Mozambique ICT Report

Transcription

Mozambique ICT Report
Political Economy
of Internet and Mobile Phones:
Mozambique
Research Coordinator: Dr. Sarah Chiumbu
Country Researcher: Fernando Goncalves
Political Economy of Internet and Mobile Phones: Mozambique
FOREWORD
In 2010 the Department of Media Studies at the University of the Witwatersrand, with
support from the Open Society Initiative of Southern Africa (OSISA) embarked on a twoyear long project titled, ICT Policy and New Media Cultures in Southern Africa. The
research project involved a two-tiered initiative aimed at exploring the political
economy of new media industries in five Southern African countries; South Africa,
Mozambique, Malawi, Zambia and Zimbabwe. The first tier of the project entailed
detailed ICT policy reports on each of the countries, while the second tier involved
ethnographic studies on the use of ICTs by ordinary citizens, civil society and social
movements.
With a keen interest on the internet and mobile phones in particular, the research
sought to examine the extent to which forms of ownership and financing of these media
enhance or militate against universal access of citizens to these media. The focus on
universal access remained crucial to the study, given that it is seen as corollary to the
empowerment of citizens and the unleashing of their democratic and developmental
potential in social, political, and economic processes.
In a continent that is generally lagging behind in the digital age, the internet and mobile
phones are being seen as key to leapfrogging into the future. With the social uprisings of
the Middle East and North Africa, questions about the role of the internet and mobile
phones, particularly in relation to citizen empowerment, are becoming more and more
important. As such, mapping the development of these technologies in terms of
emerging ownership patterns and regulatory systems and norms becomes critical, as
these have direct implications for citizen access.
The following report is part of a series of five country reports compiled in fulfilment of
the first tier of the project. The reports specifically address questions of ownership,
financing and regulation of the specified Internet and mobile phone industries and how
this affects universal access to new media services by citizens in terms of affordability,
accessibility, and availability. Weak regulatory bodies across region are perhaps the
strongest link across all five reports. The result is ensuing problems of lack of
competition, hostile markets environments for new comers and the incumbent factor of
exorbitant tariffs rates. Despite the more common assumption of the digital divide
segregating Africa from joining the digital revolution issues of accessibility and
affordability are actually at the forefront of this challenge. The five country reports
explore this phenomenon with an overwhelmingly strong trend vindicating fragile
regulatory structures as the chief culprit. Similar trends include restrictive national ICT
policies which present unwelcome barriers to broader initiatives of universal access.
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Political Economy of Internet and Mobile Phones: Mozambique
TABLE OF CONTENTS
FOREWORD .............................................................................................................................................. i
TABLE OF CONTENTS............................................................................................................................... ii
LIST OF FIGURES ..................................................................................................................................... iv
LIST OF TABLES ....................................................................................................................................... iv
EXECUTIVE SUMMARY ............................................................................................................................ 1
1.
2.
3.
4.
5.
COUNTRY FACTS.............................................................................................................................. 2
1.1.
Political Structure .................................................................................................................. 2
1.2.
Economic Structure ............................................................................................................... 3
1.3.
Socio and Economic Setting .................................................................................................. 4
CONSTITUTION................................................................................................................................ 5
2.1.
Freedom of Expression ......................................................................................................... 5
2.2.
Policy and Institutions .......................................................................................................... 6
MEDIA AND COMMUNICATIONS LANDSCAPE ................................................................................ 7
3.1.
Print Media ............................................................................................................................. 7
3.2.
Electronic/Broadcasting Media............................................................................................... 8
3.3.
Policy and Regulation of the Media ........................................................................................ 8
INFRASTRUCTURE ........................................................................................................................... 9
4.1.
Telecom infrastructure ........................................................................................................... 9
4.2.
Electricity............................................................................................................................... 10
4.3.
Fibre/Wireless Networks ...................................................................................................... 11
4.4.
Broadband............................................................................................................................. 12
4.5.
3G and 4G Mobile Technology .............................................................................................. 13
STATUS OF INTERNET AND MOBILE PHONES ............................................................................... 13
5.1.
5.1.1.
Access ............................................................................................................................ 13
5.1.2.
Number of Internet Service Providers .......................................................................... 14
5.2.
ii
Status - Internet Penetration ................................................................................................ 13
Status - Mobile Phones Penetration ..................................................................................... 15
5.2.1.
Number of Mobile Phone Companies........................................................................... 15
5.2.2.
Average Costs of Handsets............................................................................................ 16
5.2.3.
Existence of Mobile Phone Booths ............................................................................... 16
Political Economy of Internet and Mobile Phones: Mozambique
6.
OWNERSHIP OF INTERNET AND MOBILE PHONES ....................................................................... 17
6.1.
Ownership Structures - Internet Service Providers .............................................................. 17
6.2.
Ownership Structures - Mobile Phone Companies ............................................................... 17
6.3.
Market Structures - Mobile Phone Companies..................................................................... 17
7.
PRICING STRUCTURE AND COST ................................................................................................... 18
7.1.
Pricing – Internet................................................................................................................... 18
7.1.1.
Basic Pricing .................................................................................................................. 19
7.1.2.
Broadband Pricing ......................................................................................................... 19
7.2.
8.
Pricing – Mobile Phones........................................................................................................ 20
7.2.1.
Interconnection Rates ................................................................................................... 20
7.2.2.
Tariff Rates .................................................................................................................... 20
7.2.3.
Price for Mobile Phone Handsets ................................................................................. 21
REGULATION ................................................................................................................................. 22
8.1.
Regulation and Regime for Internet and Mobile Phones ..................................................... 22
8.2.
Competition Laws ................................................................................................................. 23
8.3.
Universal Access Laws ........................................................................................................... 23
9.
POLITICAL ECONOMY PERSPECTIVES ............................................................................................ 24
9.1.
Access .................................................................................................................................... 24
9.2.
Market Structures ................................................................................................................. 25
9.3.
Ownership ............................................................................................................................. 26
9.4.
Regulation ............................................................................................................................. 26
10.
CONCLUSIONS AND RECOMMENDATIONS ............................................................................... 28
10.1.
Conclusions ....................................................................................................................... 28
10.2.
Recommendations ............................................................................................................ 29
REFERENCES .......................................................................................................................................... 31
LIST OF ACRONYMS ............................................................................................................................... 32
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Political Economy of Internet and Mobile Phones: Mozambique
LIST OF FIGURES
Figure 1: Mozambique's Electricity Grid .............................................................................................. 11
LIST OF TABLES
Table 1: Mozambique key economic indicators ..................................................................................... 4
Table 2: Basic country data..................................................................................................................... 5
Table 3: Current newspapers on the market in Mozambique ................................................................. 7
Table 4: Basic ICT indicators ............................................................................................................... 10
Table 5: Interconnection of provincial capitals to national backbone via optic-fibre cable ................. 12
Table 6: Evolution of the number of people with access to the internet ............................................... 14
Table 7: Evolution of mobile phone penetration rates .......................................................................... 16
Table 8: Market structures - Mobile Phone Companies........................................................................ 18
Table 9: Internet fees for Teledata ........................................................................................................ 19
Table 10: TDM internet fees ................................................................................................................. 19
Table 11: Interconnection charges in use since 2010............................................................................ 20
Table 12: Cost of calls per minute ........................................................................................................ 21
Table 13: Smart phones – Price list at mCel retail outlets .................................................................... 21
Table 14: Smart phones – Price list at Vodacom retail outlets ............................................................. 21
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Political Economy of Internet and Mobile Phones: Mozambique
EXECUTIVE SUMMARY
Mozambique was one of the first countries in the region to reform its
telecommunications landscape, immediately after a long civil war ended in 1992.
Liberalisation of the telecommunications sector began in 2004, with the adoption of an
Act of Parliament. Although the fixed line telecom sector remains a state monopoly, the
mobile subsector is relatively competitive as it has three operators - Vodacom
Mozambique, mCel, the incumbent mobile subsidiary of the national telco, TDM and
Movitel. However, there are contradictions embedded in the practice of liberalisation.
Internet usage in the country is hampered by the inadequate fixed line infrastructure
and the high cost of international bandwidth, although the introduction of various kinds
of broadband services and the landing of two international submarine fibre-optic cables
in the country are expected to reduce bandwidth costs considerably. In addition, the
growth and spread of new media technologies is uneven in the country. For instance,
although the country has 21 Internet Service Providers, only three of them - Teledata,
TDM and Virconn - are present outside Maputo, with a mobile penetration rate of just
39%. Most of the people with access to mobile phones are concentrated in the two
urban metropolises, Maputo and Beira. Mobile phone companies give priority to urban
areas where they count on an easier market and users with greater purchasing power.
The telecommunication and mobile phone industry also faces weak regulation as the
regulator, the National Institute of Communications (INCM) which is directly
answerable to the Minister of Transport and Communications, undermines its role as an
independent body, and it is questionable whether it can independently adjudicate on
disputes in which the government is a party. For instance, the mobile phone operator
mCel is jointly owned by the state-owned TDM and the state investment arm, IGEPE,
while another mobile phone company, VIETEL, has part ownership of SPI, the holding
company of Mozambique’s ruling party FRELIMO.
There is a need to strengthen the institutional framework and role of the independent
regulator. In addition, improving access to electricity and infrastructure should be key
priories in order to enhance universal access.
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Political Economy of Internet and Mobile Phones: Mozambique
1.
COUNTRY FACTS
1.1. Political Structure
Mozambique gained its independence from Portugal on 25 June 1975, after 10 years of
an armed struggle led by the Front for the Liberation of Mozambique (FRELIMO). The
first constitution, adopted just a few days before independence, constituted
Mozambique as a one-party state, with FRELIMO as the only legitimate political party.
At its third congress held in February 1976, FRELIMO transformed itself from a massbased nationalist movement to become a Marxist-Leninist party committed to building
a socialist state based on a centrally-planned economy. However, unsettled internal
disputes within FRELIMO, coupled with the hostile attitude it represented towards the
then white minority regime in Rhodesia (now Zimbabwe) and the apartheid regime in
South Africa, Mozambique was soon to be immersed into a civil conflict that only ended
with the signing of the Rome Peace Accords between the government and the then rebel
movement of Mozambique National Resistance (RENAMO) on 4 October 1992.
In the meantime in 1990 FRELIMO had resolved to change the constitution to allow for
a multiparty system based on the principles of liberal democracy. The first multiparty
elections were held in October 1994, with FRELIMO winning subsequent elections ever
since.
The last presidential, parliamentary and provincial elections were held in 2009.
President Armando Guebuza was re-elected by 75.46% of the vote for his second and
last five-year term, while FRELIMO substantially increased its share of Members of
Parliament in the 250-seat Assembly of the Republic, where it scooped 191 seats,
against 51 for RENAMO, and 8 for the newly established Mozambique Democratic
Movement (MDM). At the provincial level, out of a total of 812 seats in dispute,
FRELIMO won 704, with the remainder being shared between RENAMO and MDM.
Apart from national elections, Mozambique has had municipal elections since 1998, first
covering 33 municipalities, which have since been enlarged to 44. The next national
elections are due in 2014, with the municipal elections scheduled for 2013.
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Political Economy of Internet and Mobile Phones: Mozambique
Under its constitution Mozambique upholds the principle of the separation of powers
between the executive, the legislature and the judiciary. Executive authority is vested in
the President, who is also Head of State and Commander-In-Chief of the defence and
security forces.
1.2. Economic Structure
Mozambique still remains by all measures one of the world’s poorest countries.
According to World Bank data, at the end of its 16-year civil war in 1992, Mozambique
had an external debt that was almost 200% of its GDP, with above 80% of its population
living below the poverty line and an inflation rate of almost 50%. Getting the country
out of this dire situation required an intensive combined effort on the part of
government in partnership with international donors. The result was that the economy
soon reached two-digit growth levels, with external debt being reduced to below 35% of
GDP, poverty was reduced by more than 15%, and inflation was brought down to single
digit levels.
However, notwithstanding all these achievements, Mozambique still faces important
economic and social challenges. The country ranked 172 out of the 182 countries
surveyed in the 2009 United Nations Human Development Index. Seventy per cent of its
21 million people live in rural areas and less than 10% work in the formal economy.
More than half of the population live below the poverty line, while vulnerability to
severe drought and flooding remains very high1. More than 40% of the state budget still
depends on external assistance2.
Mozambique held its last national population census in 2007. Data collected at the time
indicated a total population of 20.2 million, with women representing 52% of the total
population. The same exercise revealed that nearly 70% of the population of
Mozambique is rural.
According to the government five-year plan (2010-2014), improvement in the living
conditions of the population constitutes the main government priority. The plan
indicates that the majority of the population is young, with 45.7% under the age of 15. It
1
African Economic Outlook – Mozambique 2011, www.africaeconomicoutlook.org
2
Government of Mozambique, Report on the Millennium Development Goals, 2010
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Political Economy of Internet and Mobile Phones: Mozambique
notes that a young population requires specific government interventions in terms of
quality and relevant education, health care and employment opportunities.
Table 1: Mozambique key economic indicators
Indicator
Year 2009
Population, total (millions)
22.9
Population growth (annual %)
2.3
GDP (current US$ billions)
9.8
GDP per capita (current US$)
428
GDP growth (annual %)
6.3
Life expectancy at birth, total (years)
48.1
Mortality rate, infant (1 000 live births)
95.9
Literacy rate, youth female (% of females ages 15-24)
63.7
Prevalence of HIV, total (% of population ages 15-49)
11.5
Source: World Development Indicators (2009)
1.3. Socio and Economic Setting
Mozambique is situated in the southern eastern region of the African continent
bordered by Swaziland, South Africa, Zimbabwe, Zambia, Malawi and Tanzania. With a
territorial size of 799 390 km, population of 21 million and an abundance of unexploited
natural resources Mozambique is naturally blessed with the potential for riches. Below
is a table of basic country facts.
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Political Economy of Internet and Mobile Phones: Mozambique
Table 2: Basic country data
Indicator
Data
Area
799, 390 km2
Population (millions)
GDP
22,9 (69% rural and 31% urban)
US$9,7 billion (2009)
GDP per capita
Inflation (% change year-on-year)
Official language
US$456 (2009)
3,5%
Portuguese
Currency
Metical
Capital city
Maputo
Major religions
Christianity, Islam
Source: Adapted from Mozambique ICT Sector Performance Review 2009/2010 Research ICT Africa
2.
CONSTITUTION
2.1. Freedom of Expression
Freedom of expression and the media in Mozambique are provided under Article 48 of
the Constitution. Although Mozambique became independent in 1975, it was not until
1990 that political pluralism was recognised as a constitutional guarantee. Thus a new
constitution was adopted, which included all basic fundamental rights, including
freedom of expression and the media. The Constitution was further amended to its
present form in 2004, but such amendments did not include fundamental rights.
Paragraph 1 of Article 48 of the Constitution of Mozambique states that:
“All citizens have a right to freedom of expression, freedom of the media, as well
as the right to information”.
In paragraph 2, it determines that freedom of expression:
“which covers namely, the ability to divulge one’s own thought through all legal
means, and the exercising of the right to information shall not be limited through
censorship”.
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Political Economy of Internet and Mobile Phones: Mozambique
Under the same provisions of the Constitution, media professionals are guaranteed the
right to access sources of information, to editorial independence and professional
confidentiality. These provisions are extensive to the public sector media as well. Article
49 gives the right of access to public radio and television by political parties with
parliamentary representation, labour unions, professional, economic and social
organisations for use as a right of reply to government policies and major policy
statements.
During election campaigns, contesting political parties and candidates are also given
slots on public radio and television during which to explain their policies and
programmes. However, the right of access to public radio and television by political
parties, labour unions, economic and social organisations for comment on government
policies has never been exercised, as the Constitution remits to specific regulations
which so far have not been enacted. The constitutional guarantees on freedom of
expression and the media are further elaborated in Act number 18/91 (Media Law),
adopted by Parliament in August 1991.
2.2. Policy and Institutions
From an administrative point of view, the media in Mozambique falls under the
Department of Information (GABINFO), which in itself is a subordinate institution in the
Prime Minister’s Office. The Supreme Council of the Media (CSCS) is the constitutional
body responsible for ensuring that the right to information, freedom of the media,
editorial independence, as well as the rights to airtime and of reply are fully exercised.
The CSCS is constituted of 11 members, two of whom, including the Chair, are appointed
by the President of the Republic. Five are elected by Parliament in accordance with the
number of seats each political party holds in the House, three are elected by media
professional organisations, and one represents the media companies. According to the
Constitution, the CSCS is also responsible for issuing an opinion prior to government
licensing of radio and television stations, and is supposed to have a say in the
appointment and dismissal of the Chief Executive Officers of the publicly owned media.
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Political Economy of Internet and Mobile Phones: Mozambique
3.
MEDIA AND COMMUNICATIONS LANDSCAPE
The media landscape in Mozambique is quite diversified and vibrant, since the media
sector was liberalised, following the introduction of the new multiparty Constitution in
1990, and the adoption of the first Media Law in 1991.
3.1. Print Media
The print media sector consists of three daily and nine weekly newspapers, all
published in Portuguese, the official language.
Table 3: Current newspapers on the market in Mozambique
Name of newspaper
Published
Ownership
Diário de Moçambique
Daily
Private
Notícias
Daily
Sociedade do Notícias
O País
Daily
Private
Canal de Moçambique
Weekly
Private
Desafio (Sports)
Weekly
Sociedade do Notícias
Domingo
Weekly
Sociedade do Notícias
Escorpião
Weekly
Private
Expresso
Weekly
Private
Magazine Independente
Weekly
Private
Público
Weekly
Private
Savana
Weekly
Private
Verdade (free distribution)
Weekly
Private
Zambeze
Weekly
Private
Two of the daily newspapers, Notícias and O País, are published in Maputo, the national
capital. The other, Diário de Moçambique, is published in Mozambique’s second-largest
city, Beira. The weekly newspapers are all published in Maputo.
Major shareholders in Sociedade do Notícias are the Bank of Mozambique, the state
insurance company EMOSE, and PETROMOC, the state oil distributor. A private
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Political Economy of Internet and Mobile Phones: Mozambique
company known as João Ferreira dos Santos (JFS) holds a minority stake in the
company. Because it is overly owned by state institutions, Sociedade do Notícias is often
regarded as a public company, and therefore all its media products are seen as
qualifying as publicly owned, even though the company is registered in the Register of
Companies as a private company. In fact, the editorial content of the two most
prominent newspapers in the stable, namely Notícias and Domingo, is ostensibly progovernment.
There is also a plethora of small, daily online publications ranging from 4 to 6 A4 pages.
3.2. Electronic/Broadcasting Media
Electronic/broadcasting media in Mozambique is divided into three sectors, namely
public, private/commercial and community. The community broadcasting (mainly
radio) sector is further subdivided into two categories: those community radio stations
that are run by the government information services, which is responsible for the
provision of information for the rural areas, on the one hand, and those radio stations
which are run by the communities themselves on the other hand.
Public broadcasting is represented by Radio Mozambique (RM) and Mozambique
Television (TVM).
3.3. Policy and Regulation of the Media
According to the Media Law all media organisations are required to register with the
Department of Information, which falls under the Office of the Prime Minister. However,
such registration is merely an administrative procedure, and the law states that it can
only be rejected if the applicant fails to meet certain specifications in the declaration
that accompanies the application for registration. The national regulation authority is
INCM, which was established in 1992 with the mandate to regulate both the
telecommunications and postal sectors. While the INCM is financially and
administratively autonomous, government can influence decision-making procedures
since the INCM reports to the Ministry of Transport and Communications. The CEO of
the INCM is nominated by the Prime Minister, while the Director General and Executive
Directors are appointed by the Minister of Transport and Communications. Under the
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Political Economy of Internet and Mobile Phones: Mozambique
Media Law, foreign ownership of the media in Mozambique is limited to 20% of
shareholding in any media company.
A new broadcasting law is in the process of being drafted, even though not much
progress appears to have been made. The absence of a specific broadcasting legal
framework means that the broadcasting sector continues to be governed by the general
media law.
There is no independent regulator for the broadcasting industry. Licensing of
broadcasting organisations is handled at three levels. First, there is the Department of
Information (GABINFO), which ensures that applicants for licences are proper, legally
established entities in terms of the country’s company law and that they meet all the
requirements set in the law. The second level is the National Communications Institute
(INCM), which ensures that applicants meet the national technical requirements and
allocates frequencies. The third level is Cabinet, which approves the application and
issues the licence.
4.
INFRASTRUCTURE
4.1. Telecom infrastructure
Mozambique’s telecom industry is growing with penetration rates in all sectors
registering noticeable growth. The country has one fixed telecom operator - TDM - and
three mobile phone operators - mCel, Vodacom Mozambique and Movitel. According to
Mozambique’s National Communications Institute (INCM), the country’s basic
telecommunications infrastructure network is managed by the state-owned
telecommunications company, Mozambique Telecommunications (TDM). However, the
ownership infrastructure for complementary or value added services is open to both
the public and private sectors. The telecommunications infrastructure network consists
of a backbone covering about 97.7% of the national territory. This network is based on a
combination of different technologies such as VSAT, optic-fibre cable and radio links.
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Political Economy of Internet and Mobile Phones: Mozambique
Table 4: Basic ICT indicators
Indicator
Data
Fixed telecom operators
1
Mobile telecom operators
3
Internet Service Providers (ISPs)
20
Teledensity (fixed)
0,40%
Mobile penetration
39%
Internet users
975 395 (31 December, 2011)
Source: Adapted from Mozambique ICT Sector Performance Review 2009/2010 Research ICT Africa
4.2. Electricity
Much of Mozambique’s electrical infrastructure was destroyed during the civil war.
With the assistance of foreign aid, the country’s electrical infrastructure is slowly being
rebuilt. The Mozambican electrical authority, Electricidade de Moçambique (EDM) is a
state-owned company established to operate public service in generation, transmission
and distribution of electricity. Although Mozambique is home to Africa’s second-largest
hydroelectric dam, Cahora Bassa, the country still faces the challenge of having to meet
the growing electricity needs for most of its population. Cahora Bassa boasts an output
capacity of 2 GW, nearly four times the usage of Mozambique, the rest of which is
exported to South Africa. Thus, Mozambique’s electrical challenges are glaringly
different from other African countries where the problem lies not in the amount of
power being generated but rather in issues of transmission and distribution. Out of the
country’s 128 districts only 100 are connected to Cahora Bassa’s national electricity
grid (Electricidade de Moçambique, 2011). Out of the country’s 128 district
headquarters, 102 have already been electrified. Currently only 30% of the Mozambican
population have access to electricity. This percentage is largely concentrated in major
cities with only 1% of the rural population enjoying access to electricity3. The EDM has
plans to provide eight thousand new connections in the northern Mozambican port of
Nacala in 2012, in addition to reducing losses, improving reliability and the quality of
electricity supplied.
3
Mozambique Country Situation, retrieved at
https://energypedia.info/index.php/Mozambique_Country_Situation, accessed on 21 September 2011
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Political Economy of Internet and Mobile Phones: Mozambique
Figure 1: Mozambique's Electricity Grid
Source: EDM, 2011
4.3. Fibre/Wireless Networks
Optic fibre is the main form of broadband internet transmission, covering all provincial
capitals and some districts. However, reality shows that about 70% of the population
live in rural areas, without access to these services, considering that there is no
coverage in most districts. Where there is no optic fibre, internet services can be
accessed via satellite, a technology that is too expensive for the majority of
Mozambicans.
Interconnection of all provincial capitals to the backbone of the national transmission
network in optic-fibre cable was concluded in 2009:
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Political Economy of Internet and Mobile Phones: Mozambique
Table 5: Interconnection of provincial capitals to national backbone via optic-fibre cable
Link
Completion date
Maputo-Beira
2002
Maputo-Ressano Garcia
2006
Maputo-Xai Xai-Chokwe
2006
Chokwe-Massingir
2006
Beira-Dondo-Caia-Quelimane
2007
Quelimane-Mocuba-Nampula-Cuamba
2007
Chimoio-Tete
2008
Nampula-Pemba
2009
Cuamba-Lichinga
2009
4.4. Broadband
Currently, all provincial capitals and 28 towns are equipped with broadband services
based on ADSL technology, offered by TDM, with speeds that vary between 128 Kbps
and 2 Mbps. Other broadband services are offered by other telecommunications
operators. Broadband services include ADSL, cable modems, wireless WiMAX
broadband and mobile data services. According to Mozambique Telecommunications
(TDM), the country’s main provider of optic fibre, the main consumers of wireless
broadband internet services are government and private institutions, at a minimum
cost of 1 300.00 Meticais (about US$43.00).
Mozambique also has hyperlinks with the following countries:

South Africa (optic fibre and radio)

Swaziland (optic fibre and radio)

Zimbabwe (optic fibre)

Malawi (optic fibre).
There is also a sea optic-fibre cable that is operated by a private company known as
SEACOM, which links up with Djibouti, France, India, Kenya, Madagascar, South Africa
and Tanzania. Construction began in 2010 on laying an Eastern African Submarine
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Political Economy of Internet and Mobile Phones: Mozambique
Cable System (EASSy). The objective of this cable system is to reinforce alternative
regional and international transmission systems (Research ICT Africa 2010).
4.5. 3G and 4G Mobile Technology
Third Generation (3G) mobile phone service was introduced in late 2008 in Maputo 4.
The first mobile phone operator to offer 3G services was the state-owned Mcel, using
the CDMA 1xEV-DO/3G UMTS/HSDPA technology, which is capable of reaching a speed
ranging from 2mb to 7mb per second. However, coverage was limited to a small number
of major cities, which already had partial coverage. Vodacom Mozambique launched the
3G UMTS/HSDPA technology in 2008 slated at the 850-920 MHz frequency. Since its
launch earlier this year Movitel has been offering 3G services across the expanse of
networks infrastructure.
5.
STATUS OF INTERNET AND MOBILE PHONES
5.1. Status - Internet Penetration
Internet in Mozambique was introduced for the first time in 1993 by the Eduardo
Mondlane University’s Informatics Centre (CIUEM), offering only e-mail services.
According to the last census in 2007 there were an estimated 162 000 internet users in
Mozambique. With a penetration rate of 6,7%, Mozambique’s internet sector remains
sluggish in comparison to fellow African countries. High costs of bandwidth and a lack
of PC ownership are major obstacles to greater internet accessibility.
5.1.1.
Access
According to the latest population and household census, held in 2007, only 2.1% of the
population have access to the internet. However, according to the Internet World Stats
webpage, Mozambique has registered a significant increase in internet use, rising from
22 500 users in 2003 to 613 600 in 2011. According to the 2007 population and
household census, 1.1% of the population own a computer, while 3.9% have access to a
computer.
4
Digital Inclusion in Mozambique
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Political Economy of Internet and Mobile Phones: Mozambique
The table below shows the growth trend of the percentage of population with access to
the internet from 2003 to 2011.
Table 6: Evolution of the number of people with access to the internet
Year
Number of internet users
Percentage change (%)
2003
22 500
-
2004
50 000
122.22
2005
50 000
No change
2006
138 000
176
2007
138 000
No change
2008
200 000
44.93
2009
200 000
No change
2010
350 000
75
2011
613 600
75.31
Source: The CIA World Factbook
5.1.2.
Number of Internet Service Providers
According to the National Communications Institute (INCM) there are currently about
21 Internet Service Providers (ISPs). The following is a list of the most significant ISPs in
the country:

Teledata

CIUEM

Tropicalweb

Virconn

Emil

TDM

CFMnet

TVCabo

Intra

Dataserv

SATCOM

GSTelecom
14
Political Economy of Internet and Mobile Phones: Mozambique
ISPs are not subject to licensing. All they require is an official registration, which is
basically an administrative procedure. The registration authority is the INCM. With the
exception of Teledata, TDM and Virconn, all other ISPs are not present outside Maputo.
5.2. Status - Mobile Phones Penetration
5.2.1.
Number of Mobile Phone Companies
There are three mobile phone operators in Mozambique. They are Moçambique Celular
(mCel), which is wholly owned by the state, Vodacom Moçambique, a private joint
venture between Mozambique’s EMOTEL and Vodacom South Africa and Movitel
Mozambique’s most recently launched third mobile network since formally acquiring a
licence in January 2011. mCel, the oldest, was established in 1997, as a result of a joint
venture between Mozambique Telecom (TDM), Mozambique’s only fixed line operator
and Detecon GmbH (Deutsche Telepost Consulting GmbH), a subsidiary of Germany’s
Deutsche Telekom (Research ICT Africa, 2010)
However, in 2004 TDM acquired the entire Detecon stake, to become the sole
shareholder in mCel. Vodacom was awarded the second mobile phone licence in 2002,
and launched its operations in December 2003. In November 2010 INCM awarded a
third licence to Movitel, a joint venture between Mozambique’s SPI Holdings and
Vietnam’s Vietel. The strategic partner Vietel is a Vietnamese military-run GSM network
operator company with operations in Vietnam, Cambodia, Laos and Haiti, with about 60
million clients. Movitel commenced operations in January this year claiming to already
have a larger distribution network than both mCel and Mozambique Vodacom. In its
short existence Movitel already covers 105 of the country’s 128 districts estimating that
43% of Mozambique’s population can be reached by its signal.
With a mobile penetration rate of just 39% Mozambique’s mobile market has room for
growth. The licensing of third operator Movitel was undoubtedly an attempt by the
Mozambican government to enhance this sector, which has shown a steady increase in
subscribers, contrary to fixed telephony, which has proved less affordable and
accessible to the majority of its population.
15
Political Economy of Internet and Mobile Phones: Mozambique
The table below shows the rapid evolution in mobile phone penetration rates between
2003 and 2009.
Table 7: Evolution of mobile phone penetration rates
Year
Penetration rate (%)
1997
0.013
1998
0.037
1999
0.067
2000
0.28
2001
0.49
2002
0.94
2003
2.60
2004
3.39
2005
8.35
2006
12.6
2007
16.8
2008
21.6
2009
29.1
Source: Mozambique National Communications Institute (INCM)
5.2.2.
Average Costs of Handsets
The average cost of a mobile phone unit with access to internet in Mozambique is 2
500.00 Meticais (about US$83.00). Smartphones are also available from the existing two
mobile phone operators and other outlets at a price range that varies from 10 000.00 to
50 000.00 Meticais (US$333.00-US$1 666.00).
5.2.3.
Existence of Mobile Phone Booths
People who do not own mobile phone sets can have access to mobile phone services
through public booths offered by ONE CELL and mCel (Cabine giro). Public cellular
phones function on the basis of a prepaid card. INCM data shows that all provincial
capitals, municipalities and development corridors are covered by mobile phone
services: of the 128 districts 115 are covered, which represents almost 90% coverage.
16
Political Economy of Internet and Mobile Phones: Mozambique
6.
OWNERSHIP OF INTERNET AND MOBILE PHONES
6.1. Ownership Structures - Internet Service Providers
Most Internet Service Providers (ISPs) in Mozambique are a mix of domestic and foreign
capital. For example, Teledata is a joint venture (at par) between Mozambique’s public
telephone utility, TDM, and the international arm of its Portuguese equivalent, PT.
Another ISP, SATCOM, is wholly owned by the Brithol Michoma Group, a part of the
Brithol Michoma International Limited based in the UK. The company also specialises in
the provision of security printing services for the banking industry.
6.2. Ownership Structures - Mobile Phone Companies
As stated above, there are three mobile phone operators in Mozambique. These are
mCel, Vodacom and Movitel. mCel trades as a private company, jointly owned by TDM
(74%) and the state investment arm, IGEPE (24%). Vodacom is owned by Vodacom
International Limited (85%), Empresa Moçambicana de Telecomunicações (EMOTEL)
with 5%, Itelec Holdings Limitada (5%) and Whatana Investimentos Limitada (5%).The
third mobile operator, Movitel, is a joint venture between VIETEL of Vietnam, which
owns 70% of the company, SPI (29%), and INVESPARK (1%). SPI is the holding
company of Mozambique’s ruling party, FRELIMO, while INVESPARK is a group of
individual local investors5.
6.3. Market Structures - Mobile Phone Companies
Mozambique’s mobile market shows clear signs of growth. Movitel, the third network to
commence operations in the country, is a welcome addition to the market that was
previously dominated by mCel and Mozambique Vodacom. However, despite only two
operators prior to January this year, a duopoly between the two operators did not exist.
A degree of mistrust between mCel and Mozambique provided much competition
between the two and, as a result, large marketing campaigns are commonplace. As
mobile phone subscribers grow, concern over quality of services becomes greater. mCel
has lost a considerable amount of its subscriber base to Vodacom as a result of poor
5
Mozambique: Movitel to Invest 120 million U.S Dollars, retrieved at Source:
http://www.poptel.org.uk/mozambique-news/newsletter/aim417.html#story5, accessed 21 September 2011
17
Political Economy of Internet and Mobile Phones: Mozambique
network performance. Network infrastructure proves to be a costly and determining
factor in network services. Due to an absence of infrastructure-sharing regulation,
operators establish separate infrastructures that often result in high end-user costs.
Table 8: Market structures - Mobile Phone Companies
Product
mCel
Vodacom
Movitel
Post-paid Contracts
Yes
Yes
Yes
Prepaid Contracts
Yes
Yes
Yes
SMS
Yes
Yes
Yes
Internet 3G/Broadband
Yes
Yes
Yes
MMS
Yes
Yes
Yes
Tariff Plans
Yes
Yes
Yes
7.
PRICING STRUCTURE AND COST
7.1. Pricing – Internet
Pricing of internet services in Mozambique is generally too high for the majority of
Mozambicans. Rates can be paid monthly or on a prepaid basis, varying from US$17 to
US$240.
18
Political Economy of Internet and Mobile Phones: Mozambique
7.1.1.
Basic Pricing
The tables below show the internet user fees for some of the ISPs.
Table 9: Internet fees for Teledata
Packages
Monthly
fee with
antenna
Meticais/
US$
Monthly
fee without
antenna
Meticais/
US$
850.00/
500.00/
1 340.00/
29.65
17.44
46.74
1 370.00/
1 020.00/
1 340.00/
47.79
35.58
46.74
1 920.00/
1 570.00/
1 340.00/
66.98
54.77
46.74
Standard 1024 2 550.00/
2 200.00/
88.95
76.75
Standard 2048 3 920.00/
3 570.00/
136.75
124.54
Standard 128
Standard 256
Standard 512
Installation
Meticais/
US$
Band
width
(kbps)
Download Upload
limit
limit
d (MB)
d (MB)
128/64
2 048
1 536
256/128
5 120
3 072
512/256
8 192
5 120
1 340.00/ 1024/512
14 336 10 240
46.74
1 340.00/ 2048/102
46.74
20 480 16 384
4
Source: : Teledata (www.kwiknet.co.mz)
7.1.2.
Broadband Pricing
Table 10: TDM internet fees
Description
Down/up
loads
Monthly fees
Meticais/US$
Additional
100MB
Meticais/US$
Free emails
Packages for TDM bandwidth service
Up to 128
Up to
Up to
Up to
unlimited
128
128 9GB
256
6GB
12GB
Unlimited
6GB
9GB
12GB
Up to
512
15GB
15GB
Up to
Up to
Up to
1024 (*) 2048 (*) 4096 (*)
20GB
26GB
31GB
20GB
26GB
31GB
650.00/ 750.00/ 1100.00/ 1700.00/ 2100.00/ 2850.00/ 3650.00/ 4300.00/
22.67
26.16
38.37
59.30
73.26
99.42
127.33
150.00
N/A
65.00/
2.27
65.00/
2.27
65.00/
2.27
65.00/
2.27
10
10
10
10
10
65.00/
2.27
65.00/
2.27
65.00/
2.27
10
10
10
Source: TDM – www.tdm.mz
19
Political Economy of Internet and Mobile Phones: Mozambique
7.2. Pricing – Mobile Phones
7.2.1.
Interconnection Rates
The first interconnection fees were established by government decree number
34/2001. According to Research ICT Africa, interconnection tariffs were among some of
the most controversial issues since the second mobile phone operator came into the
market in 2003 ( Research ICT Africa 2010).
Before that there were no problems because mCel was born out of TDM as a subsidiary.
After heated debates, the three operators (TDM, mCel and Vodacom) reached an
agreement in 2003 on the interconnection tariffs. However, the agreement was
subsequently the subject of a renewed dispute which required the intervention of INCM.
In order to solve the problem, the regulator commissioned an independent consultant in
2006, who would submit new proposals concerning the new interconnection tariffs.
That resulted in a new agreement which was signed between TDM, mCel, Vodacom and
INCM in November 2007, for tariffs to be applied in 2008 and 2009 (Research ICT
Africa, 2010).
Current interconnection charges between mCel and Vodacom are shown in the table
below.
Table 11: Interconnection charges in use since 2010
Interconnection service
Termination at Mcel network
Termination at Vodacom network
Termination at Movitel network
Termination at TDM network
Charge per minute Meticais/ US$
2.59/ 0.09
2.59/ 0.09
2.59/ 0.09
0.95/ 0.03
Source: Government Gazette, III Serie, number 15
7.2.2.
Tariff Rates
In March 2012 Research ICT Africa released a report detailing an African mobile price
index6. Of the 46 African countries researched, Mozambique ranked number 25 in terms
of prepaid mobile affordability. In comparison to Namibia, which ranked highest,
6
Africa Prepaid Mobile price Index: South Africa 2012 Research ICT Africa
20
Political Economy of Internet and Mobile Phones: Mozambique
Mozambique’s prepaid tariffs are considerably high. Namibia has a history of exorbitant
mobile tariffs but following strong opposition to interconnection charges, the Namibian
Communications Commission standardised charges, which dramatically slashed mobile
tariffs. At present per minute tariffs on MTC, Namibia’s largest mobile network, are US$
0.07. The rates are close to half that of Mozambique’s equivalent as evident in the table.
Table 12: Cost of calls per minute
Tariff
Mcel
Vodacom
Movitel
7.2.3.
Charge per minute Meticais/US$
4.5/ 0.16
3.6/ 0.13
4/ 0.14
Price for Mobile Phone Handsets
Table 13: Smart phones – Price list at mCel retail outlets
Model
BlackBerry 8800
BlackBerry Curve 8320
BlackBerry Curve 8900
BlackBerry 9000 Bold
BlackBerry Pearl 8120
BlackBerry Pearl 8220 Pearl Flip
BlackBerry Storm 9500
Price (Meticais)
25 599.00
21 599.00
21 299.00
27 099.00
16 099.00
16 499.00
27 799.00
Price (US$)
962.37
811.92
800.71
1 018.76
605.23
620.26
1 045.08
Source: www.mcel.co.mz
Exchange rate: 1US$ = 30.00 Meticais
Table 14: Smart phones – Price list at Vodacom retail outlets
Model
BlackBerry Curve 8520
BlackBerry Torch T9800
Nokia E72
Nokia E5
Nokia C6
Nokia 6760
Samsung Galaxy Tab
Price (Meticais)
9 878.00
31 731.00
14 196.00
10 223.00
12 460.00
12 108.00
25 543.00
Price (US$)
371.35
1 192.89
533.68
384.32
468.42
455.18
960.26
Source: www.vm.co.mz
Exchange rate: 1US$ = 30.00 Meticiais
In July 2011, Vodacom launched the cheapest mobile phone on the Mozambican market,
the ZTE S512, a Chinese model. The mobile phone is selling for 499 meticais (about 17
21
Political Economy of Internet and Mobile Phones: Mozambique
US dollars). In addition to basic phone functions, the handset also has an FM radio, an
alarm clock, games and a torch7.
8.
REGULATION
8.1. Regulation and Regime for Internet and Mobile Phones
Liberalisation of the telecommunications sector began in 2004, with the adoption of an
Act of Parliament. Under the Act, the regulatory body for the postal and
telecommunications
industry
in
Mozambique
is
the
National
Institute
of
Communications (INCM), which was established by a government statutory instrument
in 1992, falling under the Ministry of Transport and Communications. The Minister of
Transport and Communications appoints the body’s Chief Executive Officer. INCM’s
main functions include the drafting of legislation and regulations for the postal and
telecommunications sectors, regulating network
interconnectivity, establishing
telecommunications tariffs and ensuring quality in the provision of services to the
public. It is responsible for the licensing of radio stations, as well as monitoring the
provision of internet services. It is also the body responsible for coordinating
Mozambique’s digitalisation programme.
INCM is often referred to as “regulator” for the postal and telecommunications industry.
However, being a government department directly answerable to the Minister of
Transport and Communications undermines its role as an independent body, and it is
questionable whether it can independently adjudicate on disputes in which the
government is a party. During the food riots of 1 September 2010, the INCM arbitrarily
directed the two mobile phone operators to suspend all Short Message Services (SMS),
under the argument that the service was being used to mobilise rioters.
By law, INCM is compelled to publish in the official Gazette, an annual report detailing among other issues - the licenses issued, modified, renewed or cancelled; entities
exempted from paying fees under the terms stated in the law; and the tariffs being
applied.
7
AIM News. Retrieved
http://www.clubofmozambique.com/solutions1/sectionnews.php?secao=business&id=22086&tipo=onehttp:/
/www.clubofmozambique.com/solutions1/sectionnews.php?secao=business&id=22086&tipo=one, accessed
21 September 2011
22
Political Economy of Internet and Mobile Phones: Mozambique
8.2. Competition Laws
Mozambique does not have a completion law, but processes of implementing it are
under way. A competition policy has been drafted and is the process of being reviewed.
8.3. Universal Access Laws
In 2004, Mozambique’s Parliament adopted the Universal Access Service Act, aimed at
establishing the policy framework for the ICT sector in Mozambique. Universal Access is
defined in the law as a set of specific obligations relating to the penetration of basic
public telecommunications services, including advanced telecommunications services at
affordable prices, with the overall objective of meeting the communication needs of
rural communities and those of the country’s economic and social activities.
Following the adoption of the Act in 2006 through a decree, the government of
Mozambique established the Fundo do Serviço de Acesso Universal (Universal Service
and Access Fund) (FSAU), with the mandate of financing telecommunications
programmes, projects and activities in the less privileged areas of the country. The
FSAU is managed by INCM, and is funded through contributions made by all
telecommunications service providers, to the tune of up to 1% of their annual revenue.
Internet café service providers are exempted from this obligation.
Officially, the government of Mozambique views citizens’ unrestricted access to
communication and information services as a fundamental right, and believes that since
market forces alone will not be able to meet all the country’s requirements in terms of
social development, it has to put in place a programme for universal access to
telecommunications services. Fundamentally, the programme aims at ensuring that
gradually all citizens have access to a wide range of communication and information
services.
The medium-to-long term objective is the establishment of a universal service that
enables each family to be directly linked to the public telecommunications network and
access to related services. In this regard, the government policy defines access to
telephone and internet services as part of Mozambicans’ basic needs in the
23
Political Economy of Internet and Mobile Phones: Mozambique
telecommunications sector. In the provision of basic telephone services, the government
strategy is based on two pillars:
a)
direct public access in all rural villages and population centres with at least 500
inhabitants
b)
achievable public access within a maximum distance of five kilometres for all
population centres.
In addition, the strategy includes the establishment of an emergency national telephony
service to facilitate and improve response in case of national disasters and emergencies.
On access to the internet, the strategy is based on the establishment of a network of
internet centres in all of the country’s 128 districts. In addition, in 2006 the government
of Mozambique adopted the country’s 10-year Science, Technology and Information
Strategy (MOSTIS), which aims at turning Mozambique into not only a consumer, but
also a producer of information and communications technologies.
The MOSTIS identifies three major challenges in order for Mozambique to achieve a
rapid spread in the use of ITCs, which are:

an increase in the number of people with solid skills in ICTs, and the availability
of these throughout the country

expansion and modernisation of the telecommunications infrastructure

acceleration in the process of defining telecommunications policy and reforms
in this sector so as to facilitate free competition and attract investment

expansion and modernisation of telecommunications infrastructure

acceleration in the process of defining telecommunications policy and reforms
in this sector so as to facilitate free competition and attract investment.
9.
POLITICAL ECONOMY PERSPECTIVES
9.1. Access
Mozambique is a poor country with the majority of its population living in rural areas,
where access to basic services is scant. Poverty is caused by isolation, inadequate
infrastructure and the consequent lack of access to goods and services. The road
24
Political Economy of Internet and Mobile Phones: Mozambique
networks in Mozambique are in very poor condition, especially in rural areas (IFAD
2010). Access to electricity and infrastructure is key in all efforts at enhancing the use of
ICTs by a wider number of people in the country. Although the government has adopted
a Universal Access policy, this has not translated into physical and material access to
ICTs by the majority of the people in Mozambique. Access to ICTs should be a
combination of the three main components: physical, material and skills access.
Although Mozambique has a relatively high percentage of mobile penetration at 39%
most of the people with access are concentrated in the two urban metropolises, Maputo
and Beira. Mobile phone companies give priority to urban areas where they count on an
easier market and users with greater purchasing power.
Access to ICTs, or lack thereof, is largely impacted by a combination of ownership
trends in the ICT sector, market and state interactions and regulation as discussed
below.
9.2. Market Structures
Movitel’s commencement of operations in 2012 provides a much needed addition to the
mobile market that was previously dominated by mCel and Mozambique Vodacom. The
added competition has been quick to induce competitive pricing strategies in the
market. Since Movitel’s announcement of a groundbreaking 4 Meticais per minute
prepaid calling rate, price slashing by both other operators have been rampant. In a
surprise turn Vodacom declared a second major price slash in six months. In July 2011
Vodacom instituted a 40% price reduction on prepaid calling rates, dropping tariffs
from 8.4 Meticais to 5 Meticais per minute. Vodacom has also removed the difference
between charging by the minute and charging by the second. However, since Movitel’s
commencement on very low per minute costs, Vodacom has once more dropped tariffs
which are now the cheapest in the region at 3.5 Meticais per minute. Since then mCel
has similarly instituted price reductions from 7.04 Meticais per minute to 4.5 Meticais
per minute. The ensuing competition in the mobile market bodes well for the industry
and the prospect of universal access. The broadband market however remains less
competitive as provision rests with state-owned TDM. Although Mozambique has 21
Internet Service Providers, only three of them - Teledata, TDM and Virconn - are present
outside Maputo.
25
Political Economy of Internet and Mobile Phones: Mozambique
9.3. Ownership
The mobile phone industry in Mozambique is dominated by two forces – the state and
the market. While this is not a problem in itself, the shareholding entities in two mobile
phone companies are connected to government actors. The third mobile phone
company, Movitel, has 29% ownership by a company owned by the current ruling party,
FRELIMO. This ownership structure has implications on regulation. Effective regulators
are normally associated with being independent to some degree. In Mozambique, there
is a rather close relationship between the regulator, INCM, the state and some of the
players in the mobile phone industry. Although absolute independence of regulatory
bodies is not possible, effective regulation requires some independence from political
influences.
9.4. Regulation
It is clear that Mozambique needs a strong regulatory framework if it is to achieve its
stated objectives of making the ICT sector available to all its citizens and turning it into
a tool for poverty eradication, wealth creation and overall improvement in the people’s
standards of living.
From an institutional point of view, INCM plays the role of the regulator. However, as
has been demonstrated, the organisation is not adequately equipped to play that role
and play a significant role in the development of the ICT sector in the country. A robust
regulatory institution is critical to promoting competition, improving the quality of
services to users and reducing the costs associated with accessing ICTs.
As is currently instituted, INCM is not adequately equipped to play its role as an
independent regulator, as the organisation remains heavily dependent on the Minister
of Transport and Communications, who is a politician. The Minister appoints the Head
and the Board of INCM, both of whom are not protected from arbitrary interference
through a system that gives them security of tenure. Both the Head and Board of INCM
are directly accountable to the Minister. It therefore follows that INCM cannot
adjudicate licences in a free and independent manner, without pandering to the
interests of the political party that is the government of the day.
26
Political Economy of Internet and Mobile Phones: Mozambique
As the regulator, INCM should play a more active role in enforcing better quality of
customer service and fair pricing. The current size of the Mozambican economy and
market does not offer sufficient guarantees that out of their initiative industry operators
will take into account the environment in their pricing of services.
27
Political Economy of Internet and Mobile Phones: Mozambique
10.
CONCLUSIONS AND RECOMMENDATIONS
10.1. Conclusions
Mozambique intends to achieve the goal of ICT Universal Access partly with funds from
the Universal Service and Access Fund, which it collects from operators in the sector.
However, so far there have been no clear guidelines on how potential beneficiaries
should have access to this fund, nor has there been enough publicity about the existence
of such fund.
In addition, there are issues that need to be dealt with in relation to the management of
the fund. Currently, INCM is responsible for collecting the levies required for the fund,
but it is actually the Ministry of Transport and Communications which administers the
fund, even though legally, it is INCM that is responsible for indentifying priority projects
eligible for funding.
In the broadcasting sector, there is a need to streamline the procedures for awarding
licenses. Currently, a multitude of institutions are involved in the process, which largely
lacks transparency. Institutions that are involved in issuing broadcasting licenses are
the Cabinet, the INCM and the Department of Information (GABINFO), which falls under
the Office of the Prime Minister.
Under this setup, GABINFO deals with the broader issues of policy, whereby it verifies
the applicant's compliance with the provisions of the Media Law. INCM deals with the
technical aspects of frequency allocation before the licence is finally issued by Cabinet.
Mozambique is in the process of drafting the country’s first broadcasting law, and it is
expected that such process will ultimately lead to the establishment of an independent
broadcasting authority that will ensure transparency.
There has been a significant growth in the ICT sector in Mozambique over the past few
years, with great potential for further improvement. Although at 197 out of 210 in the
country ranking per capital level (World Bank, 2010), Mozambique remains one of the
world’s poorest countries. The establishment of a sound policy framework is an
important step to enable the country to harness all potential to join the super highway.
But critically, in order to achieve its objectives in the ICT sector, government will have
28
Political Economy of Internet and Mobile Phones: Mozambique
to continue with efforts to reduce the poverty level in the country, which now stands at
54.7%, and increase its budget spending on education.
It is also important that government makes a special effort to meet its commitment to
achieving a science and technology expenditure of 0.8% of GDP. This commitment was
made in 2010.
10.2. Recommendations
Advocacy strategies for the development of ICTs in Mozambique will have to be
developed through partnerships between government, the private sector, institutions of
education, local government and civil society. This has to include an increase in funding
for research and development by encouraging multiple layers of sources of funding.
Review and Update of the ICT Policy: Mozambique was one of the first countries in
Africa to adopt a comprehensive ICT policy. There is a need to come up with an
updated citizen-driven ICT policy that addresses new challenges and current
technological realities.
Tax Incentives: In order to encourage private-sector investment in research and
development, government should provide tax incentives to companies and
other entities that invest in this sector.
Creation of Public-Private Partnerships: Investment can also be achieved by
encouraging public-private partnerships and the involvement of local
universities. For example, Eduardo Mondlane University, the largest publicly
owned university in Mozambique, has already established an Information
Technology Centre (CIUEM), which can be used to spearhead such a process.
Creation of Public Access Centres: It goes without saying that access to information
and knowledge is an important component of a truly inclusive information
society, and that public access centres, e.g. libraries and Community MultiMedia Centres (CMCs), can play important roles in this process. Although
Mozambique has about 20 CMCs, these are not enough for such a vast country.
Advocacy for libraries and more CMCs at local level could be one strategy to
ensure that more people, especially those in disadvantaged communities, have
29
Political Economy of Internet and Mobile Phones: Mozambique
access to ICTs at affordable costs. These could be used by students and other
people who need information to perform their daily activities.
Lobby for Local Content Strategies: The mandate of the Universal Access should be
expanded to support local content.
Lobby for Strengthening the Regulator: There is a need to strengthen the
institutional framework and role of INCM as an independent regulator. The
regulator needs to have the power to enforce quality in the provision of
services by mobile phone operators and ensure that they charge their
customers fair prices. This is more so given the fact that there are no
organisations in Mozambique that actively promote the interests of consumers.
This applies not only to the communications sector, but to all other services as
well.
30
Political Economy of Internet and Mobile Phones: Mozambique
REFERENCES
Government of Mozambique (2010) Report on the Millennium Development Goals.
Ministry of Planning and Development.
IFAD (2010) Enabling poor rural people to overcome poverty in Mozambique. Retrieved
at
http://www.ifad.org/operations/projects/regions/Pf/factsheets/mozambique_e
.pdf, accessed on 30 May 2012.
Mabila, F, Mboane J.N and Mondlane, A. I (2010) Mozambique ICT Sector Performance
Review 2009/2010. Research ICT Africa 2010. Towards Evidence-based ICT
Policy and Regulation. Volume Two, Policy Paper 16.
World Bank (2010) Development and Climate and Report. World Development Report.
31
Political Economy of Internet and Mobile Phones: Mozambique
LIST OF ACRONYMS
3G ........................... Third Generation Mobile Technology
4G ........................... Fourth Generation Mobile Technology
ADSL ...................... Asymmetric Digital Subscriber Line
CDMA .................... Code Division Multiple Access
CIUEM .................. Information Technology Centre - Eduardo Mondlane University .... Mozambique
CMC........................ Community Multi-Media Centre ...................................................................... Mozambique
CSCS ....................... Supreme Council of the Media .......................................................................... Mozambique
EASSy .................... East African Submarine System
EDM ...................... Electricidade de Moçambique .......................................................................... Mozambique
EMOSE .................. Empresa Moçambicana de Seguros, the State insurance company ... Mozambique
EMOTEL .............. Empresa Moçambicana de Telecomunicações .......................................... Mozambique
FRELIMO ............ Front for the Liberation of Mozambique ..................................................... Mozambique
FSAU ...................... Fundo do Serviço de Acesso Universal (Universal Service and Access Fund)
................................. Mozambique
GABINFO ............. Department of Information ................................................................................ Mozambique
GDP ........................ Gross Domestic Product
GSM........................ Global System for Mobile Communications
ICT .......................... Information and Communications Technology
IFAD....................... International Fund for Agricultural Development
IGEPE .................... Mozambican State Holdings. Management Institution .......................... Mozambique
INCM ..................... National Communications Institute of Mozambique ............................... Mozambique
ISP .......................... Internet Service Provider
mCel....................... Moçambique Celular ............................................................................................. Mozambique
MDM ..................... Mozambique Democratic Movement ............................................................ Mozambique
MMS....................... Multimedia Messaging Service
MOSTIS................. Science, Technology and Information Strategy ......................................... Mozambique
MTC ....................... Namibia’s largest mobile network
PC ........................... Personal Computer
PETROMOC......... Petróleos de Moçambique, the State oil distributor ................................ Mozambique
RENAMO ............. Mozambique National Resistance .................................................................. Mozambique
RM ......................... Radio Mozambique ............................................................................................... Mozambique
SEACOM ............... A submarine cable operator with a network of submarine and terrestrial
SMS ........................ Short Message Service
SPI .......................... The holding company for the ruling party, FRELIMO ............................. Mozambique
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Political Economy of Internet and Mobile Phones: Mozambique
TDM ....................... Mozambique Telecommunications ................................................................. Mozambique
TVM ...................... Mozambique Television ...................................................................................... Mozambique
UMTS..................... Universal Mobile Telecommunications System .........................................
WiMAX ................. Worldwide Interoperability for Microwave Access
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