Tanzania Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Last updated: 26 Oct 2021 Update History

Report Pages: 173

Analyst: Henry Lancaster

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Summary
Table Of Contents

Tigo exits the Tanzanian telecom market

Tanzania’s telecom sector enjoys effective competition, particularly in the mobile segment. There remains considerable movement within it, with Smart having stopped services in late 2019 and Tigo Tanzania having completed its merger with Zantel. Tigo Tanzania in April 2021 was sold by its parent company MIC as it sought to focus on its operations in Latin America.

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 late 2021 to reduce charges by 30%.

The MNOs became the leading ISPs following the launch of mobile broadband services based on 3G and LTE. 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 international submarine cables in the country some years ago revolutionised the market which up to that point had entirely depended on expensive satellite connections. Liquid Telecom 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 aiming 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.

BuddeComm notes that the outbreak of the Coronavirus continues to have a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.

The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.

Key developments

Tigo completes merger with Zantel, sells its Tanzanian business to Axian;
Airtel Tanzania partners with I&M Bank to provide a mobile wallet overdraft service, sells its portfolio of 1,400 towers;
New MTR is agreed to 2022;
Halotel aiming for more than ten million mobile subscribers by 2023;
Tanzania joins the One Network Area initiative;
World Bank approves $150 million loan to develop the Digital Tanzania Project;
Tigo Pesa receives the GSMA Mobile Money Certification;
Halotel Tanzania launches HaloPesa m-banking service;
TTC extends LTE-A service, launches investment program for its FttP project;
Government allocates TZS17.5 billion to improve rural telecom infrastructure;
Report update includes regulator’s market data to June 2021, operator data to Q2 2021, Telecom Maturity Index charts and analyses, assessment of the global impact of Covid-19 on the telecoms sector, 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 Limited (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
Covid-19 and its impact on the telecom sector

Economic considerations and responses
Subscribers
Infrastructure

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 – 700MHz
Tariffs
International roaming
Mobile Termination Rate (MTR)
Network sharing
SIM card registration

Mobile market

Market analysis
Mobile statistics
Mobile infrastructure

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

Digital economy

E-health
E-learning

Fixed network operators

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

Zantel
Smart

Telecommunications infrastructure

TTC’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 – 2021 (e)
Table 2 – Change in average mobile tariffs (TZS per minute) – 2011 – 2020
Table 3 – Growth in the number of mobile subscribers and penetration – 2011 – 2026
Table 4 – Mobile voice subscriber market share by operator – 2011 – 2021
Table 5 – Average use of services per subscriber – 2012 – 2021
Table 6 – Change in mobile voice traffic by type (million minutes) – 2014 – 2021
Table 7 – Growth in the number of SMS sent – 2012 – 2021
Table 8 – Growth in the number of active mobile broadband subscribers and penetration – 2011 – 2026
Table 9 – Growth in the number of internet users and penetration rate – 2011 – 2021
Table 10 – Growth in the number of TTC’s mobile subscribers – 2011 – 2021
Table 11 – Growth in the number of Vodacom Tanzania’s mobile subscribers – 2011 – 2021
Table 12 – Development of Vodacom Tanzania’s revenue – 2016 – 2021
Table 13 – Development of Vodacom Tanzania’s mobile ARPU (TZS per month) – 2011 – 2021
Table 14 – Growth in the number of Airtel Tanzania’s mobile subscribers – 2011 – 2021
Table 15 – Development of Tigo Tanzania’s financial data ($ million) – 2017 – 2021
Table 16 – Increase in the number of Tigo Tanzania’s mobile subscribers – 2011 – 2021
Table 17 – Change in the number of Zantel’s mobile subscribers – 2011 – 2021
Table 18 – Growth in the number of Halotel’s mobile subscribers – 2015 – 2021
Table 19 – Mobile money subscriptions by operator (million) – 2015 – 2021
Table 20 – Share of mobile money subscriptions by operator – 2015 – 2021
Table 21 – Growth in the number of fixed-line broadband subscribers – 2011 – 2026
Table 22 – Cable modem broadband subscribers – 2011 – 2019
Table 23 – Fixed wireless internet subscribers – 2013 – 2019
Table 24 – Decline in the number of Smart’s mobile subscribers – 2015 – 2019
Table 27 – Growth in international internet bandwidth – 2009 – 2017; 2020
Table 28 – Historic - Fixed interconnection rates – 2013 – 2017
Table 29 – Historic - Average mobile tariffs – 2005 – 2010
Table 30 – Historic - Mobile subscribers and penetration rate – 1995 – 2010
Table 31 – Historic - Vodacom Tanzania data subscribers – 2013 – 2016
Table 32 – Historic - Vodacom Tanzania ARPU ($) – 2003 – 2014
Table 33 – Historic - Vodacom Tanzania ARPU (TZS) – 2011 – 2016
Table 34 – Historic - TTC mobile subscribers – 2006 – 2010
Table 35 – Historic - Vodacom Tanzania subscribers – 2000 – 2010
Table 36 – Historic - Airtel Tanzania subscribers – 2002 – 2010
Table 37 – Historic - Millicom Tanzania mobile subscribers – 2000 – 2010
Table 38 – Historic - Zantel’s mobile subscribers – 2000 – 2010
Table 39 – Historic - Internet users and penetration rate – 1999 – 2014
Table 40 – Historic - Fixed-line internet subscribers – 2001 – 2010
Table 41 – Historic - Fixed-line broadband subscribers – 2005 – 2010
Table 42 – Historic - Cable modem broadband subscribers – 2005 – 2010
Table 43 – Historic - TTC financial data (TZS billion) – 2010; 2012 – 2014
Table 44 – Historic - Fixed lines in service by operator and teledensity – 1999 – 2010
Table 45 – Historic - Fixed lines in service – 1995 – 2010
Table 46 – Historic - International bandwidth – 2001 – 2010

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 – 2011 – 2020
Chart 11 – Growth in the number of mobile subscribers and penetration – 2011 – 2026
Chart 12 – Mobile voice subscriber market share by operator – 2011 – 2021
Chart 13 – Growth in the number of SMS sent – 2012 – 2021
Chart 14 – Growth in the number of active mobile broadband subscribers and penetration – 2011 – 2026
Chart 15 – Growth in the number of internet users and penetration rate – 2011 – 2021
Chart 16 – Growth in the number of TTC’ mobile subscribers – 2011 – 2021
Chart 17 – Growth in the number of Vodacom Tanzania’s mobile subscribers – 2011 – 2021
Chart 18 – Development of Vodacom Tanzania’s revenue – 2016 – 2021
Chart 19 – Development of Vodacom Tanzania’s mobile ARPU (TZS per month) – 2011 – 2021
Chart 20 – Growth in the number of Airtel Tanzania’s mobile subscribers – 2011 – 2021
Chart 21 – Increase in the number of Tigo Tanzania’s mobile subscribers – 2011 – 2021
Chart 22 – Change in the number of Zantel’s mobile subscribers – 2011 – 2021
Chart 23 – Growth in the number of Halotel’s mobile subscribers – 2015 – 2021
Chart 24 – Mobile money subscriptions by operator – 2015 – 2021
Chart 25 – Share of mobile money subscriptions by operator – 2015 – 2021
Chart 26 – Growth in the number of fixed-line broadband subscribers – 2011 – 2026
Chart 27 – Decline in the number of Smart’s mobile subscribers – 2015 – 2019
Chart 29 – Growth in international internet bandwidth – 2009 – 2017; 2020

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 – 2Africa landing stations

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Tanzania Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

Tigo exits the Tanzanian telecom market

Key developments

Companies mentioned in this report

Key statistics

Regional Africa Market Comparison

Country overview

Covid-19 and its impact on the telecom sector

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

Purchase with Confidence

Research Methodology

Hot Topics

News & Views