Fifth Annual African Consumer Protection Dialogue Conference

1. Fifth Annual African Consumer Protection Dialogue Conference Mobile and Cyber Threat Issues Competition and Fair Trading Commission, Malawi Livingstone, Zambia 10-12 September, 2013

2. Presentation Outline • Background statistics to the mobile market in Malawi • Current mobile issues in Malawi • Current cybersecurity issues and countermeasures

3. Background Statistics • Malawi has 2 operational mobile service operators (Airtel and TNM), 2 fixed line service operators (MTL and ACL) and 12 Internet Service Providers. • Slightly over 33.2% of people in Malawi subscribe to the 2 mobile operators ( i.e. a mobile density of over 33.2%). Almost 90% of the population is covered by a mobile signal. • Fixed line penetration is at 1.36%, with a total teledensity (fixed and mobile) of slightly over 34.6%. • The percentage of fixed telephone lines is 45.41% for rural areas and 54.59% for urban areas.

4. Background…………. • Only 630,000 Malawians subscribe to internet representing an internet penetration of 4.5%. • Only 0.5% of the population live within localities of Public Internet Access Point (PIAC). • 0.1311 of international internet bandwidth per inhabitant with 18.11% internet access tariffs (20 hours/month), in US$, and as a percentage of per capita income.

5. Background………. • There is also a surge in number of Malawians using mobile phones for banking and making payments as well as general internet usage on mobile phones in light of the emergence of the social media i.e. facebook, twitter, skype… • Detailed study yet to be made to determine the actual figures

6. Current mobile phone and internet issues • Unsatisfactory quality of mobile services. These are measured, among others, in terms of: • Call Failure Rates (>6% which is a KPI for long distance calls • Fault Clearance Rate (measure of speed at which network faults are cleared against the prescribed targets in order to reduce network outage, KPI=80% • Connection rate (KPI=90%) • Improvements are, however, being registered as a result of strict monitoring

7. Issues…………. • Limited number of mobile service operators; a scenario which limits consumers’ choice and competition in the mobile communication sector • High rates of tariffs beyond the average income of consumers to sustain the services. This is partly attributed to the current duopolistic nature of the mobile service sector • Low mobile density

8. Issues………….. • Low internet penetration hence restricted access to internet services by consumers • Low percentage of people within localities of Public Internet Access Point (PIAC) • High internet subscription costs [e.g. fixed (wired) broadband (256kbps) internet monthly subscription of US$388.43 per months] against low per capita income. This eventually limits consumer access to the services

9. Cybersecurity Issues and Countermeasures • Threats • Escalation of viruses and spam • Expensive antivirus software hence limiting access • Use of inappropriate softwares due to lack of options • Use of inappropriate softwares due to inadequate knowledge by consumers.

10. Cybersecurity issues………… • Countermeasures • Cybersecurity policy and legislation already drafted; waiting to be passed by Parliament • Government participating in the Regional Communications Infrastructure Programme, Malawi Project (RCIPMW) that will substantially reduce internet costs hence expand coverage to the citizens • Government establishing telecentres across the country to reach to many consumers

11. THANK YOU