• Operators accepted to lower Internet tariffs starting this week after government pressure and threat of sanctions.

• Government signals openness to a 215 billion ariary ($48 million) tax relief, provided it does not hurt the state budget.

• Malagasy consumers currently spend 6.28% of GNI per capita on mobile Internet—three times above the ITU affordability benchmark.

Madagascar’s telecom operators agreed to reduce Internet prices starting this week after a protracted standoff with authorities, the Ministry of Digital Development, Posts and Telecommunications said in a statement on December 1.

Minister Mahefa Andriamampiadana said each operator will determine the scope of its price reduction based on its technical and economic capacity. He added that the country should abandon the gigabyte-only pricing model for fixed broadband because it penalizes low-usage customers. He urged operators to move toward tariffs based on connection quality, speed and stability, in line with global practice.

The government and operators also reached common ground on the industry’s demand for a 215 billion ariary tax relief. The government, which had previously rejected the request, now says it does not oppose it as long as the measure does not affect the state budget. Operators have already pledged to pay 400 billion ariary in taxes in 2026.

The ministry said operators must reinvest any savings generated by the tax measure to improve service quality, expand network investment and offer more affordable tariffs.

The government has pushed for months to lower consumer Internet costs, intensifying pressure on operators last week amid social-media criticism targeting the three dominant players—Yas, Airtel and Orange.

According to the International Telecommunication Union, Malagasy consumers spent 6.28% of GNI per capita on mobile Internet in 2023—well above the organization’s 2% affordability threshold. While this represents a sharp decline from 52% in 2014, the ratio remains higher than Africa’s average of 4.48% and the global average of 1.24%. DataReportal estimates Madagascar had 6.6 million Internet users at the start of the year, a penetration rate of 20.4%.

This article was initially published in French by Isaac K.Kassouwi

Adapted in English by Ange Jason Quenum