1. Dynamic market stunted by demand-side constraint
Onkokame Mothobi and Francisco Mabila
Research ICT Africa
Cape Town, South Africa
CPRsouth 2018, Maputo-Mozambique.

2. Movitel entry shakes up the market in 2012
Mozambique was one of the first countries to adopt telecommunications reforms
Despite the telecom sector being seen as the most open, the fixed line market remains uncompetitive and undeveloped
Competition intensified in following the entry of the third player

3. Intensive competition in the market
Vietnamese backed Movitel has shaken up the Mozambican mobile market with its high investment low cost business model — creating the largest 2G/3G network in the country and winning an unprecedented third entrant share of 37% of subscriber based market share in its first year of operation.
Incumbents, Vodacom and MCel have faced intense competition from the late entrant, with mCel being close exiting the market and Vodacom ultimately gaining the giant share of the market with 41% of subscribers compared to Movitel at 29% and MCel down to 30% following the introduction of SIM registration, which took unregistered users off the network.

4. Pricing competition as a strategy to gain market share
Vodacom responded to this pressure by initially responding to pricing pressure while investing heavily in its network and competing against Movitel on quality rather than price.
The inability of the incumbent mobile operator, MCel, and the fixed line incumbent, TDM, to respond to these pressures have resulted in a decision by Government to merge the two operations by the end of the year.
As of 2017, the two operators were reported to have accumulated a debt of more than MZN 14 billion (USD 230 million)

5. Revenue share

6. How does Mozambique compared with other African countries in the RAMP Index
Prices for data and voice have fallen dramatically resulting in Mozambique ranking 24th out of 49 countries on the RIA African Mobile Pricing (RAMP) Index and third out of 49 African countries on the RAMP 1G Data Index.

7. Why then are majority not online?

9. Nationally representative surveys of ICT access and use by households & individuals aged 15-65; In 16 developing countries; Data represents 30% of the global population; 28,900 face-to-face interviews; +/-3 margin of error
Sample sizes

10. Sample
Two sampling frames were available for South Africa based on the 2011 census: Enumerator Areas (EAs) and Small Layers (SAL)
Out of 90, 425 EAs, a total of 75 EAs were sampled using SRS 47 urban areas and 32 rural areas were sampled ( 60% urban : 40% rural split)
The target sample of 1800 was spilt in to 60% urban and 40% rural, yielding a target of 720 rural and 1080 urban households
Household and individual weights were then constructed based on the census and world data on urban and rural, male and female proportions

11. Individual sample structure
Table 1:Sample characteristics
After Access survey
World Bank
Male
44%
48%
Female
56%
52%
Urban
33%
Rural
67%
Source: World Bank Population Review, 2018 
             Instituto Nacional de Estatistica, 2018

12. Individual sample structure
Table2:Main activity during the last 6 months
National
Female
Male
Urban 
Rural
Student/pupil
13%
16%
15%
Unpaid housework (e.g. housewife)
38%
19%
53%
27%
43%
Retired 1% 0%
0,4%
Unemployed, seeking for a job
10%
14% 8%
Unemployed, not looking for a job 6% 5% 3%
Disabled and unable to work
Employed 7%
11%
17% 2%
Self-employed
24%
29%
20%
25%

13. Supply- vs Demand-side indicators
Table2:Main activity during the last 6 months
National
Female
Male
After Access Survey
ITU Statistics
Difference (bias)
Ghana
26%
35%
+9%
Kenya 0%
Mozambique
10%
18%
+8%
Nigeria
30%
-4%
Rwanda 9%
20%
+11%
South Africa
53%
54%
+1%
Tanzania
15%
13%
-2%
Source: RIA ICT After Access 2017 and ITU Statistics, 2017

14. Development indicators
Table 3:  Electricity and water connection to the household
Mozambique
Rwanda
Tanzania
South Africa
No electricity
52%
68%
53% 6%
Main electricity grid
24%
29%
33%
89%
Generator
0.3%
0,3% 1%
Solar
22% 3%
18%
No piped water
84%
80%
86%
27%
Piped water into the yard
14%
10%
Piped water into the house 2% 4%
40%
Source: RIA After Access Survey, 2017

15. Households with no electricity

16. Household ICT use location gap
Table 4: Household ICT use
National
Urban 
Rural
Location gap
Landline 1% 2%
0,1%
95%
Desktop 5
0,3%
94%
Laptop 7%
4,0%
43%
Tablets 8%
15%
73%
Television
23%
40%
10%
75%
Radio
37%
35%
13%

17. Household indicator rural-urban gap?

18. Mobile phone ownership, Internet use and GNI per capita

19. Mobile phone gender gap

20. Gender gap in Internet use

21. Reasons for not using the Internet

22. Huge urban-rural devide in Internet use in Mozambique and Tanzania

23. Reasons for not owning a smartphone

24. Reasons for not owning a smartphone

25. Digital activities

26. Activities on the Internet

27. Mobile money services

28. Mobile money use

29. Questions/Comments? Thank You omothobi@researchictafrica.net
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