Industry - Communications

An overview of the Communications sector in Tanzania

Tanzania's telecommunications services have continued to improve due to efforts of the Tanzania Telecommunications Company (TTCL) and participation of private companies, including Celtel, Tigo, Vodacom and Zantel. TTCL is the sole provider of basic fixed services on the mainland, while Zanzibar Telecommunications Limited (Zantel) operates fixed services for the islands of Zanzibar.

For many years, TTCL, a state-owned operator, had enjoyed a monopoly over international and domestic basic voice services on mainland Tanzania. However, TTCL is now in competition for these basic services with Zantel, which has been licensed to provide local and international fixed and mobile services in the mainland. Zantel is a venture between the Government of Zanzibar, STET International and local investors. The company will utilise GSM-based technology to provide both fixed and mobile services.

The cellular sector and public data communications, including Internet and radio sub-sectors, are open to competition. Foreign ownership up to 51% is permitted in any of the above non-basic telecom service categories. Basic telephony on the mainland, however, continues to be provided via TTCL. All service providers are subject to universal service obligations as determined by the Tanzania Communications Commission (TCC).

Adesemi Tanzania Limited operates a network of public phones and offers paging services as well. There is also growing competition in public data networks, with three companies currently licensed to provide national public data services: Datel Tanzania Limited, Wilken Afsat Tanzania and the SITA Group.

In the data services arena, Datel Tanzania provides Internet connectivity and data communication services nationwide using WLL and VSAT technology.

The liberalisation of the telecommunications sector has created vast opportunities for investment in this market. International investors have had a strong positive influence over the growth of the industry. The greatest challenge is the rural areas that have less than 20% of the total communications infrastructure to serve close to 80% of the population.