cape Verde was 4.34 as of As the graph below shows, over the past 16 years this indicator reached a maximum value of 4.34 in 2011 and a minimum value of 0.00 in Officially, ITU put the Fixed (wired) Broadband Subscription by Agencia Nacional das Comunicaçoes in Cape Verde estimate at 21,212 and 4.25 per 100 habitants in

14 LIBERIA Fixed broadband Internet subscribers After more than a decade of civil war which destroyed much of its infrastructure, Liberia became a prime example of an almost entirely wireless telecommunications market. Internet services are available from a number of wireless ISPs. The high cost and limited bandwidth of satellite connections means that most service offerings remain expensive and are below recognized broadband speeds. 5 The value for fixed broadband Internet subscribers in Liberia was as of Over the past 10 years, the value for this indicator has fluctuated between in 2010 and 0.00 in Fixed broadband Internet subscribers (per 100 people) The value for fixed broadband Internet subscribers (per 100 people) in Liberia was 0.00 as of As the graph below shows, over the past 10 years this indicator reached a maximum value of 0.00 in 2010 and a minimum value of 0.00 in

15 BURKINA FASO Fixed broadband Internet subscribers The value for fixed broadband Internet subscribers in Burkina Faso was 14, as of Over the past 10 years, the value for this indicator has fluctuated between 14, in 2011 and 0.00 in Fixed broadband Internet subscribers (per 100 people) The value for fixed broadband Internet subscribers (per 100 people) in Burkina Faso was 0.08 as of As the graph below shows, over the past 10 years this indicator reached a maximum value of 0.08 in 2010 and a minimum value of 0.00 in Officially, ITU put the Fixed (wired) Broadband Subscription by Autorité de Régulation des Communications Électroniques et des Postes (ARCEP) in Burkina Faso at 12,959 and 0.08 per 100 habitants for

16 MALI Fixed broadband Internet subscribers The value for fixed broadband Internet subscribers in Mali was 2, as of Over the past 10 years, the value for this indicator has fluctuated between 3, in 2007 and 0.00 in Fixed broadband Internet subscribers (per 100 people) The value for fixed broadband Internet subscribers (per 100 people) in Mali was 0.01 as of As the graph below shows, over the past 10 years this indicator reached a maximum value of 0.02 in 2007 and a minimum value of 0.00 in Officially ITU put the Fixed (wired) Broadband Subscription by Autorité Malienne de Régulation des Télécommunications/TIC et Postes (AMRTP) in Mali at 2,909 and 0.02 per 100 habitants for