Tanzania - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

Executive summary

Tanzanian government acquires full ownership of TTCL

The government has actively embraced competition in the telecom market, and has encouraged the private sector. Foreign participation has also been encouraged to promote economic growth 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 has broached 80%. In recent years a price war among these players has adversely affected the smaller operators, which have suffered from customer churn.

The 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 and LTE mobile broadband services, the mobile networks have become the leading internet service providers. 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. A fast developing source of revenue is from mobile money transfer and m-banking services.

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 entirely 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.

The government has become more determined to manage the telecom sector more effectively. It has cracked down on counterfeit smartphones, which were thought to account for up to 30% of devices in circulation at the start of the campaign, while in early 2016 the telecom regulator’s board was dismissed after it had failed to update the Telecommunications Traffic Monitoring System (TTMS). This system was expected to deliver up to TZS400 billion to the government annually. In late 2016 a new tax collection system was launched to help generate revenue from telecom services.

The government in September completed a long-term process to reacquire TTCL, buying out the 35% stake owned by Bharti Airtel.

Market penetration rates in Tanzania’s telecoms sector – 2015 (e)

Market Penetration rate
Fixed-line telephony 0.3%
Internet users 34%
Mobile SIM (population) 81%

(Source: BuddeComm)

Key developments:

  • TTCL enters m-money market;
  • Tigo extends mobile app for birth registrations;
  • TTCL launches LTE-A service;
  • Government sets up Telecommunications Revenue Assurance System (TRASS) to improve telecom tax raising ability;
  • Telecom regulator fines mobile operators for failing to register SIM cards;
  • Vodacom Tanzania updated M-Pesa service with its G2 platform;
  • Government regains full ownership of TTCL;
  • Smile launches VoLTE services;
  • ISP UhuruOne piggybacking on Tigo’s LTE network;
  • Tanzanian MNOs achieve full m-money interoperability;
  • Tigo secures stake in Helios Towers;
  • Regulator planning multi-spectrum auction to boost mobile broadband use and develop an emergency service mobile network;
  • Smile Communications contracts Ericsson to manage LTE infrastructure;
  • Government signs MoU for final phase of the national backbone network;
  • Phase 2B USF contracts awarded;
  • Government agrees to buy back a 35% stake in TTCL from Bharti Airtel, for TZS14.6 billion;
  • Millicom acquires Etisalat’s 85% stake in Zantel;
  • Low ARPU encouraging mobile operators to develop mobile data and commerce services;
  • Regulator sets voice interconnection rates to 2017;
  • Government allocates TZS17.5 billion ($10.8 million) to improve rural telecom infrastructure;
  • Smile Communications trials VoLTE services;
  • Government cracks down on counterfeit smartphones;
  • TTCL opens a new microwave link connecting Dar es Salaam and Zanzibar, doubling data capacity;
  • Telecom regulator’s board dismissed;
  • Report update includes regulator’s market data to June 2016, operator data to Q3 2016, recent market developments.

Companies mentioned 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.

Table of Contents

  • 1. Executive summary
  • 2. Key statistics
  • 3. Country overview
  • 4. Telecommunications market
    • 4.1 Market analysis
  • 5. Regulatory environment
    • 5.1 Regulatory authority
    • 5.2 National Telecommunications Policy 1997
    • 5.3 National ICT Policy
    • 5.4 Regulatory overhaul
    • 5.5 Electronic and Postal Communication Act 2010
    • 5.6 Telecom sector liberalisation
      • 5.6.1 Converged licensing framework (CLF)
      • 5.6.2 International gateways
    • 5.7 Interconnection
    • 5.8 Universal Communication Services Access Fund (UCSAF)
    • 5.9 Foreign ownership restrictions
    • 5.10 SIM card registration
    • 5.11 Mobile Number Portability (MNP)
    • 5.12 Voice over Internet Protocol (VoIP)
  • 6. Fixed network operators
    • 6.1 TTCL
      • 6.1.1 Privatisation and exclusivity period 2000-2005
      • 6.1.2 SaskTel management contract 2007-2009
      • 6.1.3 Future direction
      • 6.1.4 Ownership changes
    • 6.2 Zantel
    • 6.3 BOL (Smart)
  • 7. Telecommunications infrastructure
    • 7.1 TTCL’s fixed-line network
    • 7.2 Wireless local loop (WLL)
    • 7.3 Private networks
    • 7.4 National fibre backbone
  • 8. International infrastructure
    • 8.1 Submarine fibre
    • 8.2 Satellite
    • 8.3 Terrestrial
  • 9. Broadband market
    • 9.1 Introduction and statistical overview
      • 9.1.1 Market analysis
      • 9.1.2 Broadband statistics
      • 9.1.3 Public internet access locations
      • 9.1.4 ISP market
      • 9.1.5 Tanzania Internet Exchange (TIX, AIXP)
      • 9.1.6 ccTLD management
    • 9.2 Broadband infrastructure
      • 9.2.1 Hybrid Fibre Coax (HFC) networks
      • 9.2.2 Digital Subscriber Line (DSL) Networks
      • 9.2.3 EV-DO
      • 9.2.4 Fixed wireless (WiMAX, WiBro, Wi-Fi)
      • 9.2.5 Satellite broadband
  • 10. Digital economy
    • 10.1 E-health
    • 10.2 E-learning
    • 10.3 Facebook
  • 11. Digital media
    • 11.1 Digital TV developments
  • 12. Mobile market
    • 12.1 Market analysis
    • 12.2 Mobile statistics
      • 12.2.1 Mobile data services
      • 12.2.2 Mobile broadband
      • 12.2.3 Forecasts – mobile subscribers – 2016; 2018; 2021
    • 12.3 Regulatory issues
      • 12.3.1 Mobile Number Portability (MNP)
      • 12.3.2 Quality of Service
      • 12.3.3 Spectrum auctions
      • 12.3.4 Tariffs
      • 12.3.5 International roaming
      • 12.3.6 Mobile Termination Rates (MTRs)
      • 12.3.7 Network sharing
    • 12.4 Mobile infrastructure
      • 12.4.1 Digital networks
    • 12.5 Other infrastructure developments
      • 12.5.1 Mobile satellite services
      • 12.5.2 Tower infrastructure
      • 12.5.3 Voice-over-LTE (VoLTE)
    • 12.6 Major mobile operators
      • 12.6.1 TTCL
      • 12.6.2 Vodacom Tanzania
      • 12.6.3 Bharti Airtel (formerly Zain, Celtel)
      • 12.6.4 Millicom Tanzania (Mobitel, Tigo)
      • 12.6.5 Zanzibar Telecommunication (Zantel)
      • 12.6.6 Viettel
      • 12.6.7 Mobile Virtual network Operators (MVNOs)
    • 12.7 Mobile content and applications
      • 12.7.1 Money transfer, m-banking
      • 12.7.2 Mobile TV
      • 12.7.3 M-health
    • 12.8 Handsets
  • 13. Related reports
  • Table 1 – Country statistics Tanzania – 2016 (e)
  • Table 2 – Fixed-line network statistics – 2015
  • Table 3 – Internet provider statistics – 2015
  • Table 4 – Internet user statistics – 2015
  • Table 5 – Mobile statistics – 2016 (Mar)
  • Table 6 – National telecommunications authority
  • Table 7 – Interconnection rates – 2012- 2017
  • Table 8 – TTCL financial data – 2010; 2012 - 2014
  • Table 9 – Historic - Fixed lines in service by operator and teledensity – 1999 - 2009
  • Table 10 – Fixed lines in service by operator and teledensity – 2010 - 2017
  • Table 11 – TTCL fixed lines in service – 2010- 2016
  • Table 12 – Fixed lines in service – 1995 - 2016
  • Table 13 – International bandwidth – 2001 - 2015
  • Table 14 – Historic - Internet users and penetration rate – 1999 - 2009
  • Table 15 – Internet users and penetration rate – 2010 - 2017
  • Table 16 – Internet users and penetration rate – 2005 – 2017
  • Table 17 – Historic - Fixed-line internet subscribers – 2001 - 2017
  • Table 18 – Fixed-line broadband subscribers – 2005 - 2017
  • Table 19 – Internet cafes in service – 2008 - 2014
  • Table 20 – Cable modem broadband subscribers – 2005 - 2016
  • Table 21 – Fixed wireless internet subscribers – 2011 - 2017
  • Table 22 – Pay TV subscribers by platform – 2010 - 2014
  • Table 23 – Historic - Mobile subscribers and penetration rate – 1995 - 2009
  • Table 24 – Mobile subscribers and penetration rate – 2010 - 2016
  • Table 25 – Mobile voice subscriber market share by operator – 2011 - 2016
  • Table 26 – Average use of services per subscriber – 2012 - 2014
  • Table 27 – SMS traffic – 2012 - 2016
  • Table 28 – Active mobile broadband subscribers and penetration rate – 2008 - 2016
  • Table 29 – Mobile internet subscribers – 2011 - 2016
  • Table 30 – Forecast mobile subscribers – 2016; 2018; 2021
  • Table 31 – Average mobile tariffs – 2005 - 2016
  • Table 32 – TTCL mobile subscribers – 2006 - 2016
  • Table 33 – Vodacom Tanzania subscribers – 2000 - 2016
  • Table 34 – Vodacom Tanzania data subscribers – 2013 - 2016
  • Table 35 – Vodacom Tanzania ARPU ($) – 2003 - 2014
  • Table 36 – Vodacom Tanzania ARPU (TZS) – 2011 - 2016
  • Table 37 – Airtel subscribers – 2002 - 2016
  • Table 38 – Zain Tanzania ARPU – 2002 - 2009
  • Table 39 – Millicom Tanzania mobile subscribers – 2000 - 2016
  • Table 40 – Zantel mobile subscribers – 2000 - 2016
  • Table 41 – Viettel (Halotel) mobile subscribers – 2015 - 2016
  • Table 42 – Mobile money subscriptions by operator– 2015 - 2016
  • Chart 1– Fixed lines in service by operator and teledensity – 2005 – 2017
  • Chart 2 – Mobile subscribers in Tanzania – 2005 - 2017
  • Exhibit 1 – Licences issued under the new CLF – 2006 - 2012
  • Exhibit 2 – Emergency rescue scheme for Lake Victoria

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