 TELECOMUNICATIONS |
| Telephones |
In the first years of the 1990's the critical lack of development and the deterioration of the telecommunications' network were considered the number one obstacle to economic growth. After the disinvestments of the State and the opening up of the sector to new operators, the situation improved tremendously.
Early 1990's the telecommunication sector experienced a new beginning. In this new environment, and since 1994, the Ministry of Posts and Telecommunications was only to assume regulatory functions. Its traffic was attributed to Telecom Malagasy (Telma). The latest, according to the dispositions of the 93-001 law held the fixed phones monopoly whereas incorporated services were opened to free competition but subject to certain limits. Hence, national and international calls had to go through Telma's infrastructures. Then the 96-034 law that dealt with the institutional reform of the sector eliminated Telma's monopoly, and the operators of incorporated services did not have to go any longer through Telma. Donors required from the Malagasy State to grant one or more licenses via tenders. A second operator was to operate starting from September 1998. Telma's staff and management protested against the donors' demand accusing them of using the liberalization and privatization process as a mean to sell off the company. They won the cause because specifications stipulated that Telma had exclusive rights in fixed telephony for a two years' period after its privatization. However it seems that OMERT or Malgasy Bureau for Studies and Regulations of the Telecommunications (Office Malagasy d'Etudes et de Régulation des Télécommunications, whose main attributions include among others the granting of licenses and authorizations, had delivered a fixed telephone license to a company called Gulfsat for 111 cities in the island.
The network has been restored, improving the access to services that have become increasingly reliable. All large cities have automatic exchanges for telephone connections. The largest ones have numerical centers and connections are performed via satellite and radio waves. The four firms that operate in the country are now approaching regularly the Malagasy, who until the mid 1990's used the services of a unique operator.
As far as cellular phones are concerned, the Big Island has not being left behind. It all started in 1994 with Telecel, a subsidiary of Telecel International Ltd. that led the way to the exploitation of the AMPS analog network. Less than four years later the GSM entered the market with Madacom - a joint venture between the Hong Kong group Distacom - and Antaris, a branch of France Telecom. A bit later, came Sacel, a partnership between the Malay group Samem and Telma. Sacel had to shutdown on October 25, 2001 after getting its license revoked by OMERT. The company was accused of not having settled within time the USD 2.6 million worth of arrears overdue to the Customs and fiscal Administration. Cellular phones have become an everyday feature of life. Presently there are 75,000 cellular phones vs. 58,000 fixed lines.
| Between 1998 and 2000 the telecommunications' sector experienced an annual growth of 31% compared to 25% in the rest of Africa. In 2000 it represented USD 100 million, out of which 56.70% came from fixed phones, 35.40% from cellular phones and 8% from other sectors. Telma, 66% owned by the State and 34% by France Cables Radio has always been considered as one of the most flourishing Malagasy companies. In the year 2000 it had a turnover of USD 57.7 million, and net benefits worth USD 10.3 million. Its privatization was never unanimous but rather controversial; however in the end everybody accepted it resignedly, including the Minister of Posts and Telecommunications, who had always been opposed to it.
The revision of technical submissions on December 17 did not bring any surprise. The privatization committee, in order to justify the deferral of the deadline to hand the dossiers in, had plead that many large international companies were interested in buying Telma. Finally there were only two bidders: France Telecom and Distacom, two well-known groups in the country. The first one is a shareholder in Telma and is present in cellular telephones through Antaris-Smm. The second one, with more than 20 years of experience in telecommunications, is the major stockholder of Madacom, the first GSM operator in Madagascar. The one that takes over Telma will easily dominate the cellular phone market and eliminate the other.
| Internet |
Today ten operators are present on the Internet market. As Mr. Bertrand Beaujoin, General Director of Simicro points out "there are many players in the market, and players that play remarkably well". Simicro had to rely on its IBM distribution activity to get its license and to reach the number two position on the Internet market. But DTS, which is 51% held by Telma is the leader with 60% of the traffic and 65% of subscribers. Internet users, estimated at 10,000, do not represent but 0.07% of the population, still a very small percentage. Connection fees and hardware prices are not affordable to the average Malagasy revenues. Furthermore, computers and their components are taxed as high as 45%. All these factors seriously hamper the development of a key sector that intends to burst. Mr. Bertrand Beaujoin underlines that "computer is no longer a luxury item but a working tool, so taxes should be almost nil"
M. Bertrand Beaujoin
GM of Simicro
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Intro
