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Chad - Telecoms, Mobile and Broadband - Statistics and Analyses

July 2020 | 107 pages | ID: C189F24B27AEN
BuddeComm

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The Chad - Telecoms, Mobile and Broadband - Statistics and Analyses report includes all BuddeComm research data and analysis on this country. Covering trends and developments in telecommunications, mobile, internet, broadband, infrastructure and regulation.

EXECUTIVE SUMMARY

Chad drops internet excise duty to help reduce access costs

During the last decade Chad’s economy has been dominated by oil exports, and as a result economic growth has been adversely affected by the falling prices for the commodity on international markets. Recent economic difficulties have been exacerbated by civil unrest and by an influx of refugees from neighbouring countries.

The country remains one of the least developed on the continent, while telecom infrastructure is particularly poor, with penetration rates in all sectors – fixed, mobile and internet – well below African averages. Nevertheless, despite difficult operating conditions, large scale poverty and low spending power, Chad’s telecom market offers some potential for investors to develop services given the low starting base.

The tax on mobile operators has been increased in stages in recent years, from 4% in 2014 to 7% in 2016. In January 2018 it was increased again, to 9%. Of this, the Treasury received 4%, the regulator 2.5%, the Information and Communication Technologies Development Agency (ADETIC) 1.5%, the National School of Information and Communication Technologies (ENASTIC) 0.6% and ANSCIE 0.4%. In addition to this tax an 18% excise duty was introduced in 2016 on telecom services, which resulted in lower usage among subscribers and consequently a negative impact on operator revenue. This tax was removed under the 2020 Finance Act.

The two main operators Tigo Chad and Airtel Chad have invested in infrastructure and have become the main providers of voice and data services. However, the difficult economic conditions of the country, compounded by taxes on telecom services which have adversely affected customer spend and operator revenue, encouraged these players to consider exiting the market. Tigo Chad’s parent company Millicom International entered into discussions with Orange Group in April 2017 and with Econet in the following October regarding a potential sale, while in May 2017 Bharti Aircom announced that Chad was one of its regional markets which it considered offloading. Tigo Chad was sold to Maroc Telecom in June 2019 (though the unit retains the Tigo brand for now), marking the latter’s entry into a market which it has shown an interest in since 2014.

The mobile sector has developed steadily under the auspices of these two operators. The national telco and fixed-line operator Sotel Tchad (ST) operates the country’s third mobile network, as Salam Mobile, though it is mainly focussed on voice services since it depends on GPRS and EDGE technologies (which can provide only basic mobile data services). The country’s first 3G/4G mobile licence was awarded in April 2014.

Chad finally gained access to international fibre bandwidth in 2012. Its national backbone infrastructure remains underdeveloped. The World Bank-funded Central African Backbone (CAB) project takes in Chad, while the country is also party to a Trans-Saharan Backbone project which will link a fibre cable to Nigeria and Algeria. Investment in the national backbone is continuing and though progress across all 12 sectors has been hampered by delays a major link was opened in September 2019.

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:
  • Government approves three-part telecom infrastructure upgrade project;
  • Chad agrees to mobile roaming regulation along with the G5 Sahal countries;
  • 2020 Finance Act drops the 18% excise duty on internet access charges;
  • NDjamena - Adr? axis fibre link is opened;
  • Council of Ministers adopts draft decree to abolish roaming charges in the G5 Sahel area;
  • Tigo Chad extends LTE services;
  • Report update includes the regulator’s market updates to December 2018, operator data to March 2020, Telecom Maturity Index charts and analyses, assessment of the global impact of COVID-19 on the telecoms sector, recent market developments.
Companies mentioned in this report:

Sotel Tchad, TchadNet, Airtel Chad, Tigo Chad, Tchad Mobile (Orascom), Maroc Telecom, Sitcom, Salam Mobile
1 KEY STATISTICS

2 REGIONAL AFRICA MARKET COMPARISON

2.1 TMI vs GDP
2.2 Mobile and mobile broadband
2.3 Fixed and mobile broadband

3 COUNTRY OVERVIEW

4 COVID-19 AND ITS IMPACT ON THE TELECOM SECTOR

4.1 Economic considerations and responses
4.2 Mobile devices
4.3 Subscribers
4.4 Infrastructure

5 TELECOMMUNICATIONS MARKET

5.1 Market analysis

6 REGULATORY ENVIRONMENT

6.1 Regulatory authority
6.2 Fixed-line developments
6.3 Mobile network developments

7 MOBILE MARKET

7.1 Market analysis
7.2 Mobile infrastructure
7.3 Other infrastructure developments
7.4 Major mobile operators
7.5 Mobile content and applications

8 FIXED-LINE BROADBAND MARKET

8.1 Introduction and statistical overview

9 FIXED NETWORK OPERATOR

9.1 Sotel Tchad

10 TELECOMMUNICATIONS INFRASTRUCTURE

10.1 Data centres
10.2 International infrastructure
10.3 Submarine fibre optic cables
10.4 The Central African Backbone (CAB)
10.5 Other projects

11 APPENDIX HISTORIC DATA

12 GLOSSARY OF ABBREVIATIONS

13 RELATED REPORTS

LIST OF TABLES

Table 1 Top Level Country Statistics and Telco Authorities - Chad 2020 (e)
Table 2 Telecom market revenue by sector 2009 2018
Table 3 Change in telecom market investment by main operator 2015 2018
Table 4 Average annual telecom ARPU 2008- 2018
Table 5 Development of mobile revenue by operator 2016 2018
Table 6 Development of total mobile sector revenue 2011 2018
Table 7 Change in the market share telecom revenue by service 2013 2018
Table 8 Annual change in mobile revenue by service - 2014 2018
Table 9 Growth in the number of mobile base stations in service - 2009 2018
Table 10 Decline in average annual mobile voice ARPU 2012- 2018
Table 11 Growth in the number of mobile subscribers and penetration 2010 2025
Table 12 Change in the market share of mobile subscribers by operator 2010 2018
Table 13 Growth in mobile voice traffic by operator 2011 2018
Table 14 Development of SMS revenue 2012 2018
Table 15 Increase in SMS traffic 2013 2018
Table 16 Growth in the number of active mobile subscribers and penetration 2014 2025
Table 17 Growth in mobile broadband revenue 2013 2018
Table 18 Increase in the number of Airtel Chad's subscribers 2010 - 2018
Table 19 Increase in the number of Tigo Chad's subscribers 2008 2020
Table 20 Change in the number of Salam Mobile subscribers 2008 - 2018
Table 21 Change in the number of m-money subscribers 2015 2018
Table 22 Change in the market share of m-money revenue by operator 2014 2018
Table 23 Increase in m-money revenue by operator (XAF billion) 2014 2018
Table 24 Growth in the number of fixed line internet subscribers 2011 2025
Table 25 Change in average annual internet ARPU 2011 - 2018
Table 26 Growth in the number of total internet subscribers 2009 2018
Table 27 Development of average annual internet ARPU 2013 2018
Table 28 Growth in total internet sector revenue 2011 2018
Table 29 National fibre backbone section routes to be deployed
Table 30 Growth in the number of fixed lines in service and teledensity 2010 2025
Table 31 Change in average annual fixed-line ARPU 2012 - 2018
Table 32 Increase in international internet bandwidth 2010 2018
Table 33 Historic - Fixed lines in service and teledensity in Chad 1999 2009
Table 34 - Historic - Mobile subscribers and penetration rate in Chad - 2000 2009
Table 35 Historic - Internet users and penetration rate in Chad 1998 2009
Table 36 Historic - Airtel Chad mobile subscribers 2005 - 2009
Chart 1 Overall Africa view - Telecoms Maturity Index vs GDP per Capita 2018
Chart 2 Central Africa - Telecoms Maturity Index vs GDP per Capita 2018
Chart 3 Africa Bottom-tier Telecoms Maturity Index (Market Emergents) 2018
Chart 4 Central Africa Telecoms Maturity Index by country 2018
Chart 5 Central Africa mobile subscriber penetration versus mobile broadband penetration 2018
Chart 6 Central Africa fixed and mobile penetration rates 2018
Chart 7 Telecom market revenue by sector (XAF Billion) 2008 2018
Chart 8 Change in telecom market investment by main operator 2015 2018
Chart 9 Average annual voice ARPU (mobile and fixed) 2008- 2018
Chart 10 Development of mobile revenue by operator 2016 2018
Chart 11 Development of total mobile sector revenue - 2011 2018
Chart 12 Change in the market share telecom revenue by service (%) 2013 2018
Chart 13 Growth in the number of mobile base stations in service - 2009 2018
Chart 14 Decline in average annual mobile voice ARPU 2012- 2018
Chart 15 Growth in the number of mobile subscribers and penetration 2010 2025
Chart 16 Change in the market share of mobile subscribers by operator (%) 2010 2018
Chart 17 Growth in mobile voice traffic by operator 2011 2018
Chart 18 Development of SMS revenue 2012 2018
Chart 19 Increase in SMS traffic 2013 2018
Chart 20 Growth in the number of active mobile subscribers and penetration 2014 2025
Chart 21 Growth in mobile broadband revenue (XAF billion) 2013 2018
Chart 22 Increase in the number of Airtel Chad's subscribers 2010 - 2018
Chart 23 Increase in the number of Tigo Chad's subscribers 2008 2020
Chart 24 Change in the number of Salam Mobile subscribers 2008 - 2018
Chart 25 Change in the number of m-money subscribers 2015 2018
Chart 26 Change in the market share of m-money revenue by operator 2014 2018
Chart 27 Increase in m-money revenue by operator (XAF billion) 2014 2018
Chart 28 Growth in the number of fixed-line internet subscribers 2011 2025
Chart 29 Change in average annual internet ARPU 2011 - 2018
Chart 30 Total internet subscribers 2009 2018
Chart 31 Development of average annual internet ARPU 2013 2018
Chart 32 Growth in total internet sector revenue 2011 2018
Chart 33 Growth in the number of fixed lines in service and teledensity 2010 2025
Chart 34 Change in average annual fixed-line ARPU (XAF) 2012 - 2018
Chart 35 Increase in international internet bandwidth (Mb/s) 2010 2018
Exhibit 1 Generalised Market Characteristics by Market Segment
Exhibit 2 Central Africa - Key Characteristics of Telecoms Markets by Country
Exhibit 3 Map of Chad


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