Madagascar - Telecoms, Mobile and Broadband - Statistics and Analyses

Gulfsat licensed as Madagascar's second backbone operator

Telecom services in Madagascar have benefited from intensifying competition between the main operators, including Orange Madagascar, Airtel and the incumbent telco Telma. A fourth mobile operator, Gulfsat Madagascar, operating under the Blueline banner, has its own mobile network and in mid-2020 was licensed to build its own fibre network, thus ending the monopoly long held by Telma.

Positive developments in the international connectivity are also materialising following investments in the METISS cable connecting to South Africa and Mauritius. Landing stations for this cable were completed in June 2020. The country's connection to the Africa-1 cable will provide additional links to the African mainland and to other international cable systems.

A national fibre backbone has been implemented connecting the major cities, with Telma having invested some $250 million to expand the network to 11,000km between 2017 and 2019. Wireless access networks are being rolled out, with Telma having completed a network upgrade to LTE-A, and with the government in mid-2020 committing itself to deploying free WiFi hotspots in a bid to ensure that poorest sections of society have access to internet services.

Penetration rates in all market sectors are still below African averages, and so there remains considerable growth potential.

BuddeComm notes that the outbreak of the Coronavirus in 2020 is having a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.

The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.

Key Developments:

• Telma ordered to suspend its 5G service;

• Madagascar to host landing station for the Africa-1 cable system, to be ready in 2021;

• National backbone network extended to 11,000km;

• Gulfsat Madagascar secures licence to become the second national backbone provider;

• Government announces plans to deploy free Wi-Fi hotspots;

• Orange Madagascar completes national LTE-A network upgrade;

• Telecom service tax drops to 8%;

• Report update includes the regulator's market data updates for 2019, telcos' operating data to Q2 2020, assessment of the global impact of Covid-19 on the telecoms sector, recent market developments.

Companies mentioned in this report:

Telecom Malagasy (Telma), Airtel Madagascar (Zain, Celtel), Orange Madagascar, Madamobil, Gulfsat Madagascar (Blueline), Datacom, Data Telecom Services (DTS, Moov).

Table of Contents

Key statistics

Country overview

Covid-19 and its impact on the telecom sector

• Economic considerations and responses
• Mobile devices
• Subscribers
• Infrastructure

Telecommunications market

• Market analysis

Regulatory environment

• Telecommunications reform
• National ICT Policy
• Regulatory authority
  • ARTEC
• Fixed-line developments
  • Universal Service Fund
  • Privatisation
• Mobile network developments
  • Spectrum licenses
  • SIM card registration

Mobile market

• Market analysis
• Mobile statistics
  • General statistics
• Mobile infrastructure
  • 5G
  • 4G (LTE)
  • 3G
  • GPRS/EDGE
  • Satellite mobile
  • Mobile broadband
• Major mobile operators
  • Airtel Madagascar (formerly Madacom, Zain/Celtel)
  • Orange Madagascar (formerly SMM)
  • Telma Mobile (Telecom Malagasy)
  • Madamobil
  • Blueline
• Mobile content and applications
  • Mobile money transfer, m-banking

Fixed-line broadband market

• Market analysis
• Broadband statistics
• Public internet access locations
• Data licensees
• Broadband infrastructure
  • Digital Subscriber Line (DSL) Networks
  • Fibre-to-the-Premises (FttP)
  • Other fixed-line broadband services

Fixed network operators

• Telecom Malagasy (Telma)
• Gulfsat Madagascar

Telecommunications infrastructure

• Overview of the national telecom network
• Network infrastructure
• National fibre optic backbone
• International infrastructure
  • SAFE
  • LION
  • EASSy
  • METISS
  • Africa-1
  • 2Africa submarine cable

Glossary of abbreviations

Related reports

List of Tables

• Table 1 - Top Level Country Statistics and Telco Authorities - Madagascar - 2020 (e)
• Table 2 - Development of telecom market revenue by service - 2010 - 2019
• Table 3 - Fixed-line voice and data revenue - 2014 - 2019
• Table 4 - Development of wholesale revenue by service - 2016 - 2019
• Table 5 - Change in telecom market investment - 2010 - 2019
• Table 6 - Telecom sector share of GDP - 2012 - 2018
• Table 7 - Mobile network coverage of communes - 2017; 2019
• Table 8 - New mobile network coverage by technology - 2018 - 2019
• Table 9 - Growth in the number of mobile subscribers and penetration rate - 2010 - 2025
• Table 10 - Development of off-net mobile traffic - 2010 - 2019
• Table 11 - Development of on-net mobile traffic - 2010 - 2019
• Table 12 - Development of mobile revenue by type - 2017 - 2019
• Table 13 - Increase in SMS traffic - 2008 - 2019
• Table 14 - Decline in SMS revenue - 2017 - 2019
• Table 15 - Population coverage by mobile platform - 2014 - 2018
• Table 16 - Shared and owned mobile base stations - 2017 - 2019
• Table 17 - Growth in the number of active mobile broadband subscribers and penetration - 2013 - 2025
• Table 18 - Increase in fixed and mobile internet traffic - 2010 - 2019
• Table 19 - Mobile internet revenue - 2016 - 2019
• Table 20 - Airtel Madagascar mobile subscribers - 2013 - 2019
• Table 21 - Change in the number of Orange Madagascar's mobile subscribers - 2010 - 2020
• Table 22 - Telma Mobile mobile subscribers - 2013 - 2019
• Table 23 - Change in the number of fixed-line internet users and penetration rate - 2010 - 2019
• Table 24 - Fixed-line broadband subscribers - 2010 - 2021
• Table 25 - Increase in fixed-line internet traffic - 2010 - 2019
• Table 26 - Decline in the number of DSL subscribers - 2010 - 2019
• Table 27 - Increase in the number of fibre broadband subscribers - 2013 - 2019
• Table 28 - Change in the number of sixed wireless broadband subscribers - 2016 - 2019
• Table 29 - Decline in the number of satellite broadband subscribers - 2016 - 2019
• Table 30 - Change in the number of fixed lines in service and teledensity - 2010 - 2021
• Table 31 - Change in the number of fixed lines by type - 2015 - 2019
• Table 32- Decline in fixed-line traffic - 2010 - 2019
• Table 33 - Increase in international internet bandwidth - 2010 - 2018
• Table 34 - Historic - Telecom market revenue by service - 2006 - 2009
• Table 35 - Historic - Mobile network coverage by technology and operator - 2017
• Table 36 - Historic - Mobile subscribers and penetration rate - 2000 - 2009
• Table 37 - Historic - Development of off-net mobile traffic - 2006 - 2009
• Table 38 - Historic - Development of on-net mobile traffic - 2006 - 2009
• Table 39 - Historic - Zain Madagascar financial data before takeover - 2006 - 2009
• Table 40 - Historic - Orange Madagascar subscribers - 2007 - 2009
• Table 41 - Historic - Orange Madagascar revenue - 2012 - 2014
• Table 42 - Historic - Fixed-line internet users and penetration rate - 2000 - 2009
• Table 43 - Historic - Fixed-line broadband subscribers - 2006 - 2009
• Table 44 - Historic - DSL broadband subscribers - 2006 - 2009
• Table 45 - Historic - Fixed lines in service and teledensity - 2000 - 2009
• Table 46 - Historic - Fixed-line traffic - 2006 - 2009
• Table 47 - Historic - International internet bandwidth - 2000 - 2009

List of Charts

• Chart 1 - Development of telecom market revenue by service - 2010 - 2019
• Chart 2 - Development of wholesale revenue by service - 2016 - 2019
• Chart 3 - Change in telecom market investment - 2010 - 2019
• Chart 4 - Growth in the number of mobile subscribers and penetration rate - 2010 - 2025
• Chart 5 - Development of off-net mobile traffic - 2010 - 2019
• Chart 6 - Development of on-net mobile traffic - 2010 - 2019
• Chart 7 - Increase in SMS traffic - 2008 - 2019
• Chart 8 - Growth in the number of active mobile broadband subscribers and penetration - 2013 - 2025
• Chart 9 - Increase in fixed and mobile internet traffic - 2010 - 2019
• Chart 10 - Change in the number of Orange Madagascar's mobile subscribers - 2010 - 2020
• Chart 11 - Decline in the number of DSL subscribers - 2010 - 2019
• Chart 12 - Increase in the number of fibre broadband subscribers - 2013 - 2019
• Chart 13 - Change in the number of fixed lines in service and teledensity - 2010 - 2021
• Chart 14 - Change in the number of fixed lines by type - 2015 - 2019
• Chart 15 - Decline in fixed-line traffic - 2010 - 2019

List of Exhibits

• Exhibit 1 - 2Africa submarine cable
• Exhibit 2 - 2Africa landing stations