Executive Summary

Low fixed-line teledensity and Internet penetration and the explosive growth of mobile telephony (particularly prepaid) are the chief characteristics of the telecom markets in the Central and Eastern region of Africa. Every country in this group now has an independent telecom regulator overseeing the further development of the sector. The incumbent PTOs in several of the countries have been partially privatised with others to follow in the near future, including major markets such as Kenya. Following in its footsteps, neighbouring Tanzania and Uganda will also introduce new competition frameworks in 2005, deregulating among other things the use of Voice over Internet Protocol (VoIP) telephony.

The telecommunications sector in Cameroon has in the past few years undergone considerable transformations following the privatisation of the mobile subsidiary of the PTO, the award of a second mobile licence and the preparation for privatisation of Camtel. While the fixed-line network is at a very low level of development with long waiting lists for connections, the country’s two mobile networks have experienced phenomenal growth since the introduction of competition in 2000. Mobile subscribers now constitute more than 90% of all telephone lines in the country. Despite full competition in the Internet sub-sector, it is still under-developed with penetration of less than 1%. With the participation of foreign investors in the national operator after privatisation, network expansion and introduction of new services can be expected.

The Democratic Republic of Congo, formerly Zaire, is a mineral-rich country that is recovering from civil strife and many years of pillage by its former leaders which has accounted for the low level of development of its telecommunications and other infrastructure. While the traditional fixed-line network has deteriorated to almost non-existence, mobile telephony has experienced triple-digit growth figures almost every year since 2000. There is also strong demand for Internet service which is hampered by the underdeveloped telecoms infrastructure. Even though wireless technologies also serve as a fast replacement of the obsolete fixed network, national teledensity remains low and vast areas of this large country devoid of any telecommunications infrastructure.

Ethiopia is one of the few African countries still practising a monopoly in its telecoms sector though with an independent regulator. Total telephone line penetration remains very low. However, the government is intent on privatising the national operator, ETC, and introducing competition in mobile and Internet services. The mobile sector has been growing by 100% or more per annum in recent years, resulting in major infrastructure expansion efforts. Several broadband initiatives launched during 2004 promise to bring the country closer to the information society. ETC has budgeted a record amount for the financial year 2004/2005 for infrastructure improvements.

2004 was a big year for Kenya’s telecom sector with Telkom’s monopoly in the fixed-line and international bandwidth sectors coming to an end, the licensing of a regional carrier, a third mobile operator and several new international data carriers. The licensing of a Second National Operator (SNO) was aborted and may have to be repeated, but in the meantime a new competition framework has been introduced involving, among other things, the liberalisation of VoIP telephony. These steps, along with the planned sale of a majority stake in the PTO in 2005 will change the telecoms landscape in Kenya dramatically. Kenya has one of the largest Internet communities in Africa and is also among the fastest growing mobile markets in the region. Yet, enormous further potential remains, with mobile and fixed-line penetration only at around 10% and 1%, respectively.

Tanzania has a fully competitive mobile sector comprising four mobile operators while two fixed-line operators separately cover the mainland and the semi-autonomous island of Zanzibar. Major advances occurred after 2000 when competition in the mobile sector was introduced and the incumbent PTO was partially privatised. Mobile subscribers now outnumber fixed-lines by more than 11:1. The country’s Internet market remains largely untapped owing to limited and poor fixed-line infrastructure. However, following the end of the PTO’s monopoly on the mainland in 2005, more pervasive fixed-line services and data networks can be expected. VoIP telephony will also be liberalised under the new competition framework in 2005, following in the footsteps of neighbouring Kenya.

Once referred to as the Pearl of Africa, then devastated by civil war, peace and radical economic reforms have transformed Uganda into one of the fastest-growing economies on the continent. The telecommunications sector has undergone major transformations after the entry of a SNO and the launch of a third mobile network in 2001. Uganda was the first country on the continent where the number of mobile subscribers passed the number of fixed-line users, now at a ratio of more than 14:1. Major initiatives have been launched to bring telecommunication services and the Internet to rural areas of the country, partly funded by the highly successful operators through a Universal Service Fund (USF). A new competition framework is to be introduced in mid-2005 which will include the licensing of a third national operator and the liberalisation of VoIP telephony.

1. EXECUTIVE SUMMARY
1.1 Key highlights
2. CAMEROON
2.1 Key statistics
2.2 Telecommunications market
2.2.1 Overview of Cameroon’s telecom market
2.3 Regulatory environment
2.3.1 Sector reorganisation and liberalisation
2.3.2 Regulatory authority
2.3.3 Privatisation of Camtel
2.4 Telecommunications infrastructure
2.4.1 National and international
2.5 Data market
2.5.1 Data network
2.5.2 VSAT networks
2.6 Internet market
2.6.1 Overview of the Internet in Cameroon
2.6.2 Internet access locations
2.6.3 Cameroon’s ISP market
2.7 Mobile communications
2.7.1 Overview of Cameroon’s mobile market
2.7.2 Major mobile operators
2.8 Broadcasting market
2.8.1 Television broadcasting in Cameroon
3. DEMOCRATIC REPUBLIC OF CONGO
3.1 Key statistics
3.2 Telecommunications market
3.2.1 Overview of DRC’s telecom market
3.3 Regulatory environment
3.3.1 Overview
3.3.2 Regulatory authority
3.3.3 Competition in the telecom sector
3.3.4 Privatisation of OCPT
3.4 Telecommunications infrastructure
3.4.1 National and international
3.5 Internet market
3.5.1 Overview of the Internet in DRC
3.5.2 Internet access locations
3.5.3 ISP market
3.6 Mobile communications
3.6.1 Market overview
3.6.2 Major mobile operators
3.7 Broadcasting
3.7.1 Television and radio broadcasting in DRC
4. ETHIOPIA
4.1 Key statistics
4.2 Telecommunications market
4.2.1 Overview of Ethiopia’s telecom market
4.3 Regulatory environment
4.3.1 Regulatory authority
4.3.2 Telecom service licences
4.3.3 Telecom sector liberalisation
4.3.4 Privatisation of Ethiopian Telecommunications Corporation
4.4 Fixed network operators
4.4.1 Ethiopian Telecommunications Corporation
4.5 Telecommunications infrastructure
4.5.1 National telecom network
4.5.2 International communications links
4.6 Data market
4.6.1 Digital Data Network
4.6.2 PADISnet
4.6.3 VSAT networks
4.7 Internet market
4.7.1 Overview of Ethiopia’s Internet market
4.7.2 National connectivity
4.7.3 Internet regulatory issues
4.7.4 Internet access locations
4.7.5 ISP market
4.7.6 Direcway broadband satellite network
4.8 Mobile communications
4.8.1 Overview of Ethiopia’s mobile market
4.8.2 Major mobile operators
4.9 Broadcasting market
4.9.1 Regulatory overview
4.9.2 Free to air TV
4.9.3 Satellite TV
5. KENYA
5.1 Key statistics
5.2 Telecommunications market
5.2.1 Overview of Kenya’s telecom market
5.3 Regulatory environment
5.3.1 Kenya Communications Act 1998
5.3.2 Regulatory authority
5.3.3 Tariff regulation
5.3.4 Foreign ownership
5.3.5 Number portability
5.3.6 Telecom sector liberalisation in Kenya
5.3.7 Privatisation of Telkom Kenya
5.4 Fixed network operators
5.4.1 Telkom Kenya Ltd
5.5 Telecommunications infrastructure
5.5.1 National telecom network
5.5.2 International infrastructure
5.6 Data market
5.6.1 Overview
5.7 Internet market
5.7.1 Overview of the Internet in Kenya
5.7.2 Internet access locations
5.7.3 Internet backbone
5.7.4 Kenya Internet exchange point
5.7.5 Kenya Network Information Centre (KENIC)
5.7.6 Kenya’s ISP market
5.7.7 VoIP telephony
5.7.8 Broadband in Kenya
5.7.9 Wireless Internet
5.8 Mobile communications
5.8.1 Overview of Kenya’s mobile market
5.8.2 Interconnection
5.8.3 Mobile number portability (MNP)
5.8.4 Equipment Identification Register (EIR)
5.8.5 Major mobile operators
5.8.6 Mobile voice services
5.9 Broadcasting market
5.9.1 Regulatory overview
5.9.2 Free-to-air TV
5.9.3 Pay TV
6. TANZANIA
6.1 Key statistics
6.2 Telecommunications market
6.2.1 Overview of Tanzania’s telecom market
6.3 Regulatory environment
6.3.1 Background
6.3.2 National Telecommunications Policy 1997
6.3.3 Regulatory authority
6.3.4 Telecom sector liberalisation in Tanzania
6.3.5 Privatisation of Tanzania Telecom
6.4 Fixed network operators
6.4.1 Tanzania Telecommunications Co Ltd
6.4.2 Zanzibar Telecommunications Corporation
6.5 Telecommunications infrastructure
6.5.1 National telecom network
6.5.2 International
6.6 Data market
6.6.1 Data operators
6.6.2 VSAT networks
6.7 Internet market
6.7.1 Overview of the Internet in Tanzania
6.7.2 Internet access locations
6.7.3 Tanzania’s ISP market
6.7.4 VoIP telephony
6.8 Mobile communications
6.8.1 Overview of Tanzania’s mobile market
6.8.2 Major mobile operators
6.8.3 Mobile voice services
6.9 Broadcasting
6.9.1 Television broadcasting in Tanzania
6.9.2 Public TV broadcasters
6.9.3 Private TV broadcasters
7. UGANDA
7.1 Key statistics
7.2 Telecommunications market
7.2.1 Overview of Uganda’s telecom market
7.3 Regulatory environment
7.3.1 Background
7.3.2 Telecommunications policy 1996
7.3.3 Uganda communications act 1997
7.3.4 Regulatory authority
7.3.5 Telecom sector liberalisation in Uganda
7.3.6 Privatisation of Uganda Telecom
7.3.7 New competition framework 2005
7.4 Fixed network operators in Uganda
7.4.1 Uganda Telecom Ltd
7.4.2 MTN Uganda Ltd
7.5 Telecommunications infrastructure
7.5.1 National telecom network
7.5.2 International infrastructure
7.6 Data market
7.6.1 Data infrastructure
7.7 Internet market
7.7.1 Overview of the Internet in Uganda
7.7.2 Uganda Internet Exchange Point (UiXP)
7.7.3 Internet access locations
7.7.4 Internet initiatives
7.7.5 Uganda’s ISP market
7.8 Convergence
7.8.1 E-services
7.9 Mobile communications
7.9.1 Overview of Uganda’s mobile market
7.9.2 Major mobile operators
7.9.3 Satellite mobile
7.10 Broadcasting
7.10.1 Market overview
7.10.2 Pay TV
8. GLOSSARY OF ABBREVIATIONS


Exhibit 1 – Legal status of telecoms services in Ethiopia
Exhibit 2 – Licences issued as at June 2002
Exhibit 3 – Terrestrial TV stations
Exhibit 4 – Private cable and satellite TV stations
Exhibit 5 – VSAT users
Exhibit 6 – Licensed ISPs in Uganda




Table 1 – Country statistics Cameroon – 2003
Table 2 – Telephone network statistics – 2003
Table 3 – Internet provider statistics – 2003
Table 4 – Internet user statistics – 2003
Table 5 – Mobile statistics – September 2004
Table 6 – National telecommunications authorities
Table 7 – Fixed lines in service – 1995 - 2003
Table 8 – Internet users – 1997 - 2003
Table 9 – Internet host computers – 1997 - 2003
Table 10 – Mobile subscribers by operator – September 2004
Table 11 – Mobile subscribers – 1995 - 2004
Table 12 – Country statistics Democratic Republic of Congo – 2003
Table 13 – Telephone network statistics – 2003
Table 14 – Internet provider statistics – 2003
Table 15 – Internet user statistics – 2003
Table 16 – Mobile statistics – September 2004
Table 17 – National telecommunications authorities
Table 18 – Fixed telephone lines – 1995 - 2003
Table 19 – Internet users – 1996 - 2003
Table 20 – Internet host computers – 1996 - 2002
Table 21 – Mobile subscribers by operator – September 2004
Table 22 – Mobile subscribers – 1996 - 2004
Table 23 – Country statistics Ethiopia – 2003
Table 24 – Telephone network statistics – September 2004
Table 25 – Internet provider statistics – 2003
Table 26 – Internet user statistics – September 2004
Table 27 – Mobile statistics – September 2004
Table 28 – National telecommunications authorities
Table 29 – Fixed lines in service – 1995 - 2004
Table 30 – Internet users – 1996 - 2004
Table 31 – Internet subscribers – 2002 - 2004
Table 32 – Internet host computers – 1996 - 2003
Table 33 – Mobile subscribers – 1999 - 2004
Table 34 – Country statistics Kenya – 2003
Table 35 – Telephone network statistics – 2003
Table 36 – Internet provider statistics – 2003
Table 37 – Internet user statistics – 2003
Table 38 – Mobile statistics – September 2004
Table 39 – National telecommunications authorities
Table 40 – Fixed lines in service – 1995 - 2003
Table 41 – Internet users – 1996 - 2003
Table 42 – Internet host computers – 1996 - 2003
Table 43 – Mobile subscribers by operator – September 2004
Table 44 – Mobile subscribers – 1996 - 2004
Table 45 – Country statistics Tanzania – 2003
Table 46 – Telephone network statistics – 2003
Table 47 – Internet provider statistics – 2003
Table 48 – Internet user statistics – 2003
Table 49 – Mobile statistics – September 2004
Table 50 – National telecommunications authorities
Table 51 – Fixed lines in service – 1995 - 2003
Table 52 – Internet users – 1996 - 2003
Table 53 – Internet host computers – 1996 - 2003
Table 54 – Mobile subscribers by operator – September 2004
Table 55 – Mobile subscribers – 1995 - 2004
Table 56 – Country statistics Uganda – 2003
Table 57 – Telephone network statistics – June 2004
Table 58 – Internet provider statistics – June 2004
Table 59 – Internet user statistics – 2003
Table 60 – Mobile statistics – September 2004
Table 61 – National telecommunications authorities
Table 62 – MTN Uganda subscribers – 2000 - 2004
Table 63 – Fixed lines in service – 1995 - 2004
Table 64 – Total data uplink and downlink capacity – 1998 - 2003
Table 65 – Internet users – 1995 - 2003
Table 66 – Internet host computers – 1997 - 2003
Table 67 – Mobile subscribers by operator – September 2004
Table 68 – Mobile subscribers – 1996 - 2004