Executive Summary

With around 13% of the world’s population and less than 3% of the world’s telephone lines, Africa is fast evolving as a continent of unlimited opportunity for telecommunications service providers, equipment vendors and investors.
Africa needs to invest US$11 billion per year over a 10-year period to reach its target of 10% teledensity by the year 2010. The private sector is expected to be the key player in the financing of telecommunications development in the region.
Many African countries are undergoing sectoral reform and foreign investment is flowing in as privatisation and deregulation are progressively being introduced. More than one-third of all state telcos have already privatised and several more are set to undergo privatisation in the near future. Nigeria and Kenya, two of the biggest markets on the continent, have privatisation of their national telcos on the agenda for 2005.
While being the worlds most rapidly growing market for mobile telephony and also home to the fastest growing fixed telephony markets in the world, Africa still has the world’s lowest penetration rates and basic telephony provision remains a major need in many parts of the continent, particularly in rural areas.
Mobile phones outnumber fixed lines in most African countries and constitute more than 80% of all African telephone subscribers - a higher ratio than on any other continent. Demand for mobile lines is so high that in some countries the existing networks are struggling to cope. By 2010, Africa is expected to notch up some 200 million mobile subscribers.
The convergence of fixed and mobile networks and services will continue to dominate the market with future licensees gaining combination licences with the ability to operate both wired and wireless systems.
Second National Operator (SNO) licences have been issued to companies in Ghana, Nigeria, Tanzania, Uganda and Zimbabwe. South Africa plans to license a SNO in 2005 and Uganda a Third National Operator (TNO). Several countries have also licensed regional operators, in some cases specifically for under-served areas.
Regulations in most African countries do not allow Internet Service Providers (ISPs) to obtain their own international bandwidth. In early-2005 Kenya joined the list of countries with ISPs that are not dependent on a monopoly operator in this regard and licensed several new international bandwidth providers.
Africa’s combined international Internet bandwidth is projected to rise tenfold to more than 6Gb/s over the five years to 2006. By early-2004 it stood at around 2.5Gb/s.
Overall Internet market penetration is still very low due to limited fixed-line infrastructures. Nevertheless, several African countries have experienced triple-digit growth rates in Internet usage in 2003 and 2004. Various broadband initiatives have been launched and the number of African countries offering commercial ADSL services has tripled to 15 during 2004.
The proliferation of new wireless technologies, including Third generation (3G) and 2.5G mobile technologies is expected to bring the Internet to broad masses in Africa for the first time. The first 3G mobile systems were launched in Africa as early as March 2003, and several mobile operators have already established themselves as ISPs.
The liberalisation of Voice over Internet Protocol (VoIP) telephony in several African countries in 2004 will have a significant impact on their markets moving into 2005 and is expected to have a ripple effect across the continent, triggering a much needed reduction of the traditionally high telecommunication costs in Africa.
Telkom South Africa, the continent’s biggest telco and 50% shareholder in Vodacom, listed on the Johannesburg and New York Stock Exchanges in 2003 and operate one of the most extensive and advanced telecoms networks in Africa.
Thuraya Satellite Telecommunications, one of the leading providers of Global Mobile Personal Communications Satellite (GMPCS) services, expanded its footprint in sub-Saharan Africa significantly in 2004, made possible by the launch of a second satellite the previous year.
Several African and international companies have evolved as regional mobile players, including: Celtel International, Econet Wireless International, Millicom International Cellular, MTN Group, Orange, Orascom Telecom and Vodacom Group.

1. EXECUTIVE SUMMARY
1.1 Key highlights
1.2 Key highlight telecom company profiles
1.3 Related reports
2. TELECOMS, MOBILE AND BROADBAND OVERVIEW AND ANALYSIS 2005
2.1 Telecom market overview
2.2 Key developments
2.2.1 Deregulation and privatisation
2.2.2 Infrastructure developments
2.2.3 Data traffic on the rise
2.2.4 Internet markets: Virtually untapped
2.2.5 Mobile communications: A wireless continent
2.2.6 Broadcasting
3. TELECOMMUNICATIONS MARKET
3.1 Overview of Africa’s telecom market
3.2 Growth opportunities
3.2.1 BMI-TechKnowledge forecasts
3.2.2 CIT-PriMetrica study
3.2.3 The wireless explosion
3.3 Internet market
3.4 Foreign investments in telecommunications
4. REGULATORY ENVIRONMENT
4.1 WTO members
4.2 Deregulation and privatisation
4.3 Universal access
4.4 African Telecommunication Regulators Network (ATRN)
4.5 Telecommunication Regulators Association of Southern Africa (TRASA)
4.6 African Telecommunications Union (ATU)
5. TELECOMMUNICATIONS INFRASTRUCTURE
5.1 Overview
5.2 Domestic infrastructure
5.2.1 Pan African Telecommunications Network
5.2.2 Comtel
5.2.3 East African Community digital transmission project
5.3 International infrastructure
5.3.1 Satellite networks
5.3.2 Submarine cable networks
6. DATA MARKET
6.1 Africa’s data traffic on the rise
6.2 Limited availability of advanced data services
6.3 VSAT networks – an instant infrastructure solution for Africa
7. INTERNET MARKET
7.1 Overview of Africa’s Internet market
7.1.1 Internet statistics
7.2 African Internet developments
7.2.1 Barriers to Internet development
7.2.2 Internet access locations
7.2.3 African Internet projects sponsored by international agencies
7.2.4 Internet connectivity
7.2.5 African Internet exchange points
7.3 ISP market
7.3.1 Africa’s largest ISP – Africa Online
7.3.2 Average cost of local dial-up accounts
7.3.3 Payment models for dial-up Internet access
7.3.4 E-mail only services
7.3.5 African ISP association (AfrISPA)
7.4 VoIP telephony
7.4.1 VoIP cost savings
7.4.2 VoIP regulatory restrictions
8. BROADBAND MARKET
8.1 An emerging market
8.2 Wireless broadband
8.2.1 Internet via satellite
9. VOIP TELEPHONY
9.1 Market overview
9.2 Brief overview of selected VoIP service providers in Africa
9.2.1 ITXC
9.2.2 iBasis
9.2.3 Net2Phone
9.2.4 VocalTec
9.2.5 Viper Networks
9.3 Benefits of VoIP
9.4 VoIP regulatory restrictions and liberalisation
9.4.1 Case study: South Africa
9.4.2 Case study: Kenya
9.5 VoIP telephony in various African countries
9.5.1 Chad
9.5.2 Egypt
9.5.3 Gambia
9.5.4 Ghana
9.5.5 Mali
9.5.6 Morocco
9.5.7 Nigeria
9.5.8 Senegal
9.5.9 Tanzania
9.5.10 Uganda
9.5.11 Zimbabwe
10. MOBILE COMMUNICATIONS MARKET
10.1 Analysis of Africa’s mobile market
10.1.1 Statistical analysis
10.1.2 More mobiles than fixed lines
10.2 Mobile technologies
10.2.1 Analogue
10.2.2 Digital
10.3 Fixed-mobile convergence
10.3.1 Wireless local loop (WLL)
10.4 Pan-African mobile operators
10.4.1 Celtel International (formerly MSI Cellular Investments)
10.4.2 Econet Wireless International
10.4.3 France Telecom/Orange
10.4.4 Millicom International Cellular
10.4.5 MTN Group Ltd
10.4.6 Orascom Telecom
10.4.7 Vodacom Group (Pty)
10.5 Mobile voice services
10.5.1 Prepaid cards
10.5.2 Satellite mobile
10.6 Mobile data services
10.6.1 Overview
10.6.2 SMS
10.6.3 MMS
10.6.4 GPRS
10.6.5 EDGE
11. BROADCASTING MARKET
11.1 Overview
11.2 Problems facing the broadcasting industry
11.3 Free-to-air TV
11.3.1 Overview
11.3.2 African Broadcast Network
11.3.3 TVAfrica (defunct)
11.4 Pay TV
11.4.1 Overview
11.4.2 MIH Group
11.4.3 Other pay TV operators
11.5 Satellite coverage
11.5.1 Arabsat
11.5.2 Eutelsat
11.5.3 Intelsat and PanAmSat
11.5.4 NewSkies Satellites
11.5.5 NileSat
11.5.6 WorldSpace
11.6 Interactive TV
11.6.1 MIH OpenTV
11.6.2 Interactive TV using SMS
11.6.3 Business TV
12. MAJOR TELECOM COMPANY PROFILES
12.1 MTN Group Limited
12.1.1 MTN Group Company information
12.1.2 Group structure
12.1.3 MTN South Africa
12.1.4 MTN International
12.1.5 Strategic Investments
12.1.6 Services
12.1.7 Contact details
12.2 Orascom Telecom Holding
12.2.1 Orascom Telecom company information
12.2.2 Operations
12.2.3 GSM products and services
12.2.4 Contact details
12.3 Telkom South Africa Ltd
12.3.1 Telkom South Africa company information
12.3.2 Subsidiaries and associates
12.3.3 Fixed-line network
12.3.4 Services
12.3.5 Contact details
12.4 Vodacom Group (Pty) Ltd
12.4.1 Vodacom group company information
12.4.2 Vodacom Group companies
12.4.3 South African network
12.4.4 South African operations
12.4.5 Services
12.4.6 Contact details
13. GLOSSARY OF ABBREVIATIONS


Exhibit 1 – South Africa’s ‘Big Bang’ liberalisation 2004/2005
Exhibit 2 – Globacom – a new African operator going global
Exhibit 3 – African countries with independent regulators – 2003
Exhibit 4 – Overview of selected submarine fibre optic cable projects
Exhibit 5 – Countries providing advanced data services – 2004
Exhibit 6 – African PTOs using VoIP
Exhibit 7 – VoIP in Egypt
Exhibit 8 – Countries with more than one mobile network – 2004
Exhibit 9 – MTN Group Limited at a glance
Exhibit 10 – MTN South Africa subsidiaries and associates – March 2004
Exhibit 11 – MTN International operating subsidiaries and associates – March 2004
Exhibit 12 – MTN Nigeria at a glance
Exhibit 13 – MTN Cameroon at a glance
Exhibit 14 – MTN Cameroon at a glance
Exhibit 15 – MTN Rwanda at a glance
Exhibit 16 – MTN Swaziland at a glance
Exhibit 17 – Strategic Investments subsidiaries – March 2003
Exhibit 18 – Orascom Telecom Holding at a glance
Exhibit 19 – Orascom Telecom Holding divestments – 2002 - 2004
Exhibit 20 – Operating networks – December 2004
Exhibit 21 – MobiNil Egypt at a glance
Exhibit 22 – Djezzy Algeria at a glance
Exhibit 23 – Tunisiana Tunisia at a glance
Exhibit 24 – Mobilink Pakistan
Exhibit 25 – Libertis Congo Brazzaville at a glance
Exhibit 26 – Telecel International
Exhibit 27 – Oasis Telecom – DRC
Exhibit 28 – Telecel Zimbabwe – Zimbabwe
Exhibit 29 – Iraqna Iraq at a glance
Exhibit 30 – Banglalink Bangladesh at a glance
Exhibit 31 – Telkom South Africa at a glance
Exhibit 32 – Major subsidiaries and associates – March 2003
Exhibit 33 – Vodacom Group at a glance
Exhibit 34 – Vodacom Group at a glance
Exhibit 35 – Major Vodacom Group companies – March 2004
Exhibit 36 – Vodacom Service Providers – March 2004
Exhibit 37 – Vodacom International subsidiaries – March 2004
Exhibit 38 – Vodacom Tanzania at a glance
Exhibit 39 – Vodacom Congo at a glance
Exhibit 40 – Vodacom Lesotho at a glance
Exhibit 41 – Vodacom Mozambique at a glance




Table 1 – Top five African Internet user markets – 2003
Table 2 – Internet users in Africa – 1995 - 2003
Table 3 – Internet host computers – 1995 - 2003
Table 4 - Broadband access amongst Internet households – 2001 - 2004
Table 5 – Top 10 countries by annual growth – September 2004
Table 6 – African mobile subscriber growth – 1998 - 2004
Table 7 – Top 10 African countries by subscribers – September 2004
Table 8 – Orange operations in Africa – September 2004
Table 9 – MTN Group subscribers – September 2004
Table 10 – Orascom Telecom subscribers in Africa – September 2004
Table 11 – Vodacom Group subscribers – September 2004
Table 12 – Naspers pay TV subscribers in Africa – 2003 - 2004
Table 13 – Aggregate subscribers – 1998 - 2004
Table 14 – MTN subscribers by country – March 2004
Table 15 – Revenue and annual change – 2000 - 2004
Table 16 – Revenue by country – 2004
Table 17 – Revenue by service – 2004
Table 18 – MTN South Africa revenue and annual change – 2000 - 2004
Table 19 – MTN South Africa subscribers – 2000 - 2004
Table 20 – MTN South Africa network – March 2004
Table 21 – Revenue for subsidiaries – 2000 - 2004
Table 22 – Subsidiary subscribers – 2000 - 2004
Table 23 – MTN Nigeria subscribers – 2002 - 2004
Table 24 – Revenue and annual change – 2003 - 2004
Table 25 – MTN Nigeria network – March 2004
Table 26 – MTN Cameroon subscribers – 2001 - 2004
Table 27 – Revenue and annual change – 2003 - 2004
Table 28 – MTN Cameroon network – March 2004
Table 29 – MTN Uganda subscribers – 2001 - 2004
Table 30 – Revenue and annual change – 2003 - 2004
Table 31 – MTN Uganda mobile network – March 2004
Table 32 – MTN Rwanda subscribers – 2001 - 2004
Table 33 – Revenue and annual change – 2003 - 2004
Table 34 – MTN Uganda mobile network – March 2004
Table 35 – MTN Swaziland subscribers – 2001 - 2004
Table 36 – Revenue and annual change – 2003 - 2004
Table 37 – MTN Swaziland mobile network – March 2004
Table 38 – Number of GSM subscribers by country – September 2004
Table 39 – Revenue and annual change – 1999 - 2003
Table 40 – Revenue by service – 2003
Table 41 – GSM revenue by country – 2003
Table 42 – Fixed-line subscribers – 1997 - 2004
Table 43 – Fixed-line traffic – 2004
Table 44 – Internet access – 2004
Table 45 – Revenue and annual change – 1996 - 2004
Table 46 – Revenue by service – 2004
Table 47 – Vodacom Group subscribers – 2001 - 2004
Table 48 – Vodacom Group subscribers by country – March 2004
Table 49 – Digital exchanges and digitalisation – 2000 - 2004
Table 50 – ATM network statistics – March 2004
Table 51 – Public IP broadband network statistics – March 2004
Table 52 – ADSL access network statistics – March 2004
Table 53 – VoIP network statistics – March 2004
Table 54 – Submarine cable systems – March 2004
Table 55 – Mobile market share South Africa – March 2004
Table 56 – Vodacom Group subscribers – 1996 - 2004
Table 57 – Vodacom Group subscribers by country – March 2004
Table 58 –Vodacom Group revenue and annual change – 1999 - 2004
Table 59 –Vodacom Group revenue by service – 2004
Table 60 – Vodacom Group revenue by country – 2004
Table 61 – Vodacom Tanzania network – March 2004
Table 62 – Vodacom Tanzania subscribers – 2002 - 2004
Table 63 – Revenue and annual change – 2002 - 2004
Table 64 – Vodacom Congo network – March 2004
Table 65 – Vodacom Congo subscribers – 2002 - 2004
Table 66 – Revenue and annual change – 2002 - 2004
Table 67 – Vodacom Lesotho network – March 2004
Table 68 – Vodacom Lesotho subscribers – 2002 - 2004
Table 69 – Revenue and annual change – 2002 - 2004
Table 70 – Vodacom Mozambique network – March 2004
Table 71 – Vodacom network overview – 1999 - 2004
Table 72 – Vodacom South Africa network – March 2004
Table 73 – Vodacom public phone network – March 2004