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Tuesday 7 January 2020

TANZANIA’S TELECOMS SECTOR A MODEL IN SUB-SAHARAN AFRICA BUT MORE CAN BE DONE TO IMPROVE IT

As the festive season ends, we are all more thankful than ever for the technology that connects us to our loved ones.

Whether or not you have been able to travel to visit your family and friends, you will almost certainly have been able to talk to them, or even see them thanks to video calls.

The mobile sector has truly transformed our lives on a day-to-day basis. We are certainly lucky to have access to this technology.

Tanzania’s mobile sector in particular has become a model in sub-Saharan Africa thanks to the growth in mobile phone usage and mobile internet connectivity across the country.

Nonetheless, there is always room for improvement.

Tanzania has one of the highest numbers of telecommunications companies. This might sound like a positive thing. However, a more consolidated sector would bring many more benefits than we already have.

If some of our telcos were to combine their operations, it would allow them to increase their margins and have more money to invest in the services they offer to customers. This could feasibly mean improved network infrastructure as well as even faster 4G being rolled out across the country.

This process of consolidation has started to an extent. In October, Smart Telecoms officially shut its doors, creating a 6-company operating system.

In November last year, two of our major telecommunications companies – Tigo and Zantel - also decided to combine their operations. This was great news for the sector and means we now have a total of five telcos – a healthier amount although with room for improvement still.

This combination means that customers will benefit from the services of both operators.

Perhaps most importantly, however, it will allow the companies to invest more into their current operations and services, meaning that customers will soon benefit from a whole host of improved services.

As the new year begins, let us hope for similar improvements to the sector that will allow us to keep connecting to our family and friends around the world.

Haika Kessy
UDBS UDSM
07.01.2020

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