Tanzania - Telecoms, Mobile, Broadband and Forecasts

Published by: Paul Budde Communication Pty Ltd

Published: Dec. 3, 2012 - 6 Pages


Table of Contents

1. Executive summary
2. Key statistics
3. Telecommunications market
3.1 Overview of Tanzania’s telecom market
4. Regulatory environment
4.1 Background
4.2 Regulatory authority
4.2.1 TCRA
4.3 National Telecommunications Policy 1997
4.4 National ICT Policy 2003
4.5 Regulatory overhaul 2005
4.6 Electronic and Postal Communication Act 2010
4.7 Telecom sector liberalisation
4.7.1 Converged licensing framework (CLF) since 2005
4.7.2 International gateways
4.8 Interconnection
4.9 Universal access fund
4.10 Foreign ownership restrictions
4.11 Registration of subscriber details
4.12 Mobile number portability (MNP)
5. Fixed network operators
5.1 TTCL
5.1.1 Privatisation and exclusivity period 2000-2005
5.1.2 SaskTel management contract 2007-2009
5.1.3 Future direction
5.2 Zantel
5.3 BOL
6. Fixed-line infrastructure
6.1 Fixed-line statistics
6.2 TTCL’s fixed-line network
6.3 Wireless local loop (WLL)
6.4 Private networks
6.5 National fibre backbone
6.6 International infrastructure
6.6.1 Submarine fibre
6.6.2 Satellite
6.6.3 Terrestrial
7. Internet market
7.1 Overview
7.1.1 Internet statistics
7.2 Limited availability of PCs
7.3 Public internet access locations
7.4 Tanzania’s ISP market
7.4.1 Major ISPs
7.4.2 Tanzania Internet Exchange (TIX, AIXP)
7.5 ccTLD management
8. Broadband market
8.1 Overview
8.2 ADSL
8.3 Wireless broadband
8.3.1 iBurst
8.3.2 EV-DO
8.3.3 WiMAX
9. Digital economy
9.1 Voice over Internet Protocol telephony
9.2 E-health
9.3 E-learning
9.4 Facebook
10. Mobile communications
10.1 Overview of Tanzania’s mobile market
10.1.1 Mobile statistics
10.2 Major mobile operators
10.2.1 Vodacom Tanzania
10.2.2 Bharti Airtel (formerly Zain, Celtel)
10.2.3 Millicom Tanzania (Mobitel, Tigo)
10.2.4 Zantel
10.3 Tariffs
10.3.1 Special regional tariffs
10.3.2 Free international roaming
10.3.3 Price war
10.4 Mobile data services and pricing
10.4.1 Third generation (3G)
10.4.2 LTE (4G)
10.4.3 Blackberry
10.4.4 Mobile money transfer, m-banking
10.4.5 Mobile TV
11. Forecasts
11.1 Forecasts – mobile market – 2014, 2017
11.2 Notes on scenario forecasts
12. Related reports
List of Tables, Charts and Exhibits
Table 1 – Country statistics Tanzania – 2013
Table 2 – Fixed-line network statistics – 2013
Table 3 – Internet provider statistics – 2013
Table 4 – Internet user statistics – 2013
Table 5 – Mobile statistics – 2013
Table 6 – National telecommunications authority
Table 7 – Fixed lines in service by operator and teledensity – 1999 - 2013
Table 8 – Internet users and penetration rate – 1999 - 2013
Table 9 – Mobile subscribers and penetration rate – 1999 - 2012
Table 10 – Mobile subscribers by operator and annual change – June 2012
Table 11 – Vodacom Tanzania ARPU – 2003 - 2012
Table 12 – Zain Tanzania ARPU – 2002 - 2009
Table 13 – Forecast mobile subscribers – 2014; 2017
Chart 1 – Mobile subscribers in Tanzania – 2002 - 2013
Exhibit 1 – Licences issued under the new CLF – 2006 - 2012
Exhibit 2 – Emergency rescue scheme for Lake Victoria

Abstract

One of the first 4G/LTE markets in Africa

This annual report provides a comprehensive overview of trends and developments in Tanzania’s telecommunications market.

Subjects covered include:

Key statistics;
Market and industry overviews;
Government policies affecting the telecoms industry;
Market liberalisation and regulatory issues;
Telecoms operators – privatisation, acquisitions, new licences;
Major players (fixed, mobile and broadband);
Infrastructure development;
Mobile voice and data markets, including 3G;
Internet development and pricing;
Broadband, including 3G mobile;
Convergence (voice/data, fixed/wireless/mobile).
Average Revenue per User (ARPU).

Tanzania’s economy has been showing solid growth rates of between 5% and 8% every year since 2000 which remained virtually unharmed by the global economic crisis. For the period 2013-2017, the International Monetary Fund predicts stable GDP growth at around 7% per annum.

Mining and tourism are main industry sectors. However, the country continues to suffer from underdeveloped infrastructure, including roads, railways, electricity and telecommunications.

The government has actively embraced the principles of competition and a private sector including foreign participation as a means of rapidly advancing economic and social development. Policy reforms have led to the telecom sector becoming one of the more liberal ones 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 – the mobile market broke the 60% penetration barrier at the end of 2011, with annual subscriber growth of more than 20%. The year was characterised by a price war which inflicted heavy subscriber losses on the smaller operators in 2012.

The new 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 mobile broadband services, the mobile networks are becoming the country’s leading internet service providers on the back of their extensive national infrastructure and existing subscriber bases in the voice market. The additional revenue from data services is badly needed in an almost entirely prepaid environment with rapidly falling voice ARPU. Another new income source is mobile money transfer and m-banking.

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 completely 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.

Market highlights:

Price war is hurting smaller operators;
Very low average revenue per user (ARPU);
Consolidation likely among the 12 licensed mobile operators;
Forecast for mobile market to 2014 and 2017.

Estimated market penetration rates in Tanzania’s telecoms sector – end 2013
Market | Penetration rate
Mobile | 75%
Fixed | 0.4%
Internet | 14%
(Source: BuddeComm based on various sources)

Companies covered 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.

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