Telecoms, Mobile and Broadband - Market Insights, Statistics and Forecasts- Tanzania

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 Service Fund

4.10 Foreign ownership restrictions

4.11 Registration of subscriber details

4.12 Mobile Number Portability (MNP)

4.13 Universal Communication Services Access Fund (UCSAF)

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 Cable modem

8.4 Pay-TV

8.5 Wireless broadband

8.5.1 iBurst

8.5.2 EV-DO

8.5.3 WiMAX

8.5.4 Mobile broadband

8.5.5 Satellite broadband

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

10.1.2 Tower infrastructure

10.2 Major mobile operators

10.2.1 TTCL

10.2.2 Vodacom Tanzania

10.2.3 Bharti Airtel (formerly Zain, Celtel)

10.2.4 Millicom Tanzania (Mobitel, Tigo)

10.2.5 Zanzibar Telecommunication (Zantel)

10.3 Tariffs

10.3.1 Special regional tariffs

10.3.2 Free international roaming

10.3.3 Price war 2010

10.3.4 Mobile Termination Rates (MTRs)

10.3.5 Mobile Number Portability (MNP)

10.4 Mobile data services and pricing

10.4.1 Third Generation (3G)

10.4.2 Long-term Evolution) (LTE)

10.4.3 Blackberry

10.4.4 Mobile money transfer, m-banking

10.4.5 Mobile TV

10.4.6 Mobile satellite services

11. Forecasts

11.1 Forecasts mobile market 2014, 2017

11.2 Notes on scenario forecasts

12. Related reports

Table 1 Country statistics Tanzania 2014 (e)

Table 2 Fixed-line network statistics 2014 (Jun)

Table 3 Internet provider statistics 2013

Table 4 Internet user statistics 2014 (e)

Table 5 Mobile statistics 2014 (Jun)

Table 6 National telecommunications authority

Table 7 Interconnection rates 2012- 2017

Table 8 Historic - Fixed lines in service by operator and teledensity 1999 - 2004

Table 9 Fixed lines in service by operator and teledensity 2005 - 2014

Table 10 International bandwidth 2001 - 2013

Table 11 Historic - Internet users and penetration rate 1999 - 2004

Table 12 Internet users and penetration rate 2005 - 2014

Table 13 Internet users and penetration rate 2005 2014

Table 14 Internet subscribers 2008 - 2014

Table 15 Historic - Fixed-line internet subscribers 2001 - 2007

Table 16 Fixed-line broadband subscribers 2005 - 2014

Table 17 Cable modem broadband subscribers 2005 - 2014

Table 18 Active mobile broadband subscribers and penetration rate 2008 - 2004

Table 19 Historic - Mobile subscribers and penetration rate 1995 - 2004

Table 20 Mobile subscribers and penetration rate 2005 - 2015

Table 21 Mobile voice subscribers by operator 2011 - 2014

Table 22 Mobile voice subscriber market share by operator 2011 - 2014

Table 23 TTCL mobile subscribers 2006 - 2014

Table 24 Vodacom Tanzania subscribers 2000 - 2014

Table 25 Vodacom Tanzania active subscribers 2011 - 2013

Table 26 Vodacom Tanzania ARPU ($) 2003 - 2013

Table 27 Vodacom Tanzania ARPU (TZS) 2011 - 2013

Table 28 Airtel subscribers 2002 - 2014

Table 29 Zain Tanzania ARPU 2002 - 2009

Table 30 Millicom Tanzania mobile subscribers 2000 - 2014

Table 31 Zantel mobile subscribers 2000 - 2014

Table 32 Average mobile tariffs 2005 - 2013

Table 33 Forecast mobile subscribers 2014; 2017

Chart 1 Fixed lines in service by operator and teledensity 2005 2014

Chart 2 Mobile subscribers in Tanzania 2005 - 2015

Exhibit 1 Licences issued under the new CLF 2006 - 2012

Exhibit 2 Emergency rescue scheme for Lake Victoria

Telecoms, Mobile and Broadband - Market Insights, Statistics and Forecasts- Tanzania

M-payment platforms gain traction with co-operation from banks

This 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, despite the global economic crisis which has affected many economies since 2008. For the period 2013-2017, the International Monetary Fund predicts stable GDP growth at around 7% per annum.

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 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 is approaching 70%, with annual subscriber growth of more than 20%. In recent years a price war among these players has adversely affected the smaller operators, which have suffered from customer churn.

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. 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, with both Vodacom and Smile Communications developing services based on Long-term Evolution (LTE) technology. A fast developing source of revenue is from mobile money transfer and m-banking services. In mid-2013 Bharti Airtel estimated that in Tanzania over 10% of GDP is transacted through mobile commerce.

In March 2013 the regulator reduced interconnection rates by 70%. Combined with a stringent registration policy, requiring new customers to have a physical ID, the reduced rates dampened growth in the number of mobile subscribers for some operators.

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.

Estimated market penetration rates in Tanzania's telecoms sector June 2014

Market | Penetration rate
Mobile | 77%
Fixed | 0.3%
Internet | 17%
(Source: BuddeComm based on various sources)

Market highlights:

Zantel extends 3G services to mainland Tanzania; AzamTV reports 34,000 satellite TV subscribers within three months of launch; Etisalat increases stake in ZanTel to 80%; 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 reviews ICT policy, considers measures to tackle cybercrime; Tigo integrates M-Pesa service with 17 major banks; Airtel, Zantel and Tigo agreed to allow customers to send money to each other using their various transfer systems; TTCL opens a new microwave link connecting Dar es Salaam and Zanzibar, doubling data capacity; Telecommunication Traffic Monitoring System delivering about $1 million in incoming international call taxes monthly; report update includes regulator's market data to June 2014, recent market developments.

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.