TIGO TANZANIA - ZANTEL MERGER SET TO IMPROVE TANZANIA’S TELECOMMUNICATION SECTOR

By Ben Ndunguru, UDSM

The telecommunications sector in Tanzania has grown considerably in the last decade.

During this time, networks have expanded and mobile connectivity has become an everyday service for many Tanzanians, accessible to the majority rather than just the privileged few. This progress continues today as companies innovate and bring new products and offerings to their customers.

As a result, these companies have gone beyond providing us with a way of communicating with family and friends and have revolutionised the we save money, pay our bills and carry out our daily lives.

A good example is that of Tigo Tanzania. Tigo’s mobile-money service, Tigo Pesa, allows customers to send and receive money, without needing to travel and queue at their bank. Similarly, shop owners can apply to become a Tigo Pesa Merchant, allowing them to accept payments from over 16 million mobile money users across Tanzania.

In addition, Tigo is one of the leading companies for 4G services, providing Tanzania’s widest 4G data network and customers with its superfast 4G+ technology. This service ensures faster streaming of videos and improved performance for video conferencing.

However, there is a risk that Tanzania’s telecommunications sector is becoming overly crowded, with an unhealthy number of competitors which could stifle future innovation and the services which customers enjoy.

In other sectors, a high number of competitors is considered a benefit for customers. Unfortunately, this is not the case within the telecommunications sector. In fact, research shows that reducing excess competition in the telecoms sector enables companies to increase profit margins that are required for investment in next-generation networks.

Fortunately, there has been discussion recently of a merger between two of the country’s major telecommunications companies – Tigo Tanzania and Zantel.

This will be welcome news to Zantel customers, who will be able to access the full range of premium services that are currently enjoyed by Tigo customers. In addition, a merger will help ensure that Tanzania’s telecommunication sector continues to innovate and offer the best possible services to people across the country.