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Tanzania - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

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Tanzania - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

Tanzania's TTCL enters the crowded mobile money market

The government has actively embraced competition in the telecom market, and has encouraged the private sector. Foreign participation has also been encouraged to promote economic growth and social development. Policy reforms have led to the telecom sector becoming among the most liberal 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 mobile penetration has broached 80%. In recent years a price war among these players has adversely affected the smaller operators, which have suffered from customer churn.

The 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 and LTE mobile broadband services, the mobile networks have become the leading internet service providers. 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 fibre optic international submarine cables in the country in recent years has revolutionised the market which up to that point entirely 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.

The government has become more determined to manage the telecom sector more effectively. It has cracked down on counterfeit smartphones, which were thought to account for up to 30% of devices in circulation at the start of the campaign, while in early 2016 the telecom regulator's board was dismissed after it had failed to update the Telecommunications Traffic Monitoring System (TTMS). This system was expected to deliver up to TZS400 billion to the government annually.

Market penetration rates in Tanzania's telecoms sector 2015 (e)
Market | Penetration rate
Fixed-line telephony | 0.3%
Internet users | 34%
Mobile SIM (population) | 81%
(Source: BuddeComm)

Key developments:

TTCL enters m-money market;
Smile launches VoLTE services;
ISP UhuruOne piggybacking on Tigo's LTE network;
Tanzanian MNOs achieve full m-money interoperability;
Tigo secures stake in Helios Towers;
Regulator planning multi-spectrum auction to boost mobile broadband use and develop an emergency service mobile network;
Smile Communications contracts Ericsson to manage LTE infrastructure;
Government signs MoU for final phase of the national backbone network;
Phase 2B USF contracts awarded;
Government agrees to buy back a 35% stake in TTCL from Bharti Airtel, for TZS14.6 billion;
Millicom acquires Etisalat's 85% stake in Zantel;
Low ARPU encouraging mobile operators to develop mobile data and commerce services;
Regulator sets voice interconnection rates to 2017;
Government allocates TZS17.5 billion ($10.8 million) to improve rural telecom infrastructure;
Smile Communications trials VoLTE services;
Government cracks down on counterfeit smartphones;
TTCL opens a new microwave link connecting Dar es Salaam and Zanzibar, doubling data capacity;
Telecom regulator's board dismissed;
Report update includes regulator's market data to March 2016, operator data to Q1 2016, recent market developments.

Companies mentioned 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;; Tele2; Alink; SatCom Networks; SimbaNet; Afsat; Cats-Net.

1. Executive summary
2. Key statistics
3. Country overview
4. Telecommunications market
4.1 Market analysis
5. Regulatory environment
5.1 Regulatory authority
5.2 National Telecommunications Policy 1997
5.3 National ICT Policy
5.4 Regulatory overhaul
5.5 Electronic and Postal Communication Act 2010
5.6 Telecom sector liberalisation
5.6.1 Converged licensing framework (CLF)
5.6.2 International gateways
5.7 Interconnection
5.8 Universal Communication Services Access Fund (UCSAF)
5.9 Foreign ownership restrictions
5.10 Registration of subscriber details
5.11 Mobile Number Portability (MNP)
5.12 Voice over Internet Protocol (VoIP)
6. Fixed network operators
6.1 TTCL
6.1.1 Privatisation and exclusivity period 2000-2005
6.1.2 SaskTel management contract 2007-2009
6.1.3 Future direction
6.1.4 Ownership changes 2015
6.2 Zantel
6.3 BOL
7. Telecommunications infrastructure
7.1 TTCL's fixed-line network
7.2 Wireless local loop (WLL)
7.3 Private networks
7.4 National fibre backbone
8. International infrastructure
8.1 Submarine fibre
8.2 Satellite
8.3 Terrestrial
9. Broadband market
9.1 Introduction and statistical overview
9.1.1 Market analysis
9.1.2 Broadband statistics
9.1.3 Public internet access locations
9.1.4 ISP market
9.1.5 Tanzania Internet Exchange (TIX, AIXP)
9.1.6 ccTLD management
9.2 Broadband infrastructure
9.2.1 Hybrid Fibre Coax (HFC) networks
9.2.2 Digital Subscriber Line (DSL) Networks
9.2.3 EV-DO
9.2.4 Fixed wireless (WiMAX, WiBro, Wi-Fi)
9.2.5 Satellite broadband
10. Digital economy
10.1 E-health
10.2 E-learning
10.3 Facebook
11. Digital media
11.1 Digital TV developments
12. Mobile market
12.1 Market analysis
12.2 Mobile statistics
12.2.1 Subscriber statistics
12.2.2 Mobile data services
12.2.3 Mobile broadband
12.2.4 Forecasts mobile subscribers 2016; 2018; 2021
12.3 Regulatory issues
12.3.1 Mobile Number Portability (MNP)
12.3.2 Spectrum auctions
12.3.3 Tariffs
12.3.4 International roaming
12.3.5 Mobile Termination Rates (MTRs)
12.4 Mobile infrastructure
12.4.1 Digital networks
12.5 Other infrastructure developments
12.5.1 Mobile satellite services
12.5.2 Tower infrastructure
12.5.3 Voice-over-LTE (VoLTE)
12.6 Major mobile operators
12.6.1 TTCL
12.6.2 Vodacom Tanzania
12.6.3 Bharti Airtel (formerly Zain, Celtel)
12.6.4 Millicom Tanzania (Mobitel, Tigo)
12.6.5 Zanzibar Telecommunication (Zantel)
12.6.6 Viettel
12.6.7 Mobile Virtual network Operators (MVNOs)
12.7 Mobile content and applications
12.7.1 Money transfer, m-banking
12.7.2 Mobile TV
12.7.3 M-health
12.8 Handsets
13. Related reports
Table 1 Country statistics Tanzania 2015 (e)
Table 2 Fixed-line network statistics 2015
Table 3 Internet provider statistics 2015
Table 4 Internet user statistics 2015
Table 5 Mobile statistics 2016 (Mar)
Table 6 National telecommunications authority
Table 7 Interconnection rates 2012- 2017
Table 8 TTCL financial data 2010; 2012 - 2014
Table 9 Historic - Fixed lines in service by operator and teledensity 1999 - 2009
Table 10 Fixed lines in service by operator and teledensity 2010 - 2016
Table 11 TTCL fixed lines in service 2010- 2016
Table 12 Fixed lines in service 1995 - 2016
Table 13 International bandwidth 2001 - 2014
Table 14 Historic - Internet users and penetration rate 1999 - 2009
Table 15 Internet users and penetration rate 2010 - 2016
Table 16 Internet users and penetration rate 2005 2016
Table 17 Historic - Fixed-line internet subscribers 2001 - 2016
Table 18 Fixed-line broadband subscribers 2005 - 2016
Table 19 Internet cafes in service 2008 - 2014
Table 20 Cable modem broadband subscribers 2005 - 2015
Table 21 Fixed wireless internet subscribers 2011 - 2015
Table 22 Pay TV subscribers by platform 2010 - 2014
Table 23 Historic - Mobile subscribers and penetration rate 1995 - 2009
Table 24 Mobile subscribers and penetration rate 2010 - 2016
Table 25 Mobile voice subscriber market share by operator 2011 - 2016
Table 26 Average use of services per subscriber 2012 - 2014
Table 27 SMS traffic 2012 - 2016
Table 28 Active mobile broadband subscribers and penetration rate 2008 - 2016
Table 29 Mobile internet subscribers 2011 - 2016
Table 30 Forecast mobile subscribers 2016; 2018; 2021
Table 31 Average mobile tariffs 2005 - 2016
Table 32 TTCL mobile subscribers 2006 - 2016
Table 33 Vodacom Tanzania subscribers 2000 - 2016
Table 34 Vodacom Tanzania active subscribers 2011 - 2015
Table 35 Vodacom Tanzania ARPU ($) 2003 - 2014
Table 36 Vodacom Tanzania ARPU (TZS) 2011 - 2015
Table 37 Airtel subscribers 2002 - 2016
Table 38 Zain Tanzania ARPU 2002 - 2009
Table 39 Millicom Tanzania mobile subscribers 2000 - 2016
Table 40 Zantel mobile subscribers 2000 - 2016
Table 41 Viettel (Halotel) mobile subscribers 2015 - 2016
Table 42 Mobile money subscriptions 2015 - 2016
Chart 1 Fixed lines in service by operator and teledensity 2005 2016
Chart 2 Mobile subscribers in Tanzania 2005 - 2016
Exhibit 1 Licences issued under the new CLF 2006 - 2012
Exhibit 2 Emergency rescue scheme for Lake Victoria

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