Overview:

Executive summary

Market restructuring opens up new opportunities

This annual report provides a comprehensive overview of trends and developments in Angola’s telecommunications market. Subjects covered include:

• Key statistics;
• Market and industry overviews;
• The impact of the global economic crisis;
• Government policies affecting the telecoms industry;
• Market liberalisation and regulatory issues;
• Major players (fixed, mobile and broadband);
• Telecoms operators – privatisation, restructuring, acquisitions, new licences;
• Infrastructure development;
• International submarine fibre optic cables;
• National fibre backbone network;
• Mobile voice and data markets;
• Internet and broadband development and pricing, including 3G mobile;
• Convergence (voice/data, fixed/wireless/mobile);
• Mobile market forecasts for 2013 and 2016.

With peace restored in 2002 after decades of civil war, foreign investment in Angola has multiplied and the mobile market has soared despite a continued duopoly between Unitel and Angola Telecom’s Movicel. The country is the second-largest producer of oil in sub-Saharan Africa, and the rise of oil prices has led to double-digit GDP growth in recent years. However, following a mild recession in 2009, the economy is forecast to grow more in line with the African average going forward, at around 6% p.a.

Competition was also introduced in the underdeveloped fixed-line market, but launch delays and consolidation among the newly licensed players have led to a duopoly in this sector as well between Angola Telecom and Mercury Telecom. The long awaited start of Mundo Startel’s fixed-wireless operations in 2009 has created a third force in this market.

The mobile network operators have launched 3G services and are shaking up the broadband market where fixed-wireless operators and ISPs with CDMA and WiMAX-based networks have been competing with Angola Telecom’s ADSL and cable modem services. However, prices are still beyond the reach of most Angolans due to the high cost of international bandwidth as a result of Angola Telecom’s monopolisation of the SAT-3/WASC international fibre optic submarine cable. The landing of new international fibre systems in the country is expected to change this from 2011 onwards, coupled with a US$500 million national fibre backbone network rollout.

Angola Telecom is going through a restructuring process with the help of international consultants. A majority stake in its mobile unit, Movicel has been sold to private investors and a migration from CDMA to GSM/UMTS technology has been announced. The creation of Infrasat as an independent satellite business unit and the Angola Cable consortium for international fibre connections are additional steps towards greater liberalisation of the country’s telecom market, improved efficiency of the national telco and its eventual privatisation. A third mobile operator licence has also been discussed.

This report includes an overview and analysis of Angola’s telecom market, key statistics, profiles of major players, and scenario forecasts for the mobile market to 2013 and 2016.

Market highlights:

• Recovery from global economic crisis;
• Estimates for mobile, fixed-line and internet market for 2011 and 2012;
• Forecasts for mobile market to 2013 and 2016;
• Profiles of major players in all market sectors;
• Angola Telecom restructuring;
• Competition in international fibre access expected in 2011/12;
• Coordinated trans-sector national fibre rollout.

Estimated market penetration rates in Angola’s telecoms sector – end-2011

Data in this report is the latest available at the time of preparation and may not be for the current year.

1. Executive summary
2. Key statistics
2.1 Country overview
3. Telecommunications market
3.1 Market analysis 2011
4. Regulatory environment
4.1 Basic Telecommunications Law 2001
4.2 Regulatory authority
4.2.1 Angola Institute of Communications (INACOM)
4.3 Universal Service Fund
4.4 Interconnection
4.5 Telecom sector liberalisation in Angola
4.6 Foreign ownership
5. Fixed network operators in Angola
5.1 Fixed-line statistics
5.2 Angola Telecom (AT)
5.2.1 Privatisation
5.2.2 Fixed-line infrastructure
5.2.3 Wireless local loop
5.2.4 National fibre backbone network
5.2.5 Angosat
5.2.6 Infrasat
5.3 Mercury Telecom (MS Telcom)
5.3.1 National backbone network
5.4 Telesel/Nexus
5.5 MundStartel
5.6 Wezacom
6. International infrastructure
6.1 Satellite
6.2 Submarine cable networks
6.2.1 SAT-3/WASC
6.2.2 New submarine fibre projects
7. Internet market
7.1 A difficult beginning in war times
7.2 Internet statistics
7.3 Public telecentres and cybercafes
7.4 Internet Exchange Point (IXP)
7.5 Angola’s ISP market
7.5.1 Nexus
7.5.2 Angola Communication Systems (ACS)
7.5.3 MoviNet
7.5.4 Snet
7.5.5 Multitel
7.5.6 Maxnet
8. Broadband market
8.1 ADSL
8.2 Wireless broadband
9. Convergence
9.1 Voice over Internet Protocol (VoIP) telephony
9.2 Broadband over Cable TV (CATV)
9.3 Triple play
9.4 E-government
10. Mobile communications
10.1 Overview of Angola’s mobile market
10.1.1 Mobile statistics
10.2 Major mobile operators
10.2.1 Movicel (Angola Telecom)
10.2.2 Unitel
10.3 Third generation (3G) mobile data services
10.4 Satellite mobile
11. Forecasts
11.1 Forecast mobile market – 2013; 2016
11.2 Notes on scenariforecasts
12. Related reports

Table 1 – Country statistics Angola – 2010
Table 2 – Fixed-line network statistics – 2010
Table 3 – Internet provider statistics – 2010
Table 4 – Internet user statistics – 2010
Table 5 – Mobile statistics – 2010
Table 6 – National telecommunications authority
Table 7 – Fixed lines in service/installed and teledensity – 2000 - 2012
Table 8 – Internet users and penetration rate – 1999 - 2012
Table 9 – Mobile subscribers and penetration rate – 1999 - 2012
Table 10 – Unitel 3G broadband pricing – 2011
Table 11 – Forecast mobile subscribers – 2013; 2016

Chart 1 – Mobile subscribers in Angola – 2002 - 2012