Increasing Broadband Internet Penetration
In the OIC Member Countries
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Technologies and trends regarding broadband marketThe technological infrastructure utilized for delivering broadband services in Cote d’Ivoire
consists of a mix of ADSL and fixed wireless for fixed networks, and 3G and 4G for mobile
broadband.
Regarding fixed broadband, four out of the five operators have displayed a mix of wireline
(ADSL, fiber optics) and wireless technology (WiMAX, CDMA, and satellite). As a result,
according to regulatory reports, as of the end of 2015 50% of fixed lines (55,803) are wireline
and the remainder (54,653) are wireless. There is one operator, YooMee, which relies
exclusively on Time Division - Long Term Evolution (TD-LTE) operating on the 2300 MHz
frequency band to offer fixed wireless service to Abidjan’s five million plus inhabitants50.
At the same time, both Orange and MTN are planning to deploy FTTx focusing on enterprises
and selected neighborhoods in key cities. FTTH deployment plans for both carriers target
upscale residential neighborhoods and business concentration areas in large cities (Abidjan,
San Pedro, Bouake, Yamoussoukro). Both operators recognize that the economics do not favor
fiber optic last mile deployment in the Ivoirian context. Each home connected in Abidjan, for
example, would cost approximately US$ 1,00051. Charging consumers a monthly subscription
fee to compensate for the investment. Is not feasible, as consumers would not recognize the
value-added of FTTH in terms of incremental speed. Therefore, customers would not be willing
to pay a price increase using the faster infrastructure. Additionally, with an underdeveloped
Over The Top market, the demand is still not high enough to fully use an FTTH connection.
Despite these considerations, both operators are pursuing FTTH deployment because it is
needed to serve the enterprise market. Moreover, they need to provide a competitive response
to players already active in Cote d’Ivoire, and to the potential entry of Google, which has
already deployed fiber in Accra (Ghana).
The split between fixed and mobile broadband reflects the demand trends discussed above: as
of the end of 2015, 99% of all broadband accesses are mobile, supported by 3G technology. By
auctioning technology-agnostic licenses at the beginning of 2016, the government authorized
the launch of 4G LTE mobile broadband service52 . As of this date, all three wireless operators
have deployed 4G technology. However, service coverage is restricted so far to the largest
cities. Even within the target cities, 4G coverage is not complete, with operators estimating
coverage between 20% and 30% of the population53.
50 Telegeography. YooMee TD-LTE user base reaches 4,000. 8 Apr 2015.
51 If a residential consumer is close to an enterprise location already benefitting from a fiber loop, the deployment cost
would be much lower.
52 Telegeography. C te d’Ivoire watchdog set to authorize 4G in 1Q16. 3 Dec 2015.
53 Source: field trip interviews.