Malawi seeks new telecom competition

Shadric Namalomba, Malawi's minister of ICT.
Shadric Namalomba, Malawi's minister of ICT.

Malawi is considering licensing additional mobile network operators to increase competition and improve the affordability of digital services, says Information and Communication Technology minister Shadric Namalomba.

The proposal comes as consumers continue to raise concerns over rising internet tariffs and service quality issues affecting the country’s two dominant operators, Airtel Malawi and Telekom Networks Malawi (TNM).

Namalomba made the proposal while responding to Lilongwe Msinja South Constituency Member of Parliament Francis Belekanyama during a recent parliamentary session held after the controversial increase in tariffs by the two operators.

Last Friday, the Malawi Communications Regulatory Authority ordered Airtel Malawi and TNM to compensate customers affected by revised tariffs implemented before the operators had met the required seven-day publication notice period.

The regulator said the premature application of the new data tariffs, between 26 June and 2 July, was among the breaches committed by the operators.

Airtel Malawi and TNM have previously faced public criticism over dropped calls, slow internet speeds and unreliable network connectivity. The government has responded by imposing fines on operators found to be in breach of regulations.

The introduction of additional operators is intended to reduce Airtel and TNM’s combined market dominance and encourage more competitive pricing.

“The government has taken steps to reduce the cost of digital services,” Namalomba said during his parliamentary response.

He cited measures including a 50% reduction in spectrum licence fees and support from the $150 million Digital Malawi Acceleration Project, which aims to expand mobile tower infrastructure, particularly in underserved areas.

Plans to introduce additional operators have faced delays, with the licensing of Malcel as Malawi’s third major mobile operator yet to result in a commercial launch.

Malcel initially targeted a commercial launch in late 2023, but macroeconomic challenges delayed the rollout. The company has not announced a new launch date.

Nyasa Mobile, which received a licence in 2022, has also experienced operational delays linked to economic challenges and has not announced a commercial launch date.

Access Communications, which received its licence in 2007, has failed to significantly challenge Airtel Malawi and TNM’s dominance. 

Operating under the Zero2 brand, it has captured a small number of Malawi’s mobile subscriber market and is available mainly in major cities.

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