ITU Regional Economic and Financial Forum of
Telecommunications/ICT for Africa
Costing and tariff policies in the region
São Tomé and Principe, 2‐3 February
Presented By Mr. Vieira Sapalo
São Tomé and Príncipe is a small island nation of the western coast of
mainland Africa.
Briefing:
Economic
Context
Social & Cultural
Context
Technological
Context
2013
Growth 2012
1.001 km2
-
GDP ($M)
311
17%
Population
192,000
2.6%
Urban population
67%
1.25%
Per capita GDP ($)
1,609
4%
Poverty (%Pop)
61.7%
-
Ranking on the Human
Development Index
# 142
-
Surface area
Currency: Dobra (STD)
1 EUR = STD 24.500
1 $ = STD 21.087
• Of the 1.001 km2 that constitute the Santomean
surface area, more than 800 km2 are taken up by the
island of São Tomé, Príncipe taking up the rest;
• With a population growth rate of 2% per annum, the
island presents high population density, around 188
inhabitants per square kilometer;
• Per capita GDP is among the lowest in Africa, under
$1,609. However, it is growing (4% a year);
• More than 50% of the population lives on less
than US$3.50 a day. However, the informal
sector is pointed out as a challenge to accurate
measurement of consumption by Santomeans;
• The Human Development Index presents low
figures. Yet, cross-referencing the Santomean
pattern with similar countries, STP is better
positioned.
... and where per capita GDP remains below African average
Economic
Context
Evolution of GDP and National per capita Income
Unit: $ current
1,090 1,134 1,128
550
539
665
628
630
Social & Cultural
Context
National per capita income
1,355 1,402
1998
2000
2002
708
736
782
883
1,080
1,140
1,240
• National per capital income has
doubled in a 10-year period
1,320
970
710
740
2004
800
2006
PIB per Capita
850
2008
2010
2012
2014
RN per Capita
• Per capita GDP remains low when
compared to the African average
Per Capita GDP 2013
São Tomé
Ghana
Technological
Context
Nigéria
Cabo Verde
Angola
• GDP increases are matched at the
same rate by population growth and
results on the increase of the National
Income until 2018
1,609 USD
1,850 USD
3,005 USD
3,784 USD
5,668 USD
Development of Telecommunication Operators,
Products and Services
UNITEL
Voice
Texts
Mobile Internet
Voice
Social Networking
Texts
Video Calls
Market Evolution and Penetration in STP
62%
68%
Subscriptions
71% (2012)
50%
Penetration of Telecommunication
Services
32%
0%
0%
1%
3%
5%
8%
12%
2000
2001
2002
2003
2004
2005
2006
122,000
19%
2007
2008
2009
2010
2011
2012
Evolution of Land Line Telephony Penetration
3.3%
2000
3.8%
2001
4.4%
4.7%
2002
2003
4.7%
2004
4.7%
4.9%
2005
2006
4.9%
4.8%
4.7%
4.7%
4.7%
4.7%
2011
2012
8,000
2007
2008
2009
2010
Evolution of Land Line Broadband Penetration
0.52%
0.42%
0.20%
0.22%
2007
2008
0.27%
0.34%
900
0.08%
0.00%
2000
2001
2002
2003
2004
2005
2006
2009
2010
2011
2012
• Mobile currently enjoys 71%
penetration and has reached the
maturity stage.
• Subscriptions to landlines have
been decreasing since 2006,
having been surpassed by mobile
in 2004. Only a restricted set of
people have access to land line
telephony services.
• Broadband Internet served over
land lines has been growing 20%
a year, however, it serves less
than 1% of the population.
Data client numbers grow faster than voice client numbers, as
penetration in voice services has almost stagnated
Population
Penetration
X
=
Total Market
Voice Market Assumptions:
(2012)
62.1%
68.3%
71.0%
71.7%
72.4%
73.1%
73.9%
74.6%
• Population CAGR 2%
• Mobile penetration CAGR at 1%,
consistent with market maturity.
49.7%
31.6%
Data Market Assumptions:
2008
2009
2010
2011
2012
2013
2014
(2012)
2015
2016
14.1%
10,8%
7.1%
4.7%
2017
• The future standard will be
consistent with data market
evolution in Africa (penetration will
reach 10.8% within 3 years) and
inferior growth in 2017, bringing
penetration to 14.1%.
1.8%
2013
2014
2015
2016
2017
Source: IMF, ITU, Deloitte, Assumptions validated by Client
Market Evolution in the Region Product Pricing
Regional market evolution has trended towards decreasing prices and changing supply. Three global phenomena to consider:
Touch screens dominate the market, the emergence of low-price and high-end segment terminals, and also tablets as a
secondary device.
Variation of pricing for mobile terminal sets
($)
Evolution of tablet quantity and pricing
70
60
50
40
Number of Tablets
(millions)
Average Tablet Price
($)
30
20
10
0
Evolution of Smartphone Penetration
(South Africa)
8
10
13
Alcatel One Touch
Nokia 110
Huawei E177
15
Smartphone Weight
For total number of cell phones
Millions of Smartphones
5
8%
13%
17%
22%
26%
2010
2011
2012
2013
2014
Note: Prices shown refer to retail, no-contract prices
30%
33%
Smart mini
Nokia 108
Média Amostra
Generalized Technological Accession
• An addition to quick uptake of smart phones and
tablets, low-priced handsets have emerged.
These devices have had significant impact in the
higher penetration of mobile devices worldwide
(especially in developing countries).
Source: PriceTRAX, Deloitte
Retail payment plans in regional markets where Unitel operates
Comparision of retail plans based on local market
$30.00
$0.30
$0.28
$25.99
$0.25
GPRS services are cheaper in Cape Verde.
$20.00
$0.20
$0.16
$0.15
$0.12
$0.05
$25.00
$24.07
$0.20
$0.10
$0.28
$15.00
$0.12
$9.20
$9.20
$0.05
$0.09
$0.10
$0.09
$0.10
$10.00
$5.00
$0.00
$0.00
cst
Unitel
STP
Movicel
Unitel
Angola
Data/GB
Dados/GB
Voice/min
Voz/minuto
Note: Rates applied in communications within each operator's network.
Values expressed in US Dollars (USD)
CVMovel
Cabo Verde
SMS
Per-minute voice rates between Operators:
STP
Unitel  CST: $0,12
CST  Unitel: $0,20
Cape Verde
$7.10
$6.10
$0.05
Unitel
From the market analysis conducted in 3 countries,
it was concluded that, concerning basic voice and
SMS tariff, São Tomé and Príncipe offers the lowest
rates.
Unitel  CVMovel: $0,47
CVMovel  Unitel: $0,37
Angola
Unitel  Movicel: $0,25
Movicel  Unitel: $0,21
Regulation and Legislation of the sector in STP
Decree no. 23/2007
• In S. Tomé and Príncipe, AGER is responsible for regulating and overseeing telecommunication sectors and
services.
• Telecom rates are integrated through definition of a base price, which must abide by an averaged price for the
service or service package submitted for approval.
• Operators, submitting to rate integration present to AGER, per the rates indicated on article 4 of Decree no.
23/2007, a calculation to establish that their rates comply with the clauses in the article.
• Rate integration is decided by AGER to correct market failures, with the intent to:
 Make up for absence or insufficiency in service competition.
 Ensure that operators are treated equitably.
 Protect the consumer.
In sum, Unitel rates in STP are defined based on the financial framework of
Decree no. 23/2007.
THE END
Thank you