Telecom: Six major facts to know the fixed internet market in Togo (2019-2020)

Telecom

Saturday, 04 December 2021 18:42

Telecom: Six major facts to know the fixed internet market in Togo (2019-2020)

(Togo First) - Over the past three years, the quality of landline internet has improved significantly in Togo. This is reflected by greater access to fiber optics in Lomé, and major investment commitments by operators. Togo First looks at the progress made in the sector in this article.

Access to landline internet bolstered amid Covid-19

The number of landline Internet subscribers in Togo increased by more than 65% to 52,707 in 2020. This surge, fostered by the social distancing measures linked to the Covid-19, was mainly driven by Togo Telecom and GVA Togo (Canalbox). While Vivendi's subsidiary was the main driver of this growth (+207%), the subscriber base of the Togolese incumbent operator has also increased considerably, up 38% to more than 32,500 subscribers.

Six major 1

Canalbox drives growth in the sector

Sustaining its 2019 upward dynamics, Canalbox - Togolese subsidiary of Vivendi group - more than tripled its number of fiber-optic customers in 2020. From 5,945, the figure soared to 18,720 (+207%). While impressive, this performance is still lower than the growth recorded in 2019, knowingly 404% (1,180 in 2018 against 5,945 in 2019).

In terms of revenue generated, the Internet Service Provider reached almost a billion CFA (990 million) in 2020, up by 230% compared to earnings generated in 2019 (where the figure had jumped by more than 400%).

Six major 2

Fiber-to-the-home: Canalbox overtakes Togo Telecom

Canalbox, therefore, snatched the place of the best provider of fiber-to-the-home (FTTH) internet from Togo Télécom last year. This is despite the latter gaining 56% (reaching 11,124) more customers over the period reviewed. On that segment, Canalbox’s subscriber base has passed the 18,000 mark.

Six major 3

Togo Telecom still leads ADSL and dedicated lines markets

Although it has lost its leadership position in the optical fiber segment, the incumbent operator continues to control the other access technologies. For ADSL, subscriptions have risen by 35%, while connections via dedicated lines have increased by 42%.

Six major 4

Togo Telecom alone accounts for more than 68% of landline Internet subscriptions, compared with 38% for CanalBox. Better still, with a turnover of 7.6 billion FCFA, up 35%, the TogoCom subsidiary now holds 86% of that market, far ahead of GVA (990 million FCFA, 11%), CAFE Informatique (227 million FCFA, 2.6%) and Teolis (42 million FCFA, 0.5%).

Six major 5

Café Informatique continues its fall from grace

Last year, Café Informatique lost more customers while the other ISPs active in the country experienced a pandemic-induced boom. From 2,334 clients in 2019, the company which is headed by Jean-Marie Noagbodji had 1,768 clients in 2020. The downward performance also spread to the firm’s income; it fell by 33% to 227 million FCFA from one year to the other.

Six major 6

“No-investment” policy

Six major 7

Besides Togo Telecom which increased its investments in 2020, other operators were prudent in 2020, lowering their spending.

Fiacre E. Kakpo

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.