Tanzania's telecoms market continues to be driven by uptake in mobile services. The high demand for 3G/4G and itsexpected strong growth is especially noteworthy, considering the country's low penetration rate. Operators will also continue todiversifying into value added offerings through digital, data and mobile financial services in order to engage more deeply withcustomers and to improve brand loyalty. However, low levels of urbanisation and constrained spending powers will limit uptake ofpremium services over the course of our forecast period. Operators' continued focus on more profitable urban areas, as opposed tounderserved rural parts of the country, will continue to weigh on the pace of network expansions in these areas. Meanwhile,increased regulatory pressures and state involvement in the sector will weigh on a market already hosting more players than it cansustain.
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