Government says it will invite a serious third mobile operator after accusing licensed companies of warehousing spectrum, failing to roll out services and then suing the state when their licences are revoked.

NEWS | Telecommunications | Edwin Mauluka

Telecommunication companies that obtained licences but failed to launch services before suing the government for damages after their licences were revoked must explain themselves to Malawians, Minister of Information, Technology and Digitalisation Shadreck Namalomba has said.

Speaking in Parliament on Friday, Namalomba said the government would soon begin licensing additional mobile network operators to boost competition and improve the affordability of digital services.

His remarks came in response to a supplementary question from Rumphi Central MP Mathews Mtumbuka, who asked what strategy the government had to attract a credible third mobile operator into a market dominated by Airtel Malawi plc and Telekom Networks Malawi (TNM) plc.

Namalomba said the Malawi Communications Regulatory Authority (MACRA) had over the years issued licences to new mobile operators in a bid to increase competition, but many never launched services.

“We have been let down because when we license them, they don’t roll out. They get the licence and hold on to it. When you have that licence, you also have the spectrum. When we move to terminate the licence, they rush to court claiming damages,” he said.

He argued that the practice had undermined government efforts to open up the telecommunications sector.

“Parliament, through its various committees, should begin calling these companies to account because they are suing the government and demanding damages over something they themselves caused,” Namalomba said.

The minister said President Peter Mutharika had authorised the ministry to begin the search for a serious third mobile operator.

“If serious mobile operators are out there, this is the time. We will soon advertise for new entrants. We want operators that are ready to invest so we can improve competition in the market,” he said.

He added that had previous licence holders rolled out their networks as promised, Malawi would not still be searching for another operator.

Namalomba, however, acknowledged that existing operators face significant challenges in improving network quality because of the country’s foreign exchange shortage.

“The operators tell us they have the money but cannot procure equipment because there is no forex. That is the main reason they are failing to upgrade their systems,” he said.

He also linked the recent increase in mobile tariffs to broader economic pressures, including rising fuel costs.

Mtumbuka said his question was prompted by widespread public concern over soaring internet bundle prices and persistent service quality problems.

He argued that introducing a competitive third operator would help drive down prices.

“The people of Rumphi Central are complaining about the high cost of telecommunications services. Economics tells us that a strong third operator would increase competition and put downward pressure on prices,” he said.

Mtumbuka suggested Malawi should target established regional operators such as Vodafone, Vodacom, Orange and MTN to strengthen competition and improve consumer choice.

He noted that Malawi has not attracted a new mobile operator since 1999, despite the market more than doubling in size.

“The population has grown from about 10 million to around 23 million people. The market has expanded significantly and mobile services are far more accessible than they were then,” he said.

Mtumbuka added that infrastructure-sharing arrangements now make it easier for new entrants to establish operations.

He pointed to Helios Towers, whose infrastructure is shared by multiple operators, saying a new entrant would not need to build an entirely new network of towers.

Malawi’s mobile telecommunications market is currently dominated by Airtel Malawi plc and Telekom Networks Malawi (TNM) plc. Other licensed operators include Malawi Telecommunications Limited (MTL), which primarily provides fixed-line and data services, and Access Communications Limited (Zero2), whose mobile network has limited coverage in major urban centres.

MACRA previously issued mobile operating licences to Malcel and Nyasa Mobile, but neither company launched commercial operations.

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