While 3G and 4G networks cover over 80% of the population, their usage remains limited. Mobile operators point to the high cost of smartphones as a primary barrier.
A significant gap persists between mobile network coverage and actual Internet usage in the Great Island. In a report presented yesterday in Alarobia, the GSMA, the global association of mobile operators, outlined the state of the digital economy in Madagascar. According to the study, 3G and 4G networks covered 81% of the population in 2026, though one-third of the rural population remained beyond the reach of 4G. The ‘usage gap’—referring to people covered by mobile broadband but not using it—affected 66% of the population.
Although the mobile telephony market has seen strong growth, with total connections rising from 12.3 million in 2021 to 22.5 million in 2025, mobile Internet usage remains low. ‘In 2025, the penetration rate of unique mobile subscribers reached 44.6% of the population, and 14.3% used mobile Internet, meaning about one-third of mobile subscribers used the Internet,’ the GSMA stated.
Mobile operator executives highlighted several barriers to Internet access. ‘It is primarily a problem of digital terminals. In other words, smartphones, even entry-level ones, are expensive and subject to heavy taxation. 47% of the final price of a smartphone consists of taxes,’ stated Benoît Janin, General Manager of Yas Madagascar.
This view is shared by other operators, including Orange Madagascar and Airtel, represented at the Novotel Alarobia. ‘The cost of equipment required to access the Internet is prohibitive. To democratize the Internet, it is necessary to review smartphone taxation—not necessarily for the most expensive ones, but for those accessible to everyone,’ emphasized Anne Catherine Tchokonté, General Manager of Airtel.
Debates regarding partial or total tax exemptions for digital terminals are not new. Although operators have advocated for tax relief, this year’s supplementary finance law maintains taxes on this equipment. The text notes a 47% tax burden on smartphones: 20% customs duties, 20% VAT, 6% for the Universal Service Fund (FSU) and connectivity, and 1% for regulation. Operators are calling for the removal of these taxes and a strategy to broaden the tax base.
The GSMA estimates that digital reforms could connect an additional 1.12 million people in Madagascar and add 4.1 trillion Ariary to the GDP by 2031.
Captured & Published at: 2026-10-17 05:54:14 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/10/technologie-deux-malgaches-sur-dix.html
