Bharatbook.com : Zambia - Telecoms, Mobile And Broadband

Zambia - Telecoms, Mobile and Broadband

Zambia - Telecoms, Mobile and Broadband

Zambias GDP growth has remained almost unaffected by the global economic crisis. After briefly dipping to 4.5% in 2009 it is expected to return to the level of between 5% and 6% p.a. from 2010 which it has enjoyed consistently over the past six years. The countrys telecommunications market is dominated by mobile network operator Zain (formerly Celtel) which has a market share of almost 75%. However, the fastest subscriber growth is currently seen by the runner-up, MTN (formerly Telecel) from South Africa. The average revenue per user (ARPU) on the other hand has dropped sharply in 2009 after it had already reversed its long-term downtrend in 2008. ( http://www.bharatbook.com/detail.asp?id=129463&rt=Zambia-Telecoms-Mobile-and-Broadband.html )

The third competitor in the mobile market is Cell Z, the mobile division of the national telco, Zamtel. Zamtel has been performing poorly in the mobile as well as the fixed-line sector, despite monopoly rights in the latter, including the international gateway. This has also limited growth in the Internet and broadband sector, with some of the highest prices for international bandwidth on the continent. The monopoly on the international gateway and restrictions on VoIP Internet telephony are set to fall under the new ICT Act of 2009, which will make international calls and borderless international roaming much more attractive. The Act will also establish a new unified licensing regime which will enable more competition in all market sectors from existing and new players. With penetration rates in all sectors still below regional averages, the growth prospects are excellent.

Since 2009 mobile handsets are being manufactured in Zambia for the domestic market as well as export.

A majority stake in Zamtel is up for privatisation in the first half of 2010. One of its key assets is a national fibre network that is currently being rolled out, including connections to neighbouring countries which will provide transit links to international submarine fibre optic cables off the African east and west coasts. However, alternative domestic fibre is already being rolled out by three other companies, and one of them has recently completed the countrys first ever connection to an international submarine fibre optic cable, SAT-3/WASC.

Alternative international fibre links will go live in 2010 and 2011, reducing the dependency on a single provider, which will first and foremost benefit the broadband sector with cheaper international bandwidth. Zamtels expensive ADSL service is still dominating this sector, albeit at a very low level. Competition exists from several ISPs which have rolled out WiMAX wireless broadband networks.Mobile data services using GPRS and EDGE are available but have remained expensive under the current conditions. Third-generation (3G) technology rollouts are in progress, including 3.5G HSPA.

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