Complete our one minute customer care survey

Tanzania - Telecoms, Mobile, Broadband and Forecasts

Executive summary

Mobile broadband gains traction with operator investment

This annual report provides a comprehensive overview of trends and developments in Tanzania’s telecommunications market. Subjects covered include:

  • Key statistics;
  • Market and industry overviews;
  • Government policies affecting the telecoms industry;
  • Market liberalisation and regulatory issues;
  • Telecoms operators – privatisation, acquisitions, new licences;
  • Major players (fixed, mobile and broadband);
  • Infrastructure development;
  • Mobile voice and data markets, including 3G;
  • Internet development and pricing;
  • Broadband, including 3G mobile;
  • Convergence (voice/data, fixed/wireless/mobile).
  • Average Revenue per User (ARPU).

Tanzania’s economy has been showing solid growth rates of between 5% and 8% every year since 2000, despite the global economic crisis which has affected many economies since 2008. For the period 2013-2017, the International Monetary Fund predicts stable GDP growth at around 7% per annum.

The government has actively embraced the principles of competition and a private sector including foreign participation as a means of rapidly advancing economic and social development. Policy reforms have led to the telecom sector becoming among the most liberal in Africa. However, high import tariffs on telecoms equipment and taxes on telephone facilities by various authorities are still placing a burden on investors and operators.

Tanzania has two fixed-line operators (TTCL and Zantel) and eight operational mobile networks, with four additional players licensed under a new converged regulatory regime. With four major operators – Vodacom, Bharti Airtel (formerly Zain), Tigo and Zantel – mobile penetration is approaching 70%, with annual subscriber growth of more than 20%. In recent years a price war among these players has adversely affected the smaller operators, which have suffered from customer churn.

The new converged licensing regime has brought a large number of new players into the market. The liberalisation of voice over internet protocol (VoIP) telephony as well as the introduction of third and fourth generation (3G, 4G) mobile services and wireless broadband networks is boosting the internet sector which has been hampered by the low level of development of the traditional fixed-line network.

Following the launch of 3G mobile broadband services, the mobile networks are becoming the country’s leading internet service providers on the back of their extensive national infrastructure and existing subscriber bases in the voice market. Operators are hoping for revenue growth in the mobile data services market, given that the voice market is almost entirely prepaid and voice ARPU continues to fall. To this end they have invested in network upgrades, with both Vodacom and Smile Communications developing services based on Long-term Evolution (LTE) technology. A fast developing source of revenue is from mobile money transfer and m-banking services. In mid-2013 Bharti Airtel estimated that in Tanzania over 10% of GDP is transacted through mobile commerce.

In March 2013 the regulator reduced interconnection rates by 70%. Combined with a stringent registration policy, requiring new customers to have a physical ID, the reduced rates dampened growth in the number of mobile subscribers for some operators.

The landing of the first fibre optic international submarine cables in the country in recent years has revolutionised the market which up to that point completely depended on expensive satellite connections. In parallel, the government has switched on the first phase of a national fibre backbone network to connect population centres around the country. However, the cost of international internet bandwidth has so far not come down by as much and not as quickly as expected.

Market highlights:

  • Price wars continue to hurt smaller operators;
  • Low ARPU is encouraging mobile operators to develop mobile data and commerce services;
  • Consolidation likely among licensed mobile operators and ISPs;
  • Regulator sets voice interconnection rates to 2017;
  • Government allocates TZS17.5 billion (US$10.8 million) to improve rural telecom infrastructure;
  • Smile Communications trials VoLTE services;
  • Government reviews ICT policy, considers measures to tackle cybercrime;
  • TTCL opens a new microwave link connecting Dar es Salaam and Zanzibar, doubling data capacity;
  • Telecommunication Traffic Monitoring System delivering about $1 million in incoming international call taxes monthly;
  • Forecast for mobile market to 2014 and 2017.

Estimated market penetration rates in Tanzania’s telecoms sector – end-2013

Market
Penetration rate
Mobile
75%
Fixed
0.4%
Internet
14%

(Source: BuddeComm based on various sources)

Key developments:

Despite two years of delays, the regulator affirms that MNP may be introduced later in 2014; Helios Towers launches In-Building Solutions (IBS) to provide network coverage in tall buildings; Thuraya signs deal with Bharti Airtel to provide mobile satellite services; government funds rural telecom infrastructure; Smile Communications trials VoLTE services; m-commerce and m-banking developments; Tigo integrates M-Pesa service with 17 major banks; report includes the regulator’s market data to December 2013; interconnection rates update; telcos’ operating and financial data to Q4 2013; market developments to April 2014.

Companies covered in this report:

Tanzania Telecommunications Company (TTCL); Zanzibar Telecommunications Corporation (Zantel); Vodacom Tanzania; Bharti Airtel (Zain); Millicom (Tigo); Benson Informatics Limited (BOL); Sasatel (Dovetel); Africa Online; Raha.com; Tele2; Alink; SatCom Networks; SimbaNet; Afsat; Cats-Net.

Henry Lancaster

April 2014

Table of Contents

  • 1. Executive summary
  • 2. Key statistics
  • 3. Telecommunications market
    • 3.1 Overview of Tanzania’s telecom market
  • 4. Regulatory environment
    • 4.1 Background
    • 4.2 Regulatory authority
      • 4.2.1 TCRA
    • 4.3 National Telecommunications Policy 1997
    • 4.4 National ICT Policy 2003
    • 4.5 Regulatory overhaul 2005
    • 4.6 Electronic and Postal Communication Act 2010
    • 4.7 Telecom sector liberalisation
      • 4.7.1 Converged licensing framework (CLF) since 2005
      • 4.7.2 International gateways
    • 4.8 Interconnection
    • 4.9 Universal Service Fund
    • 4.10 Foreign ownership restrictions
    • 4.11 Registration of subscriber details
    • 4.12 Mobile Number Portability (MNP)
  • 5. Fixed network operators
    • 5.1 TTCL
      • 5.1.1 Privatisation and exclusivity period 2000-2005
      • 5.1.2 SaskTel management contract 2007-2009
      • 5.1.3 Future direction
    • 5.2 Zantel
    • 5.3 BOL
  • 6. Fixed-line infrastructure
    • 6.1 Fixed-line statistics
    • 6.2 TTCL’s fixed-line network
    • 6.3 Wireless local loop (WLL)
    • 6.4 Private networks
    • 6.5 National fibre backbone
    • 6.6 International infrastructure
      • 6.6.1 Submarine fibre
      • 6.6.2 Satellite
      • 6.6.3 Terrestrial
  • 7. Internet market
    • 7.1 Overview
      • 7.1.1 Internet statistics
    • 7.2 Limited availability of PCs
    • 7.3 Public internet access locations
    • 7.4 Tanzania’s ISP market
      • 7.4.1 Major ISPs
      • 7.4.2 Tanzania Internet Exchange (TIX, AIXP)
    • 7.5 ccTLD management
  • 8. Broadband market
    • 8.1 Overview
    • 8.2 ADSL
    • 8.3 Wireless broadband
      • 8.3.1 iBurst
      • 8.3.2 EV-DO
      • 8.3.3 WiMAX
  • 9. Digital economy
    • 9.1 Voice over Internet Protocol telephony
    • 9.2 E-health
    • 9.3 E-learning
    • 9.4 Facebook
  • 10. Mobile communications
    • 10.1 Overview of Tanzania’s mobile market
      • 10.1.1 Mobile statistics
      • 10.1.2 Tower infrastructure
    • 10.2 Major mobile operators
      • 10.2.1 TTCL
      • 10.2.2 Vodacom Tanzania
      • 10.2.3 Bharti Airtel (formerly Zain, Celtel)
      • 10.2.4 Millicom Tanzania (Mobitel, Tigo)
      • 10.2.5 Zantel
    • 10.3 Tariffs
      • 10.3.1 Special regional tariffs
      • 10.3.2 Free international roaming
      • 10.3.3 Price war 2010
      • 10.3.4 Mobile Termination Rates (MTRs)
      • 10.3.5 Mobile Number Portability (MNP)
    • 10.4 Mobile data services and pricing
      • 10.4.1 Third Generation (3G)
      • 10.4.2 Long-term Evolution) (LTE)
      • 10.4.3 Blackberry
      • 10.4.4 Mobile money transfer, m-banking
      • 10.4.5 Mobile TV
      • 10.4.6 Mobile satellite services
  • 11. Forecasts
    • 11.1 Forecasts – mobile market – 2014, 2017
    • 11.2 Notes on scenario forecasts
  • 12. Related reports
  • Table 1 – Country statistics Tanzania – 2013
  • Table 2 – Fixed-line network statistics – 2013
  • Table 3 – Internet provider statistics – 2013
  • Table 4 – Internet user statistics – 2013
  • Table 5 – Mobile statistics – 2013
  • Table 6 – National telecommunications authority
  • Table 7 – Interconnection rates – 2012- 2017
  • Table 8 – Historic - Fixed lines in service by operator and teledensity – 1999 - 2004
  • Table 9 – Fixed lines in service by operator and teledensity – 2005 - 2013
  • Table 10 – Historic - Internet users and penetration rate – 1999 - 2004
  • Table 11 – Internet users and penetration rate – 2005 - 2014
  • Table 12 – Internet users and penetration rate – 2005 – 2014
  • Table 13 – Internet subscribers – 2008 - 2014
  • Table 14 – Historic - Mobile subscribers and penetration rate – 1995 - 2004
  • Table 15 – Mobile subscribers and penetration rate – 2005 - 2015
  • Table 16 – Mobile voice subscribers by operator – 2011 - 2013
  • Table 17 – Mobile voice subscriber market share by operator – 2011 - 2013
  • Table 18 – Mobile subscriber market share by operator – 2012 - 2013
  • Table 19 – TTCL mobile subscribers – 2006 - 2013
  • Table 20 – Vodacom Tanzania subscribers – 2000 - 2013
  • Table 21 – Vodacom Tanzania active subscribers – 2011 - 2013
  • Table 22 – Vodacom Tanzania ARPU ($) – 2003 - 2013
  • Table 23 – Vodacom Tanzania ARPU (TZS) – 2011 - 2013
  • Table 24 – Airtel subscribers – 2002 - 2013
  • Table 25 – Zain Tanzania ARPU – 2002 - 2009
  • Table 26 – Millicom Tanzania mobile subscribers – 2000 - 2013
  • Table 27 – Zantel mobile subscribers – 2000 - 2013
  • Table 28 – Average mobile tariffs – 2005 - 2013
  • Table 29 – Forecast mobile subscribers – 2014; 2017
  • Chart 1 – Mobile subscribers in Tanzania – 2005 - 2015
  • Exhibit 1 – Licences issued under the new CLF – 2006 - 2012
  • Exhibit 2 – Emergency rescue scheme for Lake Victoria

Focus Report profile

Single-User PDF Licence: US$490.00EX GST
Member Discounts Apply
Purchase
License Information

Your Cart

Your Cart is empty

Purchase with Confidence

"We wanted to extend our Com World Series of telecoms industry events to the South Pacific region and we were in urgent need of a partner in the region who could assist us with confirming the involvement of governments, telcos and more. Paul Budde and his team executed this perfectly. Paul also provided us with very high quality reports on every aspect of the project, including an amazingly thorough and actionable report on the conference presentations and discussion."

Joe Willcox, Commercial Content Director, Emap Connect, Emap

» More from our customers..

Special Offers

More than 4,000 customers from 140 countries utilise BuddeComm Research

Are you interested in BuddeComm's Consulting Services ?

Quick Search

News & Views

Have the latest telecommunications industry news delivered to your inbox by subscribing to Paul's FREE weekly News & Views.

Contact us

Email     pbc@budde.com.au

Copyright © 2014 Paul Budde Communication Pty Ltd. All rights reserved. All trademarks and copyrights are the property of their respective holders. Design by Arcaeda | Hosted by Ipera