SAMPLE PAGES Equatorial Guinea: Telecom …This report provides an executive-level overview of the telecommunications market in Equatorial Guinea today, with detailed forecasts of

© 2015 Pyramid Research | Country Intelligence Report

SAMPLE PAGES Equatorial Guinea: Telecom Market’s Potential Curbed by Government Involvement, Limited Competition

This report is part of Pyramid Research’s series of Africa and Middle East Country Intelligence Reports | May 2015 Edition

Leslie Arathoon | Research Director

Hussein Ahmed | AME Analyst

https://www.pyramidresearch.com/



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Summary Equatorial Guinea: Telecom Market’s Potential Curbed by Government Involvement, Limited Competition,’ a new Country

Intelligence Report by Pyramid Research, offers a precise, incisive profile of Equatorial Guinea’s mobile and fixed

telecommunications markets based on comprehensive proprietary data and insights from our research in the Equatorial Guinea

market. Published annually, this presentation-quality, executive-level report provides detailed analysis of the near-term

opportunities, competitive dynamics and evolution of demand by service type and technology/platform across the fixed telephony,

broadband and mobile sectors, as well as a review of key regulatory trends.

This report provides an executive-level overview of the telecommunications market in Equatorial Guinea today, with detailed forecasts of key indicators up to 2019. It delivers deep quantitative and qualitative insight into Equatorial Guinea’s telecom market, analyzing key trends, evaluating near-term opportunities and assessing risk factors, based on proprietary data from Pyramid Research’s databases.

The Country Intelligence Report provides in-depth analysis of the following: Regional context: telecom market size and trends in Equatorial Guinea compared with other countries in the region. Economic, demographic and political context in Equatorial Guinea. The regulatory environment and trends: a review of the regulatory setting and agenda for the next 18-24 months as well as

relevant developments pertaining to spectrum licensing, national broadband plans, number portability and more. A demand profile: analysis as well as historical figures and forecasts of service revenue from the fixed telephony, broadband,

mobile voice and mobile data markets. Service evolution: a look at changes in the breakdown of overall revenue between the fixed and mobile sectors and between

voice, data and video from 2014 to 2019. The competitive landscape: an examination of key trends in competition and in the performance, revenue market shares and

expected moves of service providers over the next 18-24 months. In-depth sector analysis of fixed telephony, broadband, mobile voice and mobile data services: a quantitative analysis of service

adoption trends by network technology and by operator, as well as of average revenue per line/subscription and service revenue through the end of the forecast period.

Main opportunities: this section details the near-term opportunities for operators, vendors and investors in Equatorial Guinea’s telecommunications.



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Key findings

Key findings of the report include:

In 2014, Equatorial Guinea’s telecom market generated an estimated US$85m in total service revenue, a 12.0% increase over the previous year. Mobile voice remains the most significant revenue segment, accounting for 59.3% of total revenue in 2014. We expect mobile data revenue to expand at a CAGR of 27.0% to reach $23m by 2019.

The incumbent, Getesa-Orange, dominates the telecom market in the country, offering both mobile and fixed services. In terms of mobile subscriptions, the operator has a share of around 80% in 2014. In regard to revenue, the operator also commands a share of more than 80%. Other operators Muni and Gecomsa have struggled to make a significant impact in the telecom market since launch.

Over the next five years, operators will seize opportunities in the data services segment, largely through diversifying their service portfolio with more granular voice and data bundles, and potentially launching new services such as mobile money, mobile health and social media bundles. These have proven popular among market-leading operators in other regional markets. Vendors have an opportunity to support operators in monetizing such services and ensuring networks can handle the growing data traffic expectations.



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Reasons to buy

This Country Intelligence Report offers a thorough, forward-looking analysis of Equatorial Guinea’s telecommunications market, service providers and key opportunities in a concise format to help executives build proactive and profitable growth strategies. Accompanying Pyramid Research’s Forecast products, the report examines the assumptions and drivers behind ongoing and

upcoming trends in Equatorial Guinea’s mobile communications, fixed telephony, and broadband, including the evolution of service provider market shares.

With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality. The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from

local market players, which enables executives to quickly get up to speed with the current and emerging trends in Equatorial Guinea’s telecommunications market.

The broad perspective of the report coupled with comprehensive, actionable detail will help operators, equipment vendors and other telecom industry players succeed in the challenging telecommunications market in Equatorial Guinea.



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Report highlights: Demand profile

Sources: Pyramid Research, operators Sources: Pyramid Research, operators

The underdevelopment of the data sector in Equatorial Guinea will translate into double-digit data service revenue growth over the 2014-2019 period as the industry plays catch-up.

EQUATORIAL GUINEA COMMUNICATIONS MARKET REVENUE, 2012-2019

Rev

enu

e (U

S$ m

illio

ns)

SEGMENT REVENUE CAGRs, 2014-2019

Fixed broadband X.X%

Fixed circuit-switched voice X.X%

Mobile data X.X%

Mobile voice X.X%

Market total X.X%

$0

$20

$40

$60

$80

$100

$120

2012A 2013A 2014A 2015E 2016E 2017E 2018E 2019E



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Equatorial Guinea’s telecom market generated an estimated $XXm in 2014, X.X% more than in 2013. Mobile voice revenue continues to be the largest service category, accounting for X.X% of total revenue in 2014. We expect mobile voice to remain the largest revenue category over the forecast period, largely due to its reliable nature and relative inexpensiveness when compared with fixed telephony. Mobile data revenue growth has been limited to date given limited coverage, poor service reliability and the late entry of 3G services. Data service revenue increased X.X% in 2014, in part the result of the introduction of 3G in 2014 and the demand for sports content in the lead up to the 2015 Africa Cup of Nations hosted by

Equatorial Guinea. Between 2014 and 2019, mobile data revenue will increase at a CAGR of X.X%, to reach $XXm in 2019. Fixed circuit-switched voice accounted for X.X% of total revenue in 2014, high considering that fixed voice penetration lies at a mere X.X% of the population and speaks to the high fixed ARPU levels in Equatorial Guinea.

In US dollar terms, the market will exhibit a revenue drop in 2015-2016 largely as a result of the devaluation of the CFA franc projected by the EIU. Over the 2014-2019 period, total service revenue will increase at a CAGR of X.X% in US dollar terms but X.X% in local currency.

Report highlights (cont’d): Demand profile

Source: Pyramid Research

MARKET SEGMENT REVENUES 2012A 2013A 2014A 2015E 2016E 2017E 2018E 2019E

Mobile voice $Xm $Xm $Xm $Xm $Xm $Xm $Xm $Xm

Mobile data $Xm $Xm $Xm $Xm $Xm $Xm $Xm $Xm

Fixed circuit-switched voice $Xm $Xm $Xm $Xm $Xm $Xm $Xm $Xm

Fixed broadband $Xm $Xm $Xm $Xm $Xm $Xm $Xm $Xm

Market total $Xm $Xm $Xm $Xm $Xm $Xm $Xm $Xm

Mobile voice is the preferred mode of communication, thus voice is expected to remain the most dominant service revenue component overall.



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Report methodology

The Equatorial Guinea Country Intelligence Report’s detailed analysis of the trends, regulatory environment, competitive dynamics and opportunities in the fixed and mobile service markets in Equatorial Guinea is built around Pyramid Research’s Forecast products, the most comprehensive demand, growth and market share tracking service available in the industry. These forecasts are developed using a bottom-up methodology that combines secondary and primary research with international benchmarking and quantitative modeling in order to present a complete picture of the socio-demographic, competitive and demand trends affecting Equatorial Guinea. Primary research involves interviews with service providers, vendors, the regulatory authority and other market participants as well as end-user surveys on an ongoing basis, led by Pyramid Research’s regional experts. The secondary research effort includes obtaining relevant data and intelligence through publicly available sources, regulatory authority publications, trade associations, specialist databases, company financial reports, presentations and press releases. Pyramid Research’s proprietary databases tracking 102 countries worldwide allow for unmatched international benchmarking capabilities to inform the assumptions behind projected technology and service adoption trends.



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Country Intelligence Report

Pyramid Research’s premium Country Intelligence Reports are the industry’s best available analysis of market trends, regulatory environments and competitive dynamics for 101 countries worldwide. Each report offers a precise, incisive profile of the converged telecommunications, media and technology sectors, based on proprietary data from Pyramid Research’s country-by-country research. Published annually, these executive studies provide a holistic view of communications markets around the world by analyzing key trends, evaluating near-term opportunities and assessing upcoming risk factors.

Austria Belgium Bulgaria Czech Republic

Finland France Germany Greece Hungary Ireland Italy

Netherlands Norway Poland Portugal Romania Russia Slovakia Spain Sweden Switzerland UK Ukraine

Afghanistan Australia Bangladesh China Hong Kong India Indonesia Japan Malaysia Myanmar

New Zealand Pakistan Philippines Singapore South Korea Sri Lanka* Taiwan Thailand Vietnam

COUNTRY INTELLIGENCE REPORTS AVAILABLE FROM PYRAMID RESEARCH:

Algeria Bahrain Benin* Botswana Cameroon CAR* Congo-DRC Côte d’Ivoire*

Egypt Equatorial Guinea

Gabon Ghana

Guinea Bissau

Guinea (Conakry)

Iran Iraq Israel Jordan Kenya Kuwait Madagascar Mali Mauritius Morocco

Niger Nigeria Oman Qatar Saudi Arabia Senegal South Africa Sudan* Tanzania Togo* Tunisia Turkey UAE Uganda

North & Latin America

Argentina Bolivia Brazil Canada Chile Colombia Costa Rica Dominican Republic

Ecuador El Salvador

Guatemala Honduras Mexico Nicaragua Panama Paraguay Peru Puerto Rico Uruguay US Venezuela

Europe Middle East & Africa Asia-Pacific

* Abridged version



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About Pyramid Research

ADVISING LEADERS IN THE GLOBAL COMMUNICATIONS INDUSTRIES ON EMERGING MARKETS AND SERVICES OPPORTUNITIES

Pyramid Research (www.pyramidresearch.com) offers practical solutions to the complex demands our clients face in the global communications industry. Its analysis is uniquely positioned at the intersection of emerging markets, emerging technologies and emerging business models, powered by the bottom-up methodology of our market Forecasts for more than 100 countries — a distinction that has remained unmatched for more than 25 years.

HOW WE COVER COMMUNICATIONS MARKETS

Our highly structured analysis closely examines the performance, technology trends, macroeconomic and regulatory environment, of service providers and equipment vendors in each of the more than 100 countries we cover. Using a bottom-up approach, we size market demand across services and countries, and conduct end-user surveys to validate adoption trends and anticipate shifts in demand. Our commitment to intensive, direct interviewing of regulatory authorities, service providers and manufacturers — complemented with end-user data — ensures the most reliable portrait of every market we examine.


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Table of contents

Executive summary 3 Market and competitor overview

Regional context 5 Economic, demographic and political context 6 Regulatory environment 7 Demand profile 11 Service evolution 13 Competitive landscape 14 Major market players 15

Segment analysis Mobile services 17 Fixed services 21

Identifying opportunities Overall market opportunities 24

SECTION PAGE



Equatorial Guinea telecom market size and growth prospects in a regional context, 2014 5

Country indicators 6

Regulatory structure and policy 7

Major telecommunications policy issues 8

Equatorial Guinea communications market revenue by segment, 2012-2019 11

Segment revenue CAGRs, 2014-2019 11

Segment revenues 2012-2019 12

Service revenue mix: voice, data & video, 2014, 2019 13

Service revenue mix: fixed & mobile, 2014, 2019 13

Service revenue by operator, 2014 14

Key telecom market players 14

Major telecommunications market players 15

Mobile subscriptions and penetration, 2012-2019 17

Key mobile market indicators, 2014 17

Mobile data revenue mix, 2014, 2019 18

Total mobile ARPS; data percentage of total mobile ARPS, 2012–2019 18

Mobile market shares by subscriptions, 2012-2019 19

Mobile subscriptions by technology family, 2013-2019 20

Fixed-line penetration of population, 2012-2019 21

Key fixed market indicators, 2014 21

Fixed voice revenue, 2012-2019 22

Internet revenue, 2012-2019 22

Opportunities in the Equatorial Guinea telecommunications market 24

Table of exhibits

SECTION PAGE


Documents

SAMPLE PAGES Equatorial Guinea: Telecom …This report provides an executive-level overview of the telecommunications market in Equatorial Guinea today, with detailed forecasts of