Tanzania Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Last updated: 16 Jul 2024 Update History

Report Status: Current

Report Pages: 200

Analyst: Henry Lancaster

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Summary
Table Of Contents

Tanzanian government grants telcos a TZS326 billion subsidy to improve network coverage

Tanzania’s mobile operators have benefited from the 2022 auction of additional spectrum, with licensees launching 5G services. By March 2024, 5G coverage had reached 13% of the population. Conscious of its dependence on the private sector to realise its Digital Tanzania ambitions, the government has signed several deals with the telcos aimed at ensuring that mobile and broadband services are delivered nationally.

The fixed-line sector remains largely controlled by the incumbent telco TTCL, which has struggled to make headway. The government considers that the company has failed to operate effectively as a provider of fixed phone services and should focus on developing broadband networks. To this end, TTCL has announced ambitious plans to cover all of the country's 139 districts with broadband by the end of 2024 and to connect an additional one million premises to fibre by 2027.

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. In mid-2023 the government also reduced the telecommunications Right-of-Way fee by 80%. This substantially reduced service costs and has enabled telcos to accelerate the expansion of broadband networks. The reduced costs are also reflected in lower end-user prices, thus encouraging the take-up of online services.

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 has 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 continues to invest in the national backbone network. It has signed agreements to connect the network to neighbouring countries including the DRC, Uganda, and Malawi.

Key developments

Tanzania and DRC agree to share telecom infrastructure in a bid to improve investment and develop economic opportunities.
Regulator sets cost-based interconnection charges effective to December 2027.
International internet capacity increased to 5.1TB as of March 2024.
Government reduces right-of-way fee for telcos using land managed by the Tanzania Roads Agency.
Honora Tanzania partners with DCB Bank to extend financial services for the unbanked, launches its Tigo Fibre service.
Tanzania secures a position in orbit at 16 degrees West for its own satellite.
Vodacom acquires Smile Communications Tanzania to bolster its LTE network.
Starlink applies for a license to operate satellite broadband services.
Report update includes regulator’s market data to March 2024, operator data to Q1 2024, 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
Universal Communication Services Access Fund (UCSAF)
Foreign ownership restrictions
Rights of Way (RoW)

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
Mobile broadband

Major mobile operators

TTC Mobile
Vodacom Tanzania
Airtel Tanzania
Honora Tanzania
Zanzibar Telecommunication (Zantel)
Halotel (Viettel Tanzania)

Smart

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

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 – 2024 (e)
Table 2 – Change in average local voice mobile tariffs (TZS per minute) – 2012 – 2024
Table 3 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Table 4 – Mobile voice subscriber market share by operator – 2012 – 2024
Table 5 – Average use of services per subscriber (per month) – 2012 – 2023
Table 6 – Increase in mobile voice traffic by type (million minutes) – 2014 – 2024
Table 7 – Growth in the number of SMS sent (billion) – 2012 – 2024
Table 8 – Growth in the number of SMS sent by quarter – 2012 – 2024
Table 9 – Growth in mobile broadband traffic – 2020 – 2024
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 – 2024
Table 12 – Growth in the number of TTCL’s mobile subscribers – 2012 – 2024
Table 13 – Growth in the number of Vodacom Tanzania’s mobile subscribers (regulator data) – 2012 – 2024
Table 14 – Growth in the number of Vodacom Tanzania’s mobile subscribers (company data) – 2011 – 2024
Table 15 – Growth in the number of Vodacom Tanzania’s active data subscribers – 2013 – 2024
Table 16 – Development of Vodacom Tanzania’s revenue – 2016 – 2024
Table 17 – Development of Vodacom Tanzania’s mobile ARPU (TZS per month) – 2011 – 2024
Table 18 – Growth in the number of Airtel Tanzania’s mobile subscribers – 2012 – 2024
Table 19 – Development of Honora Tanzania’s financial data ($ million) – 2017 – 2023
Table 20 – Increase in the number of Honora Tanzania’s mobile subscribers – 2012 – 2024
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 – 2024
Table 23 – Decline in the number of Smart’s mobile subscribers – 2015 – 2019
Table 24 – Increase in the number of mobile money transactions – 2019 – 2024
Table 25 – Increase in the number of mobile money subscriptions – 2015 – 2024
Table 26 – Change in the number of mobile money subscriptions by operator – 2015 – 2024
Table 27 – Share of mobile money subscriptions by operator – 2015 – 2024
Table 28 – Increase in Vodacom’s financial services revenue – 2021 – 2024
Table 29 – Growth in the number of fixed-line broadband subscribers – 2012 – 2027
Table 30 – Growth in the number of fixed-line broadband subscribers by type – 2022 – 2024
Table 31 – Increase in the number of cable modem broadband subscribers – 2012 – 2019
Table 32 – Increase in the number of fibre broadband subscribers – 2015 – 2019
Table 33 – Fixed wireless internet subscribers – 2013 – 2019
Table 37 – Growth in international internet bandwidth – 2012 – 2021
Table 38 – Historic - Fixed interconnection rates – 2013 – 2017
Table 39 – Historic - Average mobile tariffs (TZS per minute) – 2005 – 2011
Table 40 – Historic - Mobile subscribers and penetration rate – 1995 – 2011
Table 41 – Historic - Vodacom Tanzania data subscribers – 2013 – 2016
Table 42 – Historic - Vodacom Tanzania ARPU ($) – 2003 – 2014
Table 43 – Historic - Vodacom Tanzania ARPU (TZS) – 2011 – 2016
Table 44 – Historic - TTC mobile subscribers – 2006 – 2011
Table 45 – Historic - Vodacom Tanzania subscribers – 2000 – 2011
Table 46 – Historic - Airtel Tanzania subscribers – 2002 – 2011
Table 47 – Historic - Millicom Tanzania mobile subscribers – 2000 – 2011
Table 48 – Historic - Zantel’s mobile subscribers – 2000 – 2011
Table 49 – Historic - Internet users and penetration rate – 1999 – 2011
Table 50 – Historic - Fixed-line internet subscribers – 2001 – 2011
Table 51 – Historic - Fixed-line broadband subscribers – 2015 – 2011
Table 52 – Historic - Cable modem broadband subscribers – 2005 – 2011
Table 53 – Historic - TTC financial data (TZS billion) – 2010 – 2014
Table 54 – Historic - Fixed lines in service by operator and teledensity – 1999 – 2011
Table 55 – Historic - Fixed lines in service – 1995 – 2011
Table 56 – 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 – 2024
Chart 11 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Chart 12 – Mobile voice subscriber market share by operator – 2012 – 2024
Chart 13 – Increase in national mobile voice traffic – 2014 – 2024
Chart 14 – Growth in the number of SMS sent – 2012 – 2024
Chart 15 – Growth in the number of SMS sent – 2012 – 2024
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 – 2024
Chart 18 – Growth in the number of TTCL’s mobile subscribers – 2012 – 2024
Chart 19 – Growth in the number of Vodacom Tanzania’s mobile subscribers (regulator data) – 2012 – 2024
Chart 20 – Growth in the number of Vodacom Tanzania’s active data subscribers – 2013 – 2024
Chart 21 – Development of Vodacom Tanzania’s revenue – 2016 – 2024
Chart 22 – Development of Vodacom Tanzania’s mobile ARPU – 2012 – 2024
Chart 23 – Growth in the number of Airtel Tanzania’s mobile subscribers – 2012 – 2024
Chart 24 – Development of Honora Tanzania’s financial data – 2017 – 2023
Chart 25 – Increase in the number of Honora Tanzania’s mobile subscribers – 2012 – 2024
Chart 26 – Change in the number of Zantel’s mobile subscribers – 2012 – 2021
Chart 27 – Growth in the number of Halotel’s mobile subscribers – 2015 – 2024
Chart 28 – Decline in the number of Smart’s mobile subscribers – 2015 – 2019
Chart 29 – Increase in the number of mobile money transactions – 2019 – 2024
Chart 30 – Increase in the number of mobile money subscriptions – 2015 – 2024
Chart 31 – Change in the number of mobile money subscriptions by operator – 2015 – 2024
Chart 32 – Share of mobile money subscriptions by operator – 2015 – 2024
Chart 33 – Growth in the number of fixed-line broadband subscribers – 2012 – 2027
Chart 35 – 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 – Mobile interconnection rates – 2023 - 2027
Exhibit 9 – 3G coverage – 2022 - 2024
Exhibit 10 – LTE coverage – 2022 - 2024
Exhibit 11 – 2Africa landing stations

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Tanzania Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

Tanzanian government grants telcos a TZS326 billion subsidy to improve network coverage

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