Efforts to advance Gabon’s data and communications technology (ICT) sector continue, with the national government establishing a new agency that will be responsible for coordinating amount activities relating to the digital economy. At the same time, regional nations are working together to develop a common legal framework for the ICT market, which could provide a boost to the sector.

 

In January 2011 the Gabonese government announced the creation of the National Agency of Frequencies and Digital Infrastructure (Agence Nationale des Infrastructures Numériques et des Fréquences, ANINF). The new organisation, which replaces the National Agency for Communication Technology and Data, will statement to the presidency and receive technical guidance from the Ministry of Communications, Post and the Digital Economy. In an effort to create a coherent national system, ANINF will provide for the establishment and management of infrastructure and shared national resources in the areas of telecommunications, broadcasting and data technology.

In the meanwhile, the Telecoms Regulatory Agency (Agence de Régulation des Télécommunications, ARTEL) announced in January 2011 that it would cut the cost of government certification of telecoms equipment by 50%, in an effort to reduce communication costs and promote the country’s digital economy.

 

Gabon is as well working to position itself as an ICT centre for the Economic Community of Central African States (Communauté Économique des États de l’Afrique Centrale, CEEAC). The country was ranked eighth in Africa and first in the CEEAC region on an index of ICT development published in 2010 by the International Telecommunication Union (ITU), the UN agency for the ICT sector.

 

In April, Gabon hosted a conference , organised by the CEEAC and the ITU, to discuss the coordination of ICT regulations across the nations of the CEEAC. At the gathering in Libreville, representatives of member states reviewed drafts of several model laws concerning the institutional and legal framework for the development of digital infrastructure, networks and communication services; the provision and financing of universal service; strengthening the governance of electronic communication networks; interconnection; and radio frequencies.

 

The draft laws were prepared in collaboration with the Harmonisation of the ICT Policies in Sub-Saharan Africa (HIPSSA) project. Jointly funded by the ITU and the European Commission, the HIPSSA project aims to coordinate ICT regulations and policies across nations, inclunding build human and institutional capacity through targeted training and knowledge-sharing measures. The primary goal of HIPSSA is to address regional regulatory challenges and to create an environment conducive to large-scale investment in the ICT sector.

 

If successful, the HIPSSA project could be a key step in realising operators’ potential in the regional market. A lot of telecoms operators – both local and international – are looking to increase their presence in the rapidly growing African market. By establishing a regional centre, operators can spread their costs across a larger base of users, making it a additional attractive investment.

With mobile telecoms operators, Gabon’s market is already quite competitive. According to ARTEL estimates, the mobile phone penetration rate reached 117% in 2009. The real penetration rate, which takes into account the fact that some users have multiple SIM cards, may be lower, at around 70-90%. However, rising request for innovative offerings, including mobile internet and other data services, may present significant opportunities for increase. In particular, the introduction of 3G services will be particularly significant, as it will likely act as a springboard for the country to expand to 4G, with a corresponding increase in data speeds that will enable better availability of advanced services. In the long run, the local telecoms sector could possibly provide converged internet, television and mobile phone services as well.

 

It seems, therefore, that despite high levels of penetration, there remains a significant potential for increase both in niche services and on a regional level. Steps currently being taken toward a additional streamlined, unified regulatory framework may as well help operators realise their broader potential.

 

 

Effort to advance Gabon’s telecoms industry and establish itself as a ICT centre in the Central African region took an important step forward as the Telecommunications Regulation Agency (l’Agence de Régulation des Télécommunications, ARTEL), announced in February 2011 that access to the SAT-3/WASC fibre-optic cable would be opened to all operators in the telecommunications sector.

The SAT-3/WASC cable has long been the primary fibre-optic cable providing high-speed internet and 3G telephone capability in Gabon. The submarine cable stretches 14,500 km and links Europe with South Africa, passing through nine other countries on the West African coast. The cable became operational in 2002 and is managed by an international consortium in which Gabon is represented by the telecommunications operator, Gabon Telecom.

Until 2011, Gabon Telecom was the sole operator able to access the cable, restricting its competitors to using more costly satellites. A decree signed in September 2010 by Laure Olga Gondjout, then minister of communications, post and the digital economy, indicated that the eventual change in access to the SAT-3 cable would guarantee “non-discriminatory, transparent and affordable access to all telecommunications operators.”

 

With the end of Gabon Telecom’s monopoly, telephone and internet prices are expected to decrease as the fibre-optic technology is less burdensome and costly than the use of satellites. International communications are expected to become more fluid, and should bring faster internet connections nationwide.

The demand for broadband internet is rapidly increasing in Gabon and the region with the introduction of 3G technology and the gradual introduction of digital television (Télévision Numérique Terrestre, TNT). The growing number of professionals and tourists expected to attend the Africa Cup of Nations in 2012, the primary international football association competition in Africa, is also expected to increase demand on the digital network.With the rise, the SAT-3 cable is expected to reach maximum capacity within the next two years. In an effort to provide the internet connectivity necessary to support an emerging economy, the government has undertaken several efforts to develop fibre-optic capacity, most notably the Africa Coast to Europe (ACE) project.

Named an “ambitious digital development project” by Gondjout, the ACE project envisions a 12,000-km submarine communications cable laid along the West African coast. The cable is intended to increase linkages with Europe as well as between countries throughout West Africa. Up to 20 African states will be able to benefit from high-speed internet provided by the ACE cable, with a capacity of 1.92 TB per second.

The main landing point in Gabon will be in Libreville, with an extension to Port-Gentil already in the plans. The total project cost is estimated to reach CFA387.8bn (€589.5m), to be shared among consortium members. A preliminary financing agreement signed with Alcatel ASN in June 2010 sets the government participation at CFA14bn (€21.3m). A second financing agreement signed in November 2010 with Total Gabon concludes that the remaining amount, approximately two-thirds of Gabon’s total investment, will be contributed through public-private partnership led by Total Gabon.

 

Construction of the ACE cable, originally planned for September 2010, was officially launched in November. The project is estimated to require 20 months to complete, meaning the activation date will likely be in the latter half of 2012. The government has confirmed that access to the broadband cable will be made available to all telecoms operators.

 

The Ministry of Communications, Post and the Digital Economy saw a changeover during a government-wide cabinet reshuffle in January 2011. Former communications minister Gondjout was named secretary-general of the presidency of the republic. The new minister of communications is Paul Ndong Nguéma, a representative in the National Assembly since 2006 and a Customs official who served as president of the financial committee of the World Customs Organisation from 2007-08. The government stated that the cabinet reshuffle was intended to spur on a new dynamic in key sectors of the economy in 2011.

The government and private sector have both demonstrated a commitment to making much-needed improvements to the provision of internet and mobile services in Gabon. With expanded access to telecommunications technology and increased investment in new infrastructure, Gabon is taking a key step toward achieving its goal of becoming a regional ICT centre.

 

02/11/2010

Gabon’s oil revenues make it of the wealthiest nations in Africa. GDP per capita is well above the African average, although a distorted income distribution and poor social indicators are evident. The telecom market was liberalised in 1999 when the government awarded three mobile telephony licences and Internet Service Provider (ISP) licences and established an independent regulatory authority. Following unsuccessful attempts, the privatisation of Gabon Telecom (GT) finally succeeded in 2007 when Vivendi-controlled Maroc Telecom bought a majority stake.

 

With competition between three service providers – Zain (formerly Celtel), GT’s Libertis, and Etisalat’s Moov – Gabon became of the first nations in Africa to exceed 100% mobile market penetration in 2008. A fourth operator, USAN (operated by Bintel under the brand name Azur) entered this virtually saturated market in late 2009. This is expected to accelerate the downward trend in average revenue per user (ARPU) which until recently has remained at remarkably high levels.

 

In contrast with the mobile market, Gabon’s fixed-line and Internet/broadband sectors have remained underdeveloped due to a lack of competition and the resulting high prices. The country has sufficient international bandwidth on the SAT-3/WASC/SAFE fibre optic submarine cable which runs from Portugal via South Africa to the Far East, but this facility has been monopolised by GT. The arrival of new international submarine fibre optic cables in 2010 and 2011 is expected to bring improvements in this sector. However, no licences for the frequency spectrum required to launch third generation (3G) mobile broadband services have from now on been issued to the operators. In the meantime, ISPs are rolling out WiMAX wireless broadband networks and are competing in the fixed-voice market by offering VoIP Internet telephony.

This statement contains an overview and analysis of Gabon’s telecommunications market, profiles of the major players in amount market sectors, relevant statistics, and scenario forecasts for 2012 and 2015 for the country’s fixed-line, mobile and Internet markets.