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Tanzania’s TTCL enters the crowded mobile money market
Saturday, August 20, 2016 8:25:26 AM America/New_York
The government has actively embraced competition in the telecom market, and has encouraged the private sector. Foreign participation has also been encouraged to promote economic growth and social development. Policy reforms have led to the telecom sector becoming among the most liberal in Africa. However, high import tariffs on telecoms equipment and taxes on telephone facilities by various authorities are still placing a burden on investors and operators.
Tanzania has two fixed-line operators (TTCL and Zantel) and eight operational mobile networks, with four additional players licensed under a new converged regulatory regime. With four major operators – Vodacom, Bharti Airtel (formerly Zain), Tigo and Zantel – mobile penetration has broached 80%. In recent years a price war among these players has adversely affected the smaller operators, which have suffered from customer churn.
The converged licensing regime has brought a large number of new players into the market. The liberalisation of voice over internet protocol (VoIP) telephony as well as the introduction of third and fourth generation (3G, 4G) mobile services and wireless broadband networks is boosting the internet sector which has been hampered by the low level of development of the traditional fixed-line network.
Following the launch of 3G and LTE mobile broadband services, the mobile networks have become the leading internet service providers. Operators are hoping for revenue growth in the mobile data services market, given that the voice market is almost entirely prepaid and voice ARPU continues to fall. To this end they have invested in network upgrades. A fast developing source of revenue is from mobile money transfer and m-banking services……….
For more information see – Tanzania - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses