Madagascar’s government and its major telecom operators are engaged in a tense standoff over efforts to lower internet prices.
The operators are demanding the removal of several taxes totalling approximately 215 billion ariary, but the government has refused to concede, insisting on negotiations and warning of potential sanctions if the operators do not compromise.
Mahefa Andriamampiadana, Madagascar’s Minister of Digital Development, Posts, and Telecommunications, detailed the taxes targeted by the operators, which include excise duties, taxes on mobile transactions, and levies on phones costing less than $100. These taxes are estimated to account for just over 11% of the sector’s total revenue, or roughly 1,938 billion ariary in 2024. The government maintains that eliminating these taxes would have significant repercussions on the national budget, particularly affecting allocations for education and health sectors. Yuri Garise Razafindrakoto, Secretary General of the Ministry of Economy and Finance, explained that the draft law concerning tax removal is already under review and awaiting approval, making it impossible to incorporate any new provisions without risking financial shortfalls that cannot be offset by anticipated expenditures.
On social media, voices have been calling for a reduction in internet prices, targeting the country’s three main telecom providers — Yas, Airtel, and Orange. The Telecommunications Regulatory Authority (ARTEC) responded by urging operators to explore options for adjusting rates to benefit consumers, following a wave of complaints about high mobile internet costs. ARTEC indicated that this initiative builds on actions taken since late 2024, including an initial tariff adjustment and a joint government-operator effort announced in October 2024 to reduce telecom service prices. In April 2024, authorities introduced a minimum price per gigabyte, which was raised from $0.45 to $0.95, but this was revoked in May amid claims that operator pricing was still artificially high and not reflective of negotiated commitments.
While Malagasy telecom companies have yet to issue official statements, the government is determined to continue negotiations until a compromise is reached. If talks fail, authorities plan to enforce measures as stipulated by law. Minister of Communication and Culture Ogascar Fenosoa Mandrindrarivony revealed plans to open the market to increased competition, citing the example of Starlink, the American satellite internet provider, which has already entered the market. He called on both domestic and foreign operators to prepare for this eventuality.
Data from the International Telecommunication Union shows that in 2023, the average monthly expenditure on mobile internet in Madagascar was 6.28% of gross national income per capita — down from 52% in 2014 — but still three times higher than the 2% affordability threshold set by the organisation. Across Africa, the ratio stands at 4.48%, and globally at 1.24%. As of early 2024, the country had approximately 6.6 million internet users, accounting for a penetration rate of 20.4%, according to DataReportal.
