Tanzania Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Publication Date: April 2024

Report Pages: 189

Analyst: Henry Lancaster

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Summary
Table Of Contents

Digital Tanzania project gets underway as the MNOs make use of additional released spectrum

Tanzania’s mobile market enjoys effective competition, though the fixed-line sector remains largely controlled by the incumbent telco TTCL, which has struggled to gain subscribers. The company came under renewed government scrutiny in early 2023, which stimulated further investment in network infrastructure and upgrades.

The government has encouraged foreign participation to promote economic growth and social development, and policy reforms have led to the country having one of the most liberal telecom sectors in Africa. The government has also sought to increase broadband penetration by a range of measures, including the reduction in VAT charged on the sale of smartphones and other devices, and reductions in the cost of data. Public opposition to a controversial tax on m-money transactions forced the government in mid-2022 to reduce charges.

The MNOs became the leading ISPs following the launch of mobile broadband services based on 3G and LTE technologies. Services based on 5G were launched in mid-2022 by Tigo and Vodacom as these operators hoped to generate revenue growth in the mobile data services market, given that the voice market is almost entirely prepaid, and voice ARPU continues to fall. The MNOs have collectively invested in network upgrades, which in turn has supported mobile data use, as well as in m-money transfer services and m-banking services. Together, these have become a fast-developing source of revenue. In addition, the MNOs have undertaken commitments to build towers aimed at serving areas of the country which lack connectivity as part of a wider national broadband program.

The landing of the first international submarine cables in the country some years ago revolutionised the telecom market, which up to that point had entirely depended on expensive satellite connections. Liquid Intelligent Technologies recently completed a terrestrial cable network linking the East and West coasts of Africa, with an important terminus at Dar es Salaam linking to three submarine cables. In parallel, the government aims to complete a national fibre backbone network, having signed an agreement by which the incumbent telco TTC can make use of the infrastructure of the national electric supply company Tanesco, and so extend broadband availability to 94% of the country.

The government continues to invest in the national backbone network, aiming to have 15,000km in service by the end of 2023, and to provide ongoing connectivity to more countries in the region.

Domestically, Vodacom Tanzania contracted Eutelsat to provide satellite broadband services to areas of Tanzania which lack connectivity, while Starlink has also applied for a license to deliver satellite broadband.

Key developments

Tanzania and DRC agree to share telecom infrastructure in a bid to improve investment and develop economic opportunities.
Vodacom extends the reach of its M-mama health service in Tanzania and neighbouring countries.
Government reviews TTCL’s business viability following a poor performance.
Tigo Tanzania launches 5G services with Ericsson as vendor.
Digital Tanzania project gets underway, potentially delivering mobile data service to 8.5 million people in underserved areas.
TTCL contracts Huawei to build an additional 1,520km to the national backbone network, connecting a further 23 districts.
Regulator concludes multi-spectrum auction, raising $187.5 million.
Starlink applies for a license to operate satellite broadband services.
Report update includes regulator’s market data to March 2023, operator data to Q1 2023, updated Telecom Maturity Index charts and analyses, recent market developments.

Companies mentioned in this report

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

Key statistics
Regional Africa Market Comparison

Market characteristics
Market Leaders
Market Challengers
Market Emergents
TMI vs GDP
Mobile and mobile broadband penetration
Fixed versus mobile broadband penetration

Country overview
Telecommunications market

Market analysis

Regulatory environment

Regulatory authority
National Telecommunications Policy 1997
National ICT Policy
Regulatory overhaul
Electronic and Postal Communication Act 2010
Electronic and Postal Communications Regulations 2018
Fixed-line developments

Telecom sector liberalisation
Converged licensing framework (CLF)
International gateways
Interconnection
Universal Communication Services Access Fund (UCSAF)
Foreign ownership restrictions

Mobile network developments

Mobile Number Portability (MNP)
Quality of Service
Spectrum auction – 2018
Multi spectrum auction – 2022
Tariffs
International roaming
Mobile Termination Rate (MTR)
Network sharing
SIM card registration

Mobile market

Market analysis
Mobile statistics
Mobile infrastructure

5G
4G (LTE)
3G
Other infrastructure developments
Mobile data services
Mobile broadband

Major mobile operators

TTC Mobile
Vodacom Tanzania
Airtel Tanzania
Tigo Tanzania
Zanzibar Telecommunication (Zantel)
Halotel (Viettel Tanzania)
Mobile Virtual network Operators (MVNOs)

Mobile content and applications

M-money, m-banking
M-health

Fixed-line broadband market

Introduction and statistical overview

Broadband statistics
Public internet access locations
Tanzania Internet Exchange (TIX, AIXP)

Broadband infrastructure

Digital Subscriber Line (DSL) Networks
Fibre-to-the-Premises (FttP)
EV-DO
Fixed wireless (WiMAX, WiBro, Wi-Fi)
Satellite broadband
Balloon broadband

Digital economy

E-health
E-learning

Fixed network operators

TTCL

Privatisation and exclusivity period 2000-2005
SaskTel management contract 2007-2009
Future direction

Zantel
Smart

Telecommunications infrastructure

TTCL’s fixed-line network
Wireless local loop (WLL)
Private networks
National fibre backbone
International infrastructure

Submarine fibre
Satellite
Terrestrial

Appendix – Historic data
Glossary of abbreviations
Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities – Tanzania – 2023 (e)
Table 2 – Change in average local voice mobile tariffs (TZS per minute) – 2012 – 2023
Table 3 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Table 4 – Mobile voice subscriber market share by operator – 2012 – 2023
Table 5 – Average use of services per subscriber (per month) – 2012 – 2023
Table 6 – Change in mobile voice traffic by type (million minutes) – 2014 – 2023
Table 7 – Growth in the number of SMS sent (billion) – 2012 – 2023
Table 8 – Growth in the number of SMS sent by quarter – 2012 – 2023
Table 9 – Growth in mobile broadband traffic – 2020 – 2023
Table 10 – Growth in the number of active mobile broadband subscribers and penetration – 2012 – 2027
Table 11 – Growth in the number of internet users and penetration rate – 2012 – 2023
Table 12 – Growth in the number of TTCL’s mobile subscribers – 2012 – 2023
Table 13 – Growth in the number of Vodacom Tanzania’s mobile subscribers – 2012 – 2023
Table 14 – Growth in the number of Vodacom Tanzania’s mobile subscribers (company data) – 2011 – 2023
Table 15 – Growth in the number of Vodacom Tanzania’s active data subscribers (company data) – 2013 – 2023
Table 16 – Development of Vodacom Tanzania’s revenue – 2016 – 2023
Table 17 – Development of Vodacom Tanzania’s mobile ARPU (TZS per month) – 2011 – 2023
Table 18 – Growth in the number of Airtel Tanzania’s mobile subscribers – 2012 – 2023
Table 19 – Development of Tigo Tanzania’s financial data ($ million) – 2017 – 2021
Table 20 – Increase in the number of Tigo Tanzania’s mobile subscribers – 2012 – 2023
Table 21 – Change in the number of Zantel’s mobile subscribers – 2012 – 2021
Table 22 – Growth in the number of Halotel’s mobile subscribers – 2015 – 2023
Table 23 – Increase in the number of mobile money transactions – 2020 – 2023
Table 24 – Increase in the number of mobile money subscriptions – 2015 – 2023
Table 25 – Change in the number of mobile money subscriptions by operator – 2015 – 2023
Table 26 – Share of mobile money subscriptions by operator – 2015 – 2023
Table 27 – Increase in Vodacom’s financial services revenue – 2021 – 2023
Table 28 – Growth in the number of fixed-line broadband subscribers – 2012 – 2027
Table 29 – Increase in the number of cable modem broadband subscribers – 2012 – 2019
Table 30 – Increase in the number of fibre broadband subscribers – 2015 – 2019
Table 31 – Fixed wireless internet subscribers – 2013 – 2019
Table 32 – Decline in the number of Smart’s mobile subscribers – 2015 – 2019
Table 35 – Growth in international internet bandwidth – 2012 – 2021
Table 36 – Historic - Fixed interconnection rates – 2013 – 2017
Table 37 – Historic - Average mobile tariffs (TZS per minute) – 2005 – 2011
Table 38 – Historic - Mobile subscribers and penetration rate – 1995 – 2011
Table 39 – Historic - Vodacom Tanzania data subscribers – 2013 – 2016
Table 40 – Historic - Vodacom Tanzania ARPU ($) – 2003 – 2014
Table 41 – Historic - Vodacom Tanzania ARPU (TZS) – 2011 – 2016
Table 42 – Historic - TTC mobile subscribers – 2006 – 2011
Table 43 – Historic - Vodacom Tanzania subscribers – 2000 – 2011
Table 44 – Historic - Airtel Tanzania subscribers – 2002 – 2011
Table 45 – Historic - Millicom Tanzania mobile subscribers – 2000 – 2011
Table 46 – Historic - Zantel’s mobile subscribers – 2000 – 2011
Table 47 – Historic - Internet users and penetration rate – 1999 – 2011
Table 48 – Historic - Fixed-line internet subscribers – 2001 – 2011
Table 49 – Historic - Fixed-line broadband subscribers – 2015 – 2011
Table 50 – Historic - Cable modem broadband subscribers – 2005 – 2011
Table 51 – Historic - TTC financial data (TZS billion) – 2010 – 2014
Table 52 – Historic - Fixed lines in service by operator and teledensity – 1999 – 2011
Table 53 – Historic - Fixed lines in service – 1995 – 2011
Table 54 – Historic - International bandwidth – 2001 – 2011

List of Charts

Chart 1 – Africa Telecoms Maturity Index – Market Leaders
Chart 2 – Africa – Market Leaders global ranking
Chart 3 – Africa Telecoms Maturity Index – Market Challengers
Chart 4 – Africa – Market Challengers global ranking
Chart 5 – Africa Telecoms Maturity Index – Market Emergents
Chart 6 – Africa – Market Emergents global ranking
Chart 7 – Africa – Telecoms Maturity Index vs GDP per capita
Chart 8 – Africa – Mobile subscriber penetration vs mobile broadband penetration
Chart 9 – Africa – Fixed and mobile broadband penetration
Chart 10 – Change in average mobile tariffs – 2012 – 2023
Chart 11 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Chart 12 – Mobile voice subscriber market share by operator – 2012 – 2023
Chart 13 – Change in mobile national voice traffic by type (million minutes) – 2014 – 2023
Chart 14 – Growth in the number of SMS sent (billion) – 2012 – 2023
Chart 15 – Growth in the number of SMS sent – 2012 – 2023
Chart 16 – Growth in the number of active mobile broadband subscribers and penetration – 2012 – 2027
Chart 17 – Growth in the number of internet users and penetration rate – 2012 – 2023
Chart 18 – Growth in the number of TTCL’s mobile subscribers – 2012 – 2023
Chart 19 – Growth in the number of Vodacom Tanzania’s mobile subscribers – 2012 – 2023
Chart 20 – Development of Vodacom Tanzania’s revenue – 2016 – 2023
Chart 21 – Development of Vodacom Tanzania’s mobile ARPU – 2012 – 2023
Chart 22 – Growth in the number of Airtel Tanzania’s mobile subscribers – 2012 – 2021
Chart 23 – Increase in the number of Tigo Tanzania’s mobile subscribers – 2012 – 2023
Chart 24 – Change in the number of Zantel’s mobile subscribers – 2012 – 2021
Chart 25 – Growth in the number of Halotel’s mobile subscribers – 2015 – 2023
Chart 26 – Increase in the number of mobile money transactions – 2019 – 2023
Chart 27 – Increase in the number of mobile money subscriptions – 2015 – 2023
Chart 28 – Change in the number of mobile money subscriptions by operator – 2015 – 2023
Chart 29 – Share of mobile money subscriptions by operator – 2015 – 2023
Chart 30 – Growth in the number of fixed-line broadband subscribers – 2012 – 2027
Chart 31 – Decline in the number of Smart’s mobile subscribers – 2015 – 2019
Chart 33 – Growth in international internet bandwidth – 2012 – 2021

List of Exhibits

Exhibit 1 – Map of Telecom Maturity Index global ranking among countries in Africa
Exhibit 2 – Generalised Market Characteristics by Market Segment
Exhibit 3 – Africa – Market Leaders and market developments
Exhibit 4 – Africa – Market Challengers and market developments
Exhibit 5 – Africa – Market Emergents and market developments
Exhibit 6 – 700MHz spectrum auction – June 2018
Exhibit 7 – Spectrum auction – August 2022
Exhibit 8 – 3G coverage – 2022 - 2023
Exhibit 9 – LTE coverage – 2022 - 2023
Exhibit 10 – 2Africa landing stations

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Tanzania Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

Digital Tanzania project gets underway as the MNOs make use of additional released spectrum

Key developments

Companies mentioned in this report

Key statistics

Regional Africa Market Comparison

Country overview

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Digital economy

Fixed network operators

Telecommunications infrastructure

Appendix – Historic data

Glossary of abbreviations

Related reports

Purchase this Report

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Research Methodology

Hot Topics

News & Views