Telecommunications reform in Malawi

By: Contributor(s): Material type: TextTextSeries: Policy Research Working Paper, no. 3036Publication details: Washington, D. C. The World Bank 2003Description: 58 pSubject(s): DDC classification:
  • 384 C5T3
Summary: TELECOMMUNICATIONS REFORM IN MALAWI George R.G. Clarke, Frew A. Gebreab and Henry R. Mgombelo* Abstract In 1998, the Government of Malawi decided to reform its telecommunications sector. Although the reform was impressive in some ways, it was modest when compared to the most ambitious reforms adopted in Sub-Saharan Africa. The two main accomplishments were splitting the incumbent fixed line monopoly, the Malawi Post and Telecommunications Corporation, into two companies, Malawi Telecommunications Limited (MTL) and Malawi Post Corporation (MPC) and issuing two new cellular licenses to two new private entrants. In addition, the Government also established a new regulator, which was separate from, but heavily dependent upon, the Ministry of Information and liberalized entry in value-added and Internet services. However, the Government had neither privatized the fixed-line telecommunications operator nor introduced competition in fixed-line services by the end of 2002. In this paper, we discuss sector performance before reform, details of the reform, the political motivation for reform, and events in the five years following the reform. The reform yielded mixed results. Although cellular penetration and Internet use expanded dramatically following reform, prices increased, especially for cellular calls, and fixed-line penetration remains low by regional standards. This paper is part of a larger six-country research program that looks at telecommunications reform throughout Sub-Saharan Africa. https://elibrary.worldbank.org/doi/pdf/10.1596/1813-9450-3036
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TELECOMMUNICATIONS REFORM IN MALAWI George R.G. Clarke, Frew A. Gebreab and Henry R. Mgombelo* Abstract In 1998, the Government of Malawi decided to reform its telecommunications sector. Although the reform was impressive in some ways, it was modest when compared to the most ambitious reforms adopted in Sub-Saharan Africa. The two main accomplishments were splitting the incumbent fixed line monopoly, the Malawi Post and Telecommunications Corporation, into two companies, Malawi Telecommunications Limited (MTL) and Malawi Post Corporation (MPC) and issuing two new cellular licenses to two new private entrants. In addition, the Government also established a new regulator, which was separate from, but heavily dependent upon, the Ministry of Information and liberalized entry in value-added and Internet services. However, the Government had neither privatized the fixed-line telecommunications operator nor introduced competition in fixed-line services by the end of 2002. In this paper, we discuss sector performance before reform, details of the reform, the political motivation for reform, and events in the five years following the reform. The reform yielded mixed results. Although cellular penetration and Internet use expanded dramatically following reform, prices increased, especially for cellular calls, and fixed-line penetration remains low by regional standards. This paper is part of a larger six-country research program that looks at telecommunications reform throughout Sub-Saharan Africa.

https://elibrary.worldbank.org/doi/pdf/10.1596/1813-9450-3036

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