Executive summary
Tanzania,s economy has been showing solid growth rates of between 5% and 8% every year since 2000. The International Monetary Fund predicts only a moderate decline of GDP growth to 5% in 2009 as a result of the global economic crisis, before 7% and more will be achieved again from 2011 onwards.
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 principals 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 seven operational mobile networks, with four additional players licensed under a new converged regulatory regime. Growing at more than 40% per annum, the mobile market passed the 14 million mark in mid-2009 with four major operators: Vodacom, Zain, Tigo and Zantel. At a penetration level of less than 40%, growth is set to continue. At the same time, however, the average revenue per user continues to fall.
A new converged licensing regime introduced in 2006 has brought a large number of new players into the market. The liberalisation of Voice over Internet Protocol telephony as well as the introduction of third generation 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.
The arrival of the first fibre optic international submarine cable to the country,s shores in July 2009 is set to revolutionise the market which up to that point completely depended on expensive satellite connections. A second cable is expected to go live in 2010. In parallel, the government has embarked on a national fibre backbone rollout to connect population centres around the country.
Key highlights:
Market analysis 2009;
Comparison with other countries in the region in terms of GDP, mobile, fixed and Internet market penetration;
Profiles of major players in all market sectors;
7th mobile network has launched;
ARPU has fallen below US$5 per month for some operators;
Third 3G mobile service launched;
First fibre optic international submarine cable reaches the country, revolutionises market;
Government embarks on national fibre backbone rollout;
National telco is looking for new direction, management.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;
Regulatory environment and structural reform;
Major players (fixed, mobile and broadband);
Infrastructure development;
Mobile voice and data markets, including 3G;
Average Revenue per User (ARPU) trends;
Internet development and pricing;
Broadband, including 3G mobile;
Convergence (voice/data, fixed/wireless/mobile).
Table of Contents
1. Executive summary
2. Key statistics
3. Telecommunications market
3.1 Market analysis 2009
3.2 Regional statistical comparison
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 Telecom sector liberalisation
4.6.1 Converged licensing framework (CLF) 2005
4.6.2 International gateways
4.7 Interconnection
4.8 Universal access fund
4.9 Foreign ownership restrictions
4.10 Registration of subscriber details
5. Fixed network operators
5.1 TTCL
5.1.1 Privatisation and exclusivity period 2000-2005
5.1.2 SaskTel management contract 2007-2009
5.2 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)
8. Broadband market
8.1 Overview
8.2 Asymmetrical Digital Subscriber Line (ADSL)
8.3 Wireless broadband
8.3.1 iBurst
8.3.2 EV-DO
8.3.3 WiMAX
9. Convergence
9.1 Voice over Internet Protocol telephony
10. Mobile communications
10.1 Overview of Tanzania's mobile market
10.1.1 Mobile statistics
10.2 Major mobile operators
10.2.1 Millicom Tanzania (Mobitel, Tigo)
10.2.2 Vodacom Tanzania
10.2.3 Zain Tanzania (formerly Celtel)
10.2.4 Zantel
10.3 Tariffs
10.3.1 Special regional tariffs
10.3.2 Free international roaming
10.4 Mobile data services and pricing
10.4.1 Third generation (3G)
10.4.2 M-payment, m-banking
11. Related reports
Table 1-Country statistics Tanzania-2009
Table 2-Telephone network statistics-June 2009
Table 3-Internet provider statistics-June 2009
Table 4-Internet user statistics-2008
Table 5-Mobile statistics-June 2009
Table 6-National telecommunications authority
Table 7-GDP per capita in Tanzania and other countries in the region-2009
Table 8-Mobile penetration in Tanzania and other countries in the region-March 2009
Table 9-Internet user penetration in Tanzania and other countries in the region-2008
Table 10-Fixed-line penetration in Tanzania and other countries in the region-2008
Table 11-Fixed-lines in service by operator and teledensity-1995-2009
Table 12-Internet users and penetration rate-1996-2008
Table 13-TTCL ADSL pricing-2009
Table 14-Raha.com ADSL pricing-2009
Table 15-Zantel ZConnect EV-DO postpaid mobile data pricing-2009
Table 16-Mobile subscribers and penetration rate-1995-2009
Table 17-Mobile subscribers by operator and annual change-June 2009 (TCRA)
Table 18-Mobile subscribers by operator, technology, annual change-March 2009 (GM)
Table 19-Vodacom Tanzania ARPU-2003-2009
Table 20-Zain Tanzania ARPU-2002-2009
Table 21-Vodacom Tanzania mobile data pricing-2009
Exhibit 1-Licences issued under the new CLF-2006; 2008; 2009
