MORE IS NEEDED TO ENSURE LONG-TERM GROWTH FOR THE TELECOMS SECTOR

The new year is a time when people often reflect on the last twelve months, assessing both successes and shortfalls, and how to make improvements for the next year.

With the start of a new decade however, people are now reflecting on the past ten years, as well as looking forward to what the new decade may bring.

The 2010s undoubtedly brought many changes. One of the starkest of these changes has been the continued rise of technology, primarily mobile technology.

Nowadays, mobile phones and access to mobile technology are relatively commonplace. There are currently over 25 million unique mobile users in Tanzania.

Did you know that in 2010, however, there were as few as 15 million?

Experts have suggested that by 2025, this figure will exceed 35 million, reaching nearly 50 per cent of the adult population.

The expansion of the telecoms industry is perhaps most notable through the rapid expansion of mobile internet.

Internet penetration has quadrupled this decade.

Back in 2010, only 5 percent of the population was connected to the mobile internet, and only a further 5 per cent lived in regions serviced by 3G networks.

Flashforward to the present day – over 60 percent of the country lives in regions connected to 3G and now approximately 1 in 5 people are connected to mobile internet.

This progress is massive.

Yet it cannot be taken for granted. This did not happen overnight, but rather was the result of strategic and consistent investment throughout the decade.

The right investment environment is one of the most important factors in guaranteeing this kind of sustained growth and progress in the sector.

Many things contribute to the quality of the investment environment.

For example, the number of players that operate is often cited as a key factor. It has long been observed that a consolidated market can help safeguard long-term, sustainable investment.

2019 saw progress in this area, with Smart Telecoms shutting its doors in October and the decision for Tigo and Zantel to combine in November.

But more is needed to encourage long-term growth.

In order for this sector to continue thriving, we must maintain a favourable business environment, which will in turn help encourage future investment, allowing telcos to expand the services they officer.

2019 was a strong year for the telecoms sector in Tanzania.

Let’s hope that this sets the sector up well for the 2020s.

Imran Kindamba
Mbeya University of Science & Technology (MUST)
09.01.2020