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Djibouti Telecom joins DAR submarine cable consortium
Djibouti is one of the last countries in the world allowing its national telco, Djibouti Telecom (DT) a monopoly on all telecom services, including fixed lines, mobile, internet and broadband. The lack of competition has meant that the market has not lived up to its potential, although the country has a service-based economy consistently growing at 5 to 6% per year and is one of the best connected for fibre optic international cables the region. Though broadband services in Djibouti remain very expensive, continuing to hold back the full growth potential of the sector, new link to subsea cables will increase bandwidth and encourage a reduction in access prices. Growth in the mobile and internet markets is accelerating in line with DT's investment in its mobile network.
Nevertheless, competition and foreign investment are both required for the telecoms market to show solid development in coming years. In preparation for this, DT itself is forging international alliances.
Djibouti Telecom joins six other regional telcos to build the DARE submarine cable system, contracted to manage the Australia West Cable landing; growth in the mobile and internet sectors accelerates with 3G launch; Gulf Bridge International (GBI) signs MoU to land an extension of its cable to Djibouti, Djibouti Telecom trials LTE services.
Market penetration rates in Djibouti's telecoms sector 2015 (e)
Penetration of telecoms services: | Penetration
Fixed-line telephony | 32.4%
Fixed broadband | 3.3%
Mobile SIM (population) | 14%
Companies mentioned in this report:
Djibouti Telecom (Evatis, Adjib); Telecom Italia Sparkle; Saudi Telecom Company (STC); Algerie Telecom.
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