China Telecom 2000

Market Studies

Africa - Overviews & Company Profiles - Second Edition

Release: 2003

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Overview:


Overall teledensity in African nations is still among the lowest in the world – by the end of 2002, mobile penetration across the continent approached 4%, yet fixed-line growth has been stagnating, even contracting in some markets.

Africa’s target to raise teledensity to 10% by year 2010 requires an investment of US$11 billion per year until then. The private sector is expected to be the key player in the financing of telecommunications development in the region.

The telecom sector remains heavily dominated by single state-run telecom monopolies, but liberalisation continues to forge ahead, with new fixed-line operators being licensed in Zimbabwe and Nigeria during 2002, and South Africa and Morocco in 2003. Nigeria has also issued 19 territorial licences for fixed wireless access operators.

Operators across the continent are typically focussed exclusively on the provision of voice services; development of value-added services is confined to the more mature markets such as South Africa, Zimbabwe and Kenya.

Entrepreneurs are playing a key role in the spread of telecoms services across Africa through the provision of telephone shops, telecentres, private payphones, fax and Internet shops.

While Internet uptake increased from an estimated 6.7 million users in 2001, to over 10 million in 2002, its use remains comparatively minuscule and is still largely confined to the capital cities.

By 2002 there were 18 countries with Internet Exchange Points in the making and several more under consideration.

By early 2003, only three African countries – Comoros, Eritrea, and Guinea-Bissau – did not have access to mobile phone services, while in at least 30 others mobile phones outnumber fixed lines. Despite this, a number of African nations still had less than one telephone per 100 people in 2002.

Although growth rates have slowed since 2001, Africa’s fastest growing sector continues to be wireless communications. More mobile phones have come into use since 1997 than fixed-line connections installed over the last century. By early 2003, mobile subscribers accounted for more than 65% of the total number of telephone lines in Africa.

Leading operators in Africa’s telecom market include South Africa’s Vodacom Group (Pty), MTN Group Ltd, Telkom South Africa Ltd, and Orascom Telecom:

Controlled by South Africa’s fixed-line incumbent, Telkom SA, and Vodafone Group plc, the Vodacom Group provides GSM mobile services to over 7.4 million customers in South Africa, Tanzania, Lesotho and the Democratic Republic of Congo, and is expanding into Zambia and Mozambique. It is South Africa’s leading cellular provider with 60% of the market, and has contributed to national access by installing over 3,000 community payphone units in under-serviced areas. The company also provides dual GSM/satellite access to remote regions.

MTN Group, South Africa’s second largest mobile operator, is controlled by the Johnnic Group. The company’s GSM network is one of the largest national networks in the world, covering a geographical area the size of France and Germany combined. Faced with a maturing market, since 1987 MTN began to expand into other African countries providing GSM cellular services in: Swaziland, Rwanda, Uganda, Cameroon and Nigeria. It also offers satellite and Internet access services to a total of 14 African countries.

Telkom SA is controlled by the South African Government and strategic partners SCB Communications and Telekom Malaysia. It is currently the exclusive provider of fixed-line telecommunications services in South Africa and the country’s second largest public company. Telkom provides fixed-line telephony, Internet, e-commerce, data communications and satellite services. It offers mobile communications through its 50% owned subsidiary, Vodacom. Telkom made its debut on the Johannesburg and New York Stock Exchanges on March 4, 2003.

Egypt’s Orascom Telecom is the largest GSM operator in the Middle East and Africa, and provides Internet, satellite and telecom support services. It operates in Egypt, Algeria, Pakistan, and 13 Sub-Saharan countries. In March 2002, it secured a GSM licence in Tunisia. In July 2001, it announced that it would divest its Sub-Saharan GSM subsidiaries, and sold its Ivory Coast GSM operator in June 2002. It sold its GSM operators in Yemen (Sabafon) and in Jordan (Fastlink) in October and December 2002 respectively.


Table of Contents

 
 
1. Executive summary, Market overview and analysis 
1.1 Executive summary 
1.2 Market overview and analysis 2003 
1.2.1 Key trends 
1.2.2 Market overview 
2. Telecommunications market 
2.1 Overview 
2.2 Telecommunications growth 
3. Regulatory environment 
3.1 Introduction 
3.2 Foreign operators 
3.3 Regulatory reforms 
3.4 Type of deregulation 
3.5 Privatisation 
3.6 Settlement rates with the USA 
4. Telecommunications infrastructure 
4.1 Overview 
4.2 Wireless Local Loop 
4.3 International 
4.3.1 Submarine cable systems 
4.3.2 International satellite systems 
5. Major players in the market 
5.1 Overview 
5.1.1 Telmex 
5.1.2 Telemar Norte Leste (Telemar) 
5.1.3 Embratel 
5.2 Major international operators 
5.2.1 Telefonica 
5.2.2 Equant 
5.2.3 AT&T Latin America 
5.2.4 BellSouth International 
5.2.5 WorldCom Inc 
5.2.6 Telecom Italia 
5.2.7 Verizon 
6. Data, Internet and E-Services 
6.1 Market overview 
6.2 Regulatory issues 
6.3 Public data communications services 
6.3.1 Overview 
6.3.2 ISDN 
6.3.3 VSAT networks 
6.4 Internet 
6.4.1 Market overview 
6.4.2 ISP market 
6.5 Broadband networks and services 
6.5.1 Broadband market overview 
6.5.2 Cable modems 
6.5.3 ADSL 
6.5.4 Wireless broadband services 
6.6 Content and e-services 
6.6.1 E-commerce 
6.6.2 E-government 
6.6.3 E-communications 
7. Wireless Communications 
7.1 Market overview 
7.2 Mobile technologies 
7.2.1 Digital 
7.2.2 TDMA 
7.2.3 Third generation mobile 
7.3 Major mobile operators 
7.3.1 America Movil 
7.3.2 Telefonica 
7.3.3 Telecom Italia Mobile 
7.3.4 Millicom International Cellular 
7.3.5 BellSouth International 
7.3.6 Portugal Telecom 
7.4 Major equipment suppliers 
7.4.1 Qualcomm Inc 
7.4.2 Ericsson 
7.4.3 Motorola 
7.4.4 Nokia 
7.5 Mobile services 
7.5.1 Prepaid services 
7.5.2 Wireless data services 
7.6 Paging 
7.7 Trunk mobile radio 
8. Broadcasting 
8.1 Market overview 
8.2 Market characteristics 
8.3 Digitial TV 
8.4 Pay TV and cable TV 
8.4.1 Overview 
8.4.2 Cable telephony 
8.5 Satellite TV 
8.5.1 DTH 
8.5.2 Multichannel Multipoint Distribution Service 
8.5.3 Major players broadcasting in the satellite market 
8.5.4 Satellite operators 
8.6 Interactive TV 
8.7 TV content 
8.7.1 Programming in Latin America 
9. Company profiles 
9.1 América Móvil 
9.1.1 Company information 
9.1.2 Subsidiaries 
9.1.3 Other developments 
9.1.4 Contact details 
9.2 Bell Canada 
9.2.1 Company information 
9.2.2 Parent company – Bell Canada Enterprises (BCE) 
9.2.3 The network 
9.2.4 Products and services 
9.2.5 Other developments 
9.2.6 Contact details 
9.3 BellSouth International 
9.3.1 Company information 
9.3.2 Subsidiaries 
9.3.3 Other developments 
9.3.4 Contact details 
9.4 Brasil Telecom SA 
9.4.1 Company information 
9.4.2 Network 
9.4.3 Operations 
9.4.4 Services 
9.4.5 Other developments 
9.4.6 Contact details 
9.5 Diveo Broadband Networks Inc 
9.5.1 Company information 
9.5.2 Subsidiaries 
9.5.3 The network 
9.5.4 Services 
9.5.5 Other developments 
9.5.6 Contact details 
9.6 Empresa Brasileira de Telecomunicações SA (Embratel) 
9.6.1 Company information 
9.6.2 Subsidiaries 
9.6.3 Network 
9.6.4 Operations 
9.6.5 Services 
9.6.6 Other developments 
9.6.7 Contact details 
9.7 Grupo Iusacell 
9.7.1 Company information 
9.7.2 Operations 
9.7.3 Services 
9.7.4 Other developments 
9.7.5 Contact details 
9.8 Impsat Fiber Networks, Inc 
9.8.1 Company information 
9.8.2 Subsidiaries 
9.8.3 Network 
9.8.4 Operations 
9.8.5 Services 
9.8.6 Other developments 
9.8.7 Contact details 
9.9 Tele Norte Leste Participações SA 
9.9.1 Company information 
9.10 Telecom Américas Ltd 
9.10.1 Company information 
9.10.2 Subsidiaries 
9.10.3 Other developments 
9.10.4 Contact details 
9.11 Telecom Argentina SA 
9.11.1 Company information 
9.11.2 Subsidiaries 
9.11.3 Operations 
9.11.4 Services 
9.11.5 Other developments 
9.11.6 Contact details 
9.12 Telefónica Latinoamérica SA 
9.12.1 Company information 
9.12.2 Major subsidiaries 
9.12.3 Other subsidiaries and affiliates 
9.12.4 Services 
9.12.5 Contact details 
9.13 Telmex 
9.13.1 Company information 
9.13.2 Subsidiaries and affiliates 
9.13.3 Operations 
9.13.4 Services 
9.13.5 Other developments 
9.13.6 Contact details 
10. Glossary of Abbreviations 
Exhibit 1 – Latin America countries 
Exhibit 2 – Regional satellite systems 
Exhibit 3 – Drivers of high-speed Internet 
Exhibit 4 – Regulatory status of VoP in selected countries – 2002 
Exhibit 5 – GSM networks in Latin America - 2002 
Exhibit 6 – América Móvil at a glance 
Exhibit 7 – América Móvil’s major subsidiaries – 2002 
Exhibit 8 – América Móvil’s major affiliates – 2002 
Exhibit 9 – Bell Canada at a glance 
Exhibit 10 – BellSouth International at a glance 
Exhibit 11 – Brasil Telecom SA at a glance 
Exhibit 12 – Diveo at a glance 
Exhibit 13 – Summary of services offered 
Exhibit 14 – Embratel at a glance 
Exhibit 15 – Embratel subsidiaries – 2002 
Exhibit 16 – Brasilsat B-series satellites 
Exhibit 17 – Iusacell at a glance 
Exhibit 18 – Iusacell subsidiaries 
Exhibit 19 – Impsat Fiber Networks at a glance 
Exhibit 20 – Impsat’s major subsidiaries – September 2002 
Exhibit 21 – Tele Norte Leste Participações SA at a glance 
Exhibit 22 – PSTN subsidiaries prior to reorganisation 
Exhibit 23 – TNL subsidiaries and affiliates – February 2003 
Exhibit 24 – Telecom Américas at a glance 
Exhibit 25 – Subsidiaries – December 2002 
Exhibit 26 – Telecom Argentina at a glance 
Exhibit 27 – Subsidiaries – June 2002 
Exhibit 28 – Telefónica Latinoamérica SA at a glance 
Exhibit 29 – Telefonica SA at a glance 
Exhibit 30 – Telefónica Group companies – 2002 
Exhibit 31 – Major subsidiaries – 2002 
Exhibit 32 – Telmex at a glance 

Table 1 – Fixed lines in service in selected countries – 2002 
Table 2 – Internet users in selected countries – 2002 
Table 3 – Estimated ADSL subscribers – 2003 
Table 4 – Mobile subscribers and penetration – 1998-2000; 2002; 2003 
Table 5 – Latin America market statistics - 2001 
Table 6 – Cellular revenues – 2000-2002; 2006 
Table 7 – Fixed-line growth – 1999-2002 
Table 8 – Fixed lines in service in selected countries – 2002 
Table 9 – Top 10 fixed-line operators by fixed telephone lines - 2002 
Table 10 – Verizon Latin America ownership - 2002 
Table 11 – Internet and computer penetration in selected countries - 2002 
Table 12 – Internet population by region – September 2002 
Table 13 – Internet users per region – 1999-2002, 2005 
Table 14 – Internet hosts in major countries - 2001 
Table 15 – Broadband households in Latin America - 2001-2007 
Table 16 – ADSL subscribers in Latin America – 2001-2006 
Table 17 – DSL lines in Latin America – January 2002 
Table 18 – Latin America Internet service provider markets - 2002 
Table 19 – Top 25 broadband service providers Latin America – 2002 
Table 20 – Cable modems in selected countries – 2001-2003 
Table 21 – DSL users in selected countries – January 2002 
Table 22 – ADSL subscribers in Latin America – 2001-2006 
Table 23 – Brazil ADSL deployment by company – 2001-2002 
Table 24 – Argentina ADSL deployment by company – 2001-2002 
Table 25 – Mexico ADSL deployment by company – 2001-2002 
Table 26 – E-commerce sales by country - 2001 
Table 27 – E-commerce revenues for Latin America – 2001, 2003, 2005 
Table 28 – Online banking users at selected Brazilian banks - 2000 
Table 29 – Online banking users in Mexico – 2000-2001, 2005 
Table 30 – Mobile subscribers - 1998-2002, 2010 
Table 31 – Cellular subscribers in Latin America by country – September 2002 
Table 32 – Top 10 cellular operators ranked by subscribers - September 2002 
Table 33 – Latin America network standards - 2001 
Table 34 – Predictions for network standards - 2007 
Table 35 – Subscribers by technology - 2002 
Table 36 – America Movil shareholders – June 2002 
Table 37 – Summary of wireless operations – September 2002 
Table 38 – Summary of wireless operations – September 2002 
Table 39 – Summary of wireless operations – June 2002 
Table 40 – BellSouth Latin America wireless operations – September 2002 
Table 41 – Wireless data users by technology - 2000-2007 
Table 42 – Wireless data market by country - 2001 
Table 43 – Estimated SMS volume South America – 2001-2002 
Table 44 – Active wireless Internet and PC Internet users – 2000-2005 
Table 45 – Homes connected for Cable TV – 2000-2002 
Table 46 – Pay TV subscribers - 1999-2002 
Table 47 –Pay TV subscribers by country – 2000, 2006 
Table 48 – Pay TV operator revenues - 2000, 2006 
Table 49 – Cable TV subscribers in selected countries – 2001-2002 
Table 50 – Households with cable TV - 2000 
Table 51 – Cable subscribers – 1995-2002 
Table 52 – DBS subscribers - 2000-2006 
Table 53 – Major players and subscriber numbers - 2001 
Table 54 – Consolidated revenue – 1996-2002 
Table 55 – Revenue breakdown by segment – 2002 
Table 56 – Subscribers by subsidiary – 2001-2002 
Table 57 – Telcel revenue overview – 1997-2002 
Table 58 – Telcel prepaid and postpaid subscribers – 1996-2002 
Table 59 – Telcel operating statistics – 1996-2001 
Table 60 – Comcel operating statistics – 2000-2002 
Table 61 – Conecel operating statistics – 2000-2002 
Table 62 – Sercom operating statistics – 2000-2001 
Table 63 – TracFone operating statistics – 2000-2002 
Table 64 – Subscribers per service – 2002 
Table 65 – Revenue overview - 1997-2002 
Table 66 – Revenue by segment - 2002 
Table 67 – Revenue overview – 1997-2002 
Table 68 – Subsidiaries, customers and PoPs (proportionate to ownership) – December 2002 
Table 69 – Movicom BellSouth, Argentina – operations overview – 1999-2002 
Table 70 – Brazil – operations overview – 1999-2002 
Table 71 – BellSouth Chile – operations overview – 1999-2002 
Table 72 – BellSouth Colombia – operations overview – 2000-2002 
Table 73 – BellSouth Ecuador – operations overview – 1999-2002 
Table 74 – BellSouth Guatemala – operations overview – 2000-2002 
Table 75 – BellSouth Nicaragua – operations overview – 1999-2002 
Table 76 – BellSouth Panama – operations overview – 1999-2002 
Table 77 – BellSouth Peru – operations overview – 1999-2002 
Table 78 – Movicom BellSouth, Uruguay – operations overview – 1999-2002 
Table 79 – Telcel BellSouth, Venezuela – operations overview – 1999-2002 
Table 80 – Revenue overview – 1998-2002 
Table 81 – Revenue by segment – 2002 
Table 82 – Access lines– 1998-2002 
Table 83 – Public telephones – 1998-2002 
Table 84 – DLD market share – December 2002 
Table 85 – Residential customers ADSL plans 
Table 86 – ADSL customers – 2001-2002 
Table 87 – Revenue overview – 1996-2002 
Table 88 – Revenue by segment – 2002 
Table 89 – Network overview – 1999-2002 
Table 90 – Fixed lines and cellular access lines in use – 1996-2001 
Table 91 – Domestic long-distance traffic – 1996-2001 
Table 92 – International traffic – 1996-2001 
Table 93 – Revenue overview – 1996-2002 
Table 94 – Revenue by segment – 2002 
Table 95 – Cellular subscribers – 1996-2002 
Table 96 – Revenue by segment – nine months to September 2002 
Table 97 – Revenue overview – 1996-2001 
Table 98 – Revenue by segment – 2001 
Table 99 – Data and value-added services breakdown – 2001 
Table 100 – Revenue by operating subsidiary – 2001 
Table 101 – Number of customers and annual change – 1996-2002 
Table 102 – Revenue overview – 1996-2002 
Table 103 – Revenue by segment – 2002 
Table 104 – Network overview – 1996-2002 
Table 105 – ADSL subscribers – 2001-2002 
Table 106 – Revenue overview – 2001-2002 
Table 107 – Revenue breakdown by segment – 2002 
Table 108 – Subscribers by subsidiary – 2001-2002 
Table 109 – Regional market share – March 2002 
Table 110 – ATL subscribers – 2001-2002 
Table 111 – Tess subscribers – 2001-2002 
Table 112 – Telet subscribers – 2001-2002 
Table 113 – Americel subscribers – 2001-2002 
Table 114 – Operating revenue – 1998-2002 
Table 115 – Revenue by segments – 2002 
Table 116 – Telecom Personal subscribers – 1999-2002 
Table 117 – Núcleo subscribers – 1999-2002 
Table 118 – Domestic fixed-line telephone network – 1997-2002 
Table 119 – Internet subscribers – 1999-2002 
Table 120 – Operating revenue – 2000-2002 
Table 121 – Operating revenue by company – 2002 
Table 122 – Lines in service by subsidiary, incl ADSL, ISDN and PBX– 1999-2002 
Table 123 – ADSL overview by subsidiary – 2000-2002 
Table 124 – Traffic by subsidiary– 2000-2002 
Table 125 – Revenue by subsidiary– 2000-2002 
Table 126 – CANTV network – 1999-2002 
Table 127 – Revenue overview – 1996-2002 
Table 128 – Revenue by segment – 2002 
Table 129 – Lines in service – 1996-2002 
Table 130 – Telephone service overview – 1999-2002 
Table 131 – Data and Internet overview – 2000-2002