Chad's telecom market offers potential amid the challenges

Chad's telecom market offers potential amid the challenges

Chad remains one of Africa’s least developed markets.

According to Research & Markets, telecom infrastructure is particularly poor and penetration rates in all sectors - fixed, mobile and internet – are well below African averages.

The two main operators, Millicom International and Bharti Airtel, have invested in infrastructure and have become the main providers of voice and data services. However, the difficult economic conditions of the country, compounded by a new 18% tax on telecom services which has adversely affected customer spend and consequently on operator revenue, have encouraged these players to consider exiting the market.

Millicom earlier in 2017 was reported to be in discussions with Orange Group regarding a potential sale, while in May 2017 Bharti Aircom announced that Chad was one of its regional markets which it was considering offloading. Nevertheless, despite difficult operating conditions, large scale poverty and low spending power, Chad's telecom market offers some potential for investors to develop services given the low starting base.

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