1. INTRODUCTION 1.1. Background Major reforms in the ICT Sector of Malawi go as far back as the 1990s with the advent of sector liberalisation through the separation and commercialisation of the then incumbent Telecommunications operator, Malawi Posts and Telecommunications Corporation (MPTC) into the Malawi Telecommunications Limited (MTL) and Malawi Posts Corporation (MPC). Subsequent major reforms include the implementation of the Communications Sector Policy (1998) and the Communications Act (1998) that led to the establishment of the Malawi Communications Regulatory Authority (MACRA). Due to advances in technology over the years, the Communications Act (1998) was reviewed in 2016 and also the Electronic Transactions and Cyber Security Act (2016) were enacted. These are the two current legislations for the sector. Currently, the mobile penetration rate in Malawi is quite low in comparison to the average African penetration rates, highlighting the tremendous potential for further growth in Malawi. Currently, the mobile penetration rate is at 45 percent compared to the African region average of 77.8 percent. The broadband access prices in Malawi are among the highest in the region due to high cost and limited availability of international bandwidth. However, the internet sector has about 50 licensed ISPs out of which only 20% are active. The mobile penetration and broadband are expected to grow exponentially over the next couple of years. Since, the current mobile market in Malawi is a duopoly, the Government of Malawi has introduced a converged licensing regime in an effort to encourage further market competition and growth. It is expected that the converged licensing regimes will introduce new entrants into the sector and enhance competition resulting in lower prices. In addition, service providers in Malawi have launched 3G services, invested in LTE infrastructure or continued to extend their WIMAX wireless broadband networks. Furthermore, Malawi gained access to international submarine cables recently following the completion of a transit link via neighbouring countries and is currently deploying a national fibre backbone. As a result of these recent developments within the sector, as well as the high potential for further rapid proliferation of ICTs within Malawi, it is evident that Malawians will increasingly get connected to the Internet and use ICTs overtime. This increased connectivity and use of ICT’s come with increased threats to activities of businesses and people in Malawi. If Malawi is to fully leverage ICTs to spur socio-economic development of the nation, it has to be ready and capable of addressing these threats. 1

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