Stronger competition will boost mobile penetration in Mozambique

Stronger competition will boost mobile penetration in Mozambique

Competition has driven mobile growth in Mozambique but penetration remains relatively low, according to Research & Markets.

Although delayed by the long civil war which ended in 1992, Mozambique was one of the first countries in the region to embark upon telecom reform. As a result, some parts of the sector have seen the introduction of measures which have promoted competition, and which promote access to infrastructure.

The mobile segment in particular has shown strong growth since the introduction of competition in 2003 between Vodacom Mozambique and mCel, the incumbent mobile subsidiary of the national telco Telecomunicações de Moçambique (TdM). Mobile penetration remains far below the average for the region, and given that the country has relatively low fixed-line penetration there is considerable room for further growth in coming years. This has been stimulated by the launch of commercial services from the third operator Movitel, which is backed by Vietnam's Viettel.

In recent years the government has drafted legislation aimed at enforcing the registration of SIM cards (with mixed results, though progress was made during 2016) and also the sharing of network infrastructure. These measures are aimed at improving security (in relation to SIM card registration), reducing operational and investment costs, and enabling players to provide converged voice, data and TV services over single networks.

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