{"id":1680,"date":"2011-05-03T10:12:10","date_gmt":"2011-05-03T10:12:10","guid":{"rendered":"http:\/\/www.faceofmalawi.com\/?p=1680"},"modified":"2011-05-03T10:12:10","modified_gmt":"2011-05-03T10:12:10","slug":"the-long-road-to-more-mobile-competition-in-malawi","status":"publish","type":"post","link":"https:\/\/new.faceofmalawi.com\/index.php\/2011\/05\/03\/the-long-road-to-more-mobile-competition-in-malawi\/","title":{"rendered":"The long road to more mobile competition in Malawi"},"content":{"rendered":"<p> <img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-1681\" title=\"moi\" src=\"http:\/\/www.faceofmalawi.com\/wp-content\/uploads\/2011\/05\/moi.jpg\" alt=\"\" width=\"300\" height=\"206\" \/>Malawi\u2019s mobile penetration is less than  half the African average, which means there is excellent growth  potential once the market moves beyond the duopoly held by Bharti Airtel  (formerly Zain) and Telecom Networks Malawi (TNM). The government has  licensed various additional players since 2002, but so far no new mobile  services have actually launched.<\/p>\n<p>In  2002, the industry regulator, MACRA issued a licence to Malawi Mobile  Ltd (MML), a consortium led by Mauritius Telecom. In 2005, however,  after giving the new operator a second 90-days deadline, the licence was  revoked on the basis that MML had failed to fulfil its licence  obligations to introduce a service. MML on the other hand claimed that  the deadline had been extended and that the company had paid required  fines, but MACRA went ahead and blocked a US$25 million three-year  exclusive contract with Ericsson to supply MML with network  infrastructure and related services, including prepaid and intelligent  network platforms and an international gateway.<\/p>\n<p>Two  weeks later the Board of MACRA was sacked by the country\u2019s Attorney  General, an arrest warrant issued for its chairman who was out of the  country at the time, and a leading South African executive of MML and  his lawyer were arrested.<\/p>\n<p>MML lost an appeal to retain its licence in 2006. The company was said to be associated with the former President of Malawi.<\/p>\n<p>The  licensing process was revived in 2007 and eleven companies expressed  interest. Five companies submitted formal applications, including three  local companies:<\/p>\n<ul>\n<li>Malcom;<\/li>\n<li>Globally Advanced Integrated Networks (GAIN);<\/li>\n<li>Megatel Communications;<\/li>\n<li>Econet Wireless (South Africa);<\/li>\n<li>Millennium Global Telecom (USA).<\/li>\n<\/ul>\n<p>With  the exception of Econet, none of the bidders had an existing presence  in Africa. In their bids they had to convince MACRA of their financial  and technical capability. The two foreign groups, Econet and Millenium  Global were seen as the frontrunners. However, the licensing process was  delayed by the absence of a board of directors at MACRA until the  regulator announced in July 2008 the licence would be awarded to GAIN.<\/p>\n<p>GAIN  renamed itself G-Mobile but was slow to start a network rollout. In  April 2009 the company was given a ten-months\u2019 deadline to launch  services or see its licence revoked, which prompted it to announce it  would invest US$40 million within five years and create 900 jobs. In  July it signed a US$90 million partnership deal with South Africa\u2019s  Beryl Telecoms which was challenged in the Commercial Court but granted  in September.<\/p>\n<p>A Build, Operate and  Transfer (BOT) contract was awarded to Chinese equipment vendor ZTE in  December 2009, but at the same time G-Mobile announced it would not be  able to meet its deadline for the launch of services. Another extension  was granted in March 2010, but two months later the company was issued a  US$6.9 million fine by MACRA for failing to deploy its network.  However, G-Mobile took the matter to the High Court and gained an  injunction against the fine until a judicial review could be carried  out. In August the company announced it had awarded a management  contract to Telkom Management Services of South Africa and already  invested US$25 million into the network rollout with plans to spend a  total of US$150 million over the next three years. Beryl Telecoms  announced another capital injection of US$30 million. However, following  a final deadline, MACRA revoked the licence in September 2010, but this  decision was overturned by the High Court a few weeks later. G-Mobile  announced it would continue its network rollout.<\/p>\n<p>Already  in 2008 MACRA had advertised its intention to licence a fourth mobile  network. A licence was awarded to Dubai-based Expresso  Telecommunications (the international arm of Sudan\u2019s Sudatel) and Lacell  of Singapore in 2009, but it was suspended amidst concerns that the  tendering process had not been fair. MACRA relaunched the licence tender  in December 2009 and Lebanon\u2019s Comium was mooted to be the winner, but  again allegations of corruption surfaced and delayed the process.<\/p>\n<p>As  a consequence of the difficulties with introducing more competition in  the mobile sector, MACRA announced it would introduce a new converged  licensing regime in 2011, following in the footsteps of several of  Malawi\u2019s neighbours. The new regime will allow the two fixed-line  operators, Malawi Telecommunications (MTL) and Access Communications  (ACL) to enter the mobile market as well. Both are already operating  CDMA-based fixed-wireless networks which also support broadband access  using EV-DO technology.<\/p>\n<p>BuddeComm has updated its Malawi report, including scenario forecasts for the mobile market to 2013 and 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Malawi\u2019s mobile penetration is less than half the African average, which means there is excellent growth potential once the market [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1681,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[400],"tags":[357,399],"class_list":["post-1680","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-development","tag-mobile-phone"],"_links":{"self":[{"href":"https:\/\/new.faceofmalawi.com\/index.php\/wp-json\/wp\/v2\/posts\/1680","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.faceofmalawi.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.faceofmalawi.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.faceofmalawi.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new.faceofmalawi.com\/index.php\/wp-json\/wp\/v2\/comments?post=1680"}],"version-history":[{"count":0,"href":"https:\/\/new.faceofmalawi.com\/index.php\/wp-json\/wp\/v2\/posts\/1680\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.faceofmalawi.com\/index.php\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/new.faceofmalawi.com\/index.php\/wp-json\/wp\/v2\/media?parent=1680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.faceofmalawi.com\/index.php\/wp-json\/wp\/v2\/categories?post=1680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.faceofmalawi.com\/index.php\/wp-json\/wp\/v2\/tags?post=1680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}