Tanzania Telecommunications Report Q2 2015
BMI View: Growth in Tanzania's mobile market has rebounded impressively in 2014 following a contraction in 2013, prompted by the discounting of inactive SIMs and slow expansion of networks to rural areas. We believe renewed growth has been triggered by increased investment in network expansion, as demonstrated by Zantel's launch of 3G services on mainland Tanzania and the deployment of the government's Universal Access Fund, as well as intensifying price competition between the country's six mobile operators. We expect positive growth to continue throughout our forecast period to 2019, as Viettel's planned entry into the market in 2015 will ensure expansion to underserved areas as it seeks to build up a subscriber base.
The mobile sector grew 5.9% in Q314, compared to growth of 2.6% in the previous quarter and a 1.1% growth in Q313.
In Q314 market level mobile ARPU continued to recover from a sharp drop in Q113 in local currency terms, but at TZS5,273 it still lags behind Q313 levels.
MFS users have continued to rise and Vodacom reported that active M-PESA users accounted for more than 54% of its total subscriber base.
The fixed-line market recorded significant net losses in Q314, which was the sixth consecutive quarter of contraction.
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