Guinea: Guinea Communication Profile

Telecoms, Mobile and Broadband

International fibre optic cable landing in 2012 will enable broadband services

Guinea in West Africa has vast mineral resources and is from now on of the poorest nations in the world. With competing mobile networks, its telecommunications sector has shown triple-digit increase rates for three years in a row following the entry of world-class international operators, MTN and Orange. The other competitors are Intercel, Cellcom and Lagui, the mobile unit of the national fixed-line operator, Sotelgui.

Following the exit of Telekom Malaysia in 2008, Sotelgui is being prepared for renewed privatisation, creating an attractive opportunity for a strategic investor. Despite the rapid increase, mobile market penetration is still well below the African average, and the country’s fixed-line and Internet markets are virtually untapped.

Broadband services are still very limited and expensive. The planned arrival of at least international fibre optic submarine cable in 2012 will bring abundant and competitive international bandwidth to Guinea for the first time which will have nothing short of a revolutionary effect on telecommunications in the country.

The country slipped into a mild recession in 2009, but stable GDP increase of between 4% and 5% per year is estimate for the period 2011-2016.

A licence fee dispute resulted in the temporary seizure of MTN assets in mid-2011, but the issue was quickly resolved.

Market highlights:

• At least international fibre optic submarine cable to land in 2012;
• MTN licence fee dispute resolved, seized assets released;
• Second privatisation of Sotelgui expected;
• Profiles of major players in amount market sectors;
• Estimates for mobile, fixed-line and Internet market at end-2012.

Estimated market penetration rates in Guinea’s telecoms sector – end-2011