Tanzanian government extends national backbone network

Tanzanian government extends national backbone network

Tanzania’s telecom sector enjoys effective competition, particularly in the mobile segment. There remains considerable movement within the market, 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 technologies. 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, the MNOs have invested in network upgrades, which in turn has supported mobile data use, as well as m-money transfer services and m-banking services. Together, these have become a fast-developing source of revenue.

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 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 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.

In late 2021, the government announced plans to extend the national backbone network from about 8,300km to 15,000km by 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 World Mobile has launched a balloon-based broadband network in Zanzibar.

Key developments:

  • Tigo completes merger with Zantel, sells its Tanzanian business to Axian;
  • Government announces extension to the national broadband network;
  • Vodacom contracts Eutelsat to provide satellite broadband connectivity to underserved areas;
  • Airtel Tanzania partners with I&M Bank to provide a mobile wallet overdraft service, sells its portfolio of 1,400 towers;
  • World Mobile launches a balloon-based network in Zanzibar;
  • 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.

Get a Full Copy of this Report

Developing Telecoms market report summaries are produced in partnership with BuddeCom, the world’s largest continually updated online telecommunications research service.

The above article is a summary of the following BuddeCom report:

Report title: Tanzania - Telecoms, Mobile and Broadband - Statistics and Analyses

Edition: February 2022

Analysts: Henry Lancaster

Number of pages: 174

Companies mentioned in the 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

Single User PDF Licence Price: US$890

For more information or to purchase a copy of the full report please use the following link: https://www.budde.com.au/Research/Tanzania-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses/?r=83

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