Consolidating Tanzania's telecommunications market will create an even more efficient sector

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Tanzania is experiencing a digital transformation, which is evident by the growing number of people connected to communications and using internet services.

This is having a profound impact on the lives we lead. At the centre of this transformation is mobile technology – connecting more people with each other and to the internet than ever before.

Telecommunications firms themselves are driving forward this change.
Significant investments in mobile network infrastructure and services demonstrate their commitment to our country’s development goals.

For example, in the last three years, Tigo Tanzania has invested almost TZS 1 trillion to digitalise its infrastructure, in a bid to grow its business and help drive the country towards its national target of becoming semi-industrialised by 2025.
The company has described itself as working to build the digital lifestyle in Tanzania and their track record to date demonstrates their determination.
To take one example, Tigo were the first mobile operator in Tanzania to roll out 3G, 4G and 4G+ technology. Tigo customers have been the first to enjoy the fast network speed provided by this technology.

Yet despite the start of this digital transformation, experts have started to note that a number of industry-level challenges exist that risk dampening future investment levels, which in turn would limit the development of services available to consumers.

One challenge in particular which has been highlighted recently is how overcrowded the telecoms market in Tanzania is. Did you know there are eight mobile operators in Tanzania?

Consolidating the market would create an even more efficient sector.
Merging even just two of the current operators would mean these companies could free up more capital to reinvest into research and development of their services. Luckily this appears to be on our horizon. Two of Tanzania’s telecoms firms – Tigo Tanzania and Zantel – have expressed their intentions to merge operations. By merging operations, customers of both Tigo and Zantel would benefit from a stronger, broader network and would be able to enjoy services currently offered by either – including Tigo’s 4G and 4G+ network. This would ultimately mean a better experience for users across the board. Let’s hope consolidation is on the near horizon.

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