Mobile Technology in Tanzania

By Leo Mutuku
iHub
  Published 13th January 2012
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Mobile Technology in Tanzania

The mobile market in Tanzania isgrowingin asteadfastmanner and has managed to break the 50% penetration barrier as of mid June 2011. While the Tanzania Communication Regulation Authority (TCRA)are yet to release publicly statistics on the mobile sector beyond June 2011, it isestimatedthat over 22 million Tanzanians are connected via mobile.

However, this population of mobile subscribers, according to research is largely concentrated in urban areas where anestimated3o% of the population live. The implications of this is that thereexistsa large untapped market in the rural areas whichcreates anopportunityforstrategic growth for TelCos and other mobile service providers. It is forecast that by 2016 there will be about 38 million mobile subscribers in Tanzania, reflecting a penetration rate of 70% and internet and broadband penetration will reach 29% and 3.3% respectively due to increasing access to wireless technologies.

Tanzania too was not spared by the price wars that characterized 2010. However, thetariffshad settled by June 2011 to an average of about Kshs. 2.50 for onnet calls with an errant Kshs. 7* being charged by the national provider TTLC. Out of the 7 MNOs, most of onnet calls were made from Tigo, most offnet calls from Airtel while most international calls were made from Vodacom. These MNOs are expected tocontinueproviding high value services such as data mainly in the high income urban areas due to general low Average Revenue Per User(ARPUs) and Minutes of use (MoUs) as the market is characterized by a limited correlation between subscriber growth and revenue growth.

*(All values, are converted equivalents as of Jan 2012)

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