Senegal delays on starting 5G trials

Senegal’s telecom market has witnessed consistent growth in recent years, with the number of mobile subscribers having increased 5.7% in the year to March 2020.


Sydney, June 17, 2020 (GLOBE NEWSWIRE) -- Just released, this edition of Paul Budde Communication’s focus report on Senegal outlines the major developments and key aspects in the telecoms markets.
Read the full report: https://www.budde.com.au/Research/Senegal-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

Orange Group’s local subsidiary Orange Senegal (Sonatel) is the dominant player in both the fixed-line and mobile sectors. The company reported solid revenue in 2019, and in mid-2020 it issued a XOF100 billion bond to finance its ongoing network upgrades and service offerings. the vibrant mobile sector continues to attract international investment, with Tigo having been acquired by a consortium and rebranded as Free Senegal, mirroring the brand name of an associated company in France which had upset the local market through cheap pricing and comprehensive service offerings.

Competition in the fixed-line sector was introduced when Expresso launched services as the second national operator (SNO) in 2009. However, Sonatel commands a near monopoly on fixed lines. The relatively low number of fixed lines is mirrored with fixed-broadband, with the result that more than 98% of all internet connections are via mobile networks.

BuddeComm notes that the outbreak of the Coronavirus in 2020 is having a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.

The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.

Key developments:

  • Sonatel Group issues XOF100 billion bond to finance investment plans;
  • Expresso delays LTE service launch due to COVID-19;
  • Tigo Senegal is rebranded as Free Senegal;
  • Expresso launches E-Money platform;
  • Digital Senegal 2016-2025 programs to cost XOF1,346 billion;
  • ATOS Senegal replaces the State IT Agency (ADIE) to manage the 3,000km fibre network;
  • Report update includes the regulator's market data to March 2020, operator data to Q1 2020, Telecom Maturity Index charts and analyses, assessment of the global impact of COVID-19 on the telecoms sector, recent market developments.

Companies mentioned in this report:
Sonatel (Orange Senegal), Free Senegal (Sentel, Tigo Senegal), Saga Africa Holdings, Sudatel (Expresso), Arc Informatique, Globacom, Mainstreet Technologies, Lycamobile Senegal

Read the full report: https://www.budde.com.au/Research/Senegal-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

 

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