The development of data processing firms was included in the EPZ success from the beginning of the nineties: firms specialized in data-processing or subcontracting data-processing work. This sector, between 1998 and 2000, experienced a growth rate in export of about 30% (US $ 4 million turnover in 1999). In 2001, 65 firms were operational all over Madagascar among which 16 were operating under the EPZ regime. They crated 3 000 jobs in Antananarivo alone.
The telecommunication system has been Significantly modernized. All the major cities are served by automatic exchanges and all international communications are automatic. The national telecommunication company TELMA going through a process of privatisation Competition in this sector has become Increasingly important since the establishment of many mobile phone networks. Regarding the phone subscription in 2001, one counted approximately 50.000 subscribers. 3 private mobile companies share the market of the mobile telephony (Intercel, Madacom, Orange) which one counted approximately 150.000 subscribers in 2001. Several companies ensure the Internet service supply. One counts more than 10.000 subscribers to Internet. The cyberspaces grow in Antananarivo and open gradually in provinces, all that generates a sales turnover of 100 million US dollars
Currently, there are 11 companies working in networks, 11 service providers and approximately 70 suppliers of terminal equipments.
Sector opportunities and potentialities:
-The necessary investments are not heavy financially
-The local labor profits from a good training given by the existing of a University specialized in Computer Sciences.
-The small training centres in software are numerous.
-The activity lends itself to the Export Processing Zone Company in Technology (EFI) and profiting from incentive measurements.
-The labour cost makes Madagascar a competitive contractor