Telma’s CEO Patrick Pisal Hamida told the press in Madagascar that the operator signed a USD 100 million contract with Ericsson in July, covering the 2019-2023 period. As reported by Agence Ecofin, the deal will enable Telma to upgrade its core network and RAN to increase capacity and provide customer with faster mobile connectivity. Ericsson will also support network expansion, with 2,000 new cell sites planned, as well as the roll-out of 4.5G services and eventually 5G in high-density population areas.
In related news, Telma’s CEO expressed his opposition towards reforms introduced by the government earlier this year with the aim to lower fibre-based broadband prices. With the new measures, Telma’s rivals can install and deploy their own fibre-optic links where existing infrastructure is already present. Describing the move as a ‘false good idea’, Patrick Pisal Hamida argued that lower prices could instead be achieved with a reduction in the excise duty.
He said that telecom services in Madagascar are subject to 20 percent VAT and 8 percent excise duty. Telma would be prepared to cut the price of fibre optic by 10 percent for every 1 percent reduction in excise duty, calling on the government to go as far as a 5 percent reduction to enable a 50 percent cut in fibre prices.
