STATISTICS AND TARIFF INFORMATION IN TELECOM SECTOR AS OF SEPTEMBER 2013

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1 STATISTICS AND TARIFF INFORMATION IN TELECOM SECTOR AS OF SEPTEMBER 2013 Prepared by: Economic and Market Analysis Section

2 CONTENTS I. preliminary remarks... 4 II. summary MOBILE AND FIXED TELEPHONE SUBSCRIPTIONS SUBSCRIPTIONS, MARKET SHARE AND COVERAGE MOBILE TELEPHONE TARIFF STRUCTURE FIXED TELEPHONE NETWORK TRAFFIC STATISTICS TOTAL OUTGOING AND INCOMING MOBILE CALLS(IN MINUTES) SMS TRAFFIC INTERNET SERVICE PROVISION INTERNET SUBSCRIBERS BROADBAND INTERNET MARKET SHARE MOBILE INTERNET MARKET SHARE AS OF SEPTEMBER INTERNATIONAL INTERNET BANDWIDTH INTERNET TARIFF MOBILE INTERNET TARIFF FIXED INTERNET TARIFF EMPLOYMENT IN TELECOMMUNICATION SECTOR AS OF SEPTEMBER Page 2 of 18

3 LIST OF TABLES Table 1: Number of mobile and fixed telephone service subscriptions per operator... 5 Table 2: Mobile telephone network coverage as of September 2013 per type of technology and per operator as of September Table 3: International roaming subscribers trend Table 4. Outgoing and Incoming traffic for the 3 rd Quarter Table 5: SMS traffic per operator as of September Table 6. Licensed internet service providers as of September Table7. Internet subscribers per category per operator as of September Table 8. International internet bandwidth (Mbps) per operator as of September Table 9: Number of staffs employed in Telecommunication sectors as of September LIST OF FIGURES Figure 1: Development of mobile telephone Subscribers as of September Figure 2: Evolution of postpaid and prepaid mobile subscriptions market share per operator as of September Figure 3: Evolution of total mobile telephones market share per operator Figure 4. Mobile telephone voice tariff structures, per operator as of September Figure 5: Mobile telephones tariffs as of September Figure 6: Trend in internet penetration rate Figure 7: Evolution of fixed broadband market share for the last two quarters Figure 8: Mobile internet market share as of September Figure 9: Mobile normal Internet tariff (Rwf/Mb) as of September Figure 10: Fixed Internet tariffs per operator as of September 2013 (In Rwf VAT Inclusive) Figure 12: Employment status in Telecommunication Sector as of September 2013 (by gender) Page 3 of 18

4 I. PRELIMINARY REMARKS The information compiled in this report is from telecom companies and Internet Service Providers. Subscription in this report is defined as active subscribers that have generated revenue within three months. II. SUMMARY This is a third quarter 2013 report; it covers the period from June up to September. This report includes information on mobile telephone, fixed telephone, internet, and tariff (voice call tariff, and data tariff), traffic and employment. In this period under review the mobile telephone subscribers increased from 6,415,343 to 6,709,785 this portrays a 4.3% increase. Hence, a mobile penetration rate of 63.7% as compared to 60.9% recorded at end of the previous quarter. Fixed telephone subscriptions in this quarter under review were found to be 43, 963 from 42,800 which represents 0.42% penetration rate. On internet data segment, the number of internet subscriptions is 1,674,053 which represent the internet penetration rate of 15.8%. This shows an increase of 26.4% as compared to the second quarter of year 2013; this increase is mainly brought about by the widespread of use of mobile internet services. Page 4 of 18

5 1. MOBILE AND FIXED TELEPHONE SUBSCRIPTIONS As of September 2013, the major players in mobile telephony include MTN Rwandacell, TIGO Rwanda Ltd and AIRTEL Rwanda Ltd. Table 1: Number of mobile and fixed telephone service subscriptions per operator Operators Active subscribers Fixed Teledensity Mobile Teledens ity General teledensity Mobile Active subscribers Fixed Telephony MTN Rwanda 3,636,976 12,197 TIGO Rwanda 2,099, % 63.7% 64.12% AIRTEL 973,000 RWANDA LTD Liquid Telecom - 31,766 Ltd Total 6,709,785 43,963 The above table indicates that mobile penetration rate reached 63.7% as of September 2013 against 60.9 % on June 2013 this is mainly due to the increase in mobile telephone subscriptions 1.1. SUBSCRIPTIONS, MARKET SHARE AND COVERAGE Figure 1: Development of mobile telephone Subscribers as of September 2013 Page 5 of 18

6 Figure 2: Evolution of postpaid and prepaid mobile subscriptions market share per operator as of September 2013 Figure 3: Evolution of total mobile telephones market share per operator. MTN Rwanda is still leading in terms of mobile subscribers with 54% of the market share followed by Tigo which has 31%, Airtel Rwanda has the lowest market share of 15%. The coverage for each network is depicted in the table below: Page 6 of 18

7 Table 2: Mobile telephone network coverage as of September 2013 per type of technology and per operator as of September 2013 Geographic coverage 2G 2.5G 3G 3.5G MTN Rwanda Ltd TIGO Rwanda Ltd AIRTEL Rwanda Ltd Population Coverage MTN Rwanda Ltd TIGO Rwanda Ltd AIRTEL Rwanda Ltd Table 3: International roaming subscribers trend st Quarter nd Quarter rd Quarter 2013 Incoming outgoing Incoming outgoing Incoming outgoing MTN LTD 293, , , , , ,217 TIGO LTD 35,324 51,952 97, ,399 75, ,648 AIRTEL LTD 83,827 39, MOBILE TELEPHONE TARIFF STRUCTURE In general, the tariffs for mobile telephone calls remained stable for the period under review as described below ; Figure 4. Mobile telephone voice tariff structures, per operator as of September MTN Rwanda Ltd Tigo Rwanda Ltd Airtel Rwanda Ltd Onnet Tariff Offnet tariff Promotional tariff 45(on offnet) 10 East Africa tariff 120(Kenya) (Uganda) 1 1 MTN Rwanda Ltd has different tariffs for Uganda and Kenya it costs 120 Rwf to make a call to Kenya and 216Rwf to Uganda. Page 7 of 18

8 Rest of Africa tariff US/Canada/China/India Uk/France/Belgium(promotion) 40 International Tariff Satellite 4,833 4,500 5,000 Figure 5: Mobile telephones tariffs as of September FIXED TELEPHONE NETWORK Liquid Telecom and MTN Rwanda Ltd are the fixed line voice service providers as of September Below is the tariff structure for fixed line telephone. Page 8 of 18

9 Figure 6 :Fixed telephone service tariff structure Figure 7: Fixed telephone service Market share per operator as of September 2013 Page 9 of 18

10 3. TRAFFIC STATISTICS 3.1. TOTAL OUTGOING AND INCOMING MOBILE CALLS(IN MINUTES) Table 4. Outgoing and Incoming traffic for the 3 rd Quarter 2013 OUTGOING MINUTES MTN Rwanda Ltd AIRTEL Rwanda Ltd TIGO Rwanda Ltd Total On net 676,317, ,018, ,708,820 1,892,044,806 Off net 19,870,266 12,198,625 16,046,206 48,115,097 International 16,920,591 1,794,864 2,510,501 21,225,956 INCOMING MINUTES Off net 26,139,367 5,933,816 18,173,088 50,246,271 International 17,223,823 3,238,516 1,928,422 22,390,761 Source: operators returns Figure 8: Outgoing voice traffic market share per operator and per type of call as of September 2013 Figure 9: Incoming voice traffic market share per operator and per type of call as of September 2013 Page 10 of 18

11 3.2. SMS TRAFFIC Table 5: SMS traffic per operator as of September 2013 Outgoing SMS MTN Rwanda Ltd AIRTEL Rwanda Ltd Tigo Rwanda Ltd Total On net 116,180,437 11,399, ,062, ,642,703 Off net 1,945,549 4,141, ,397 7,890,438 International 2,236, , ,339 2,911,966 Incoming SMS Off net 2,687, ,742 2,413,006 5,709,144 International 261,495 3,626, , INTERNET SERVICE PROVISION Page 11 of 18

12 There are nine (9) licensed Internet Service Providers in the country including National telecommunication service operators (fixed and mobile). Table 6. Licensed internet service providers as of September 2013 ISPs LICENSED FROM(Year) STATUS MTN Rwanda Ltd 2006 Operational Liquid Telecom Ltd 2013 Operational TIGO Rwanda Ltd 2008 Operational New Artel Ltd 2004 Operational ISPA Ltd 2006 Operational 4G NETWORKS Ltd 2009 Operational BSC Ltd 2010 Operational AIRTEL Rwanda Ltd 2011 Operational AXIOM 2013 Operational It is important to note that during the period under review, 4G Rwanda ISP license was cancelled due to the non compliance to license obligation while AXIOM LTD was issued an ISP license. It is also within the same quarter that Rwandatel liquidation process was ended which culminated into the licensing of Liquid Telecom that took over Rwandatel s assets and merged with Altech Stream Ltd to offer Internet and fixed telephone services INTERNET SUBSCRIBERS The table below illustrates the breakdown of internet subscribers per category and per operator: Page 12 of 18

13 Table7. Internet subscribers per category per operator as of September 2013 Mobile internet Total Fixed internet Narrowband( 256kbps) Broadband( 256kbps) Liquid Telecom Ltd ,730 MTN Rwanda Ltd , ,728 TIGO Ltd , ,710 New Artel Ltd ISPA Ltd G Networks Ltd BSC Ltd Airtel Rwanda Ltd , ,068 1,019 2,861 1,670,173 1,674,053 Figure 6: Trend in internet penetration rate Internet penetration rate has continued to show an increase, this is attributed to the sharp increase in mobile internet subscriptions. Page 13 of 18

14 4.2. BROADBAND INTERNET MARKET SHARE The figures below compare broadband market shares in terms of subscribers for the last three quarters: Figure 7: Evolution of fixed broadband market share for the last two quarters MOBILE INTERNET MARKET SHARE AS OF SEPTEMBER 2013 Figure 8: Mobile internet market share as of September 2013 Page 14 of 18

15 5. INTERNATIONAL INTERNET BANDWIDTH Table 8. International internet bandwidth (Mbps) per operator as of September 2013 Type MTN Ltd Liquid Telecom Ltd New Artel TIGO ltd ISPA BSC 4G Network Airtel ltd Total Up link 1, Downlink 1, , INTERNET TARIFF 6.1. MOBILE INTERNET TARIFF Figure 9: Mobile normal Internet tariff (Rwf/Mb) as of September FIXED INTERNET TARIFF Figure 10: Fixed Internet tariffs per operator as of September 2013 (In Rwf VAT Inclusive) Liquid Telecom Ltd Wireless 128/64 Kbps Residential 64, /64 Kbps Business 64, /126 Kbps 236, /192 Kbps 354, /256Kbps 743,400 1Mbps 1,534,000 Fiber 64 Kbps 50, Kbps 100, Kbps 141,600 Page 15 of 18

16 512Kbps 177,000 1Mbps 354,000 2Mbps 590,000 3Mbps 826,000 4Mbps 1,062,000 5Mbps 1,298,000 6Mbps 1,534,000 7Mbps 1,770,000 8Mbps 2,006,000 9Mbps 2,242,000 10Mbps 2,478,000 Copper 64 Kbps Data Copper-Kigali 101, Kbps Data Copper-Up country 185, kbps Data Copper-Kigali 147, kbps Data Copper-Up country 268, kbps-DATA(Copper-kigali) 213, kbps-DATA(copper -Up country) 415, kbps DATA(Cooper) 296, kbps DATA(Cooper) 479, kbps DATA(Cooper) 544,079 EVDO 35,000 ISPA 128Kbps-64Kbps 59, Kps-128Kbps 118,000 BSC(VAT Exclusive) VPN ( Unit price per 3 Mbps) 180,000/Mbps Fiber Internet connection 1 Mbps 270,000 3 Mbps 630,000 WiBro Services Unit price CPE Device 85,000 EGG Device 72,000 USB Device 20,000 USB monthly subscription 20,000 Monthly fee EGG and CPE 30,000 Collocation services Unit Price 150,000 Web and Mail Hosting services Page 16 of 18

17 PLAN A 150,000 PLAN B 250,000 PLAN C 600,000 PLAN D 1,000,000 PLAN E 1,500,000 PLAN F 2,000,000 Virtual Hosting Services Set up fee 50,000 Bronze 125,000 Silver 168,000 Gold 225,000 Platinum 360,000 NEW ARTEL(Mbps) 128/128Kbps 65, /256 Kbps 131,103 1 Mbps Kbps 524,410 4G NETWORKS 256kbps Wireless 30, kbps Wireless 45,375 1 Mb Wireless 75,000 2Mb Wireless dedicated 200,000 2Mb Wireless 350,000 3Mb Wireless 450,000 Source: RURA Operators returns 7. EMPLOYMENT IN TELECOMMUNICATION SECTOR AS OF SEPTEMBER ,148 people are employed in Telecommunication sector, 792 are permanent staffs and 356staffs are temporary staffs. Of these staff 14% are women and 86% are men as it is shown in the following figure. Table 9: Number of staffs employed in Telecommunication sectors as of September 2013 Staffs Female Temporary Foreign Permanent Total staff MTN Rwanda Ltd TIGO Rwanda Ltd AIRTEL Rwanda Ltd Liquid Telecom Ltd BSC G Networks ISPA Page 17 of 18

18 New artel ,148 Figure 11: Employment status in Telecommunication Sector as of September 2013 (by gender) Page 18 of 18

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