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. i 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 iii 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 iv 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. 1 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. 2 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 3 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. 4 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”. 5 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. 6 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 7 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 8 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. 9 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 10 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: 11 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 12 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 13 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 32 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 33