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Opportunities for mobile cellular operators, public data communication operators, closed user group data communication providers and internet service providers

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Tanzania telecommunication sector is undergoing extensive modernisation...

Profile

Tanzania’s teledensity is low, currently standing at 1.2 while the number of mobile phone subscribers stands at 81 per 10,000 inhabitants. The Public Switched Telephone Network (PSTN), using fibre optic, microwave and satellite-based links, is now over 95% digital. However, the coverage of the network infrastructure is limited to urban areas.Tanzania telecommunication sector is undergoing extensive modernisation. The sector is dominated by the Tanzania Telecommunication Company Ltd (TTCL), which is the main gateway to international exchanges. The sector was liberalised in 1993, opening the market for both local and foreign investment.

Currently there are five cellular mobile network operators licenced by Tanzania Communication Commission (TCC) which are MIC (T) Ltd (Mobitel); TRI Telecommunication Tanzania Limited (TRITEL); Zanzibar Telecommunication Company (ZANTEL), Vodacom (T) Ltd and Celtel Tanzania Ltd. Celtel, Vodacom, Mobitel and Tritel are operating in both the mainland and Zanzibar.Currently there are nine Public Data Communication Service Providers including Simbanet (T) Ltd a subsidiary of International Communication Systems (ICS), Datel (T) Ltd, Wilken Afsat (T) Ltd, Equant (T) Ltd., Fastcom Ltd., Soft-Tech Consultants Ltd., Tansat Ltd., Simunet Ltd. and Pocanet Ltd..

On February 28, 2001, the Government sold 35% of its TTCL shares to a consortium of Detecon of Germany and MSI of Netherlands. The investor is committed to increase the number of exchange connections from the present 173,000 to 850,000 in the next four years. TTCL is currently implementing a rural automation project, which is geared at ensuring that all district centers and suburbs (with economic potential) have full automation digital exchanges. Another programme underway is the Telecommunication Restructuring Programme (TRP). The TRP has managed to raise teledensity from 3 telephones per 1,000 inhabitants to 7 telephones per 1,000 people.


Regulatory Mechanism

As part of the government's initiative to restructure the communications sector, a regulatory body Tanzania Communication Commission (TCC) was established under the Tanzania Communications Act No.18 of 1993, and became operational in 1994. The Commission is charged with the responsibility of regulating the service providers in the postal and telecommunications sectors.

According to the provisions of Act No 18 of 1993 under section 9, the Commission has power of licensing and regulating telecommunication systems and services in the United Republic. The powers conferred on the commission under this sub-section include:

The right to issue licences and to regulate the establishment, installation, use, working, maintenance, development, construction, promotion, hiring and selling of telecommunication systems and services.


Opportunities

• Opportunities exist in modern technology provision and supporting services to the industry players.

• Other Opportunities include establishment of call centres and other voice operation, pre-press activities, imaging activities and high value added data processing and data capture.

• There are also opportunities for mobile cellular operators, public data communication operators, closed user group data communication providers, radio paging service providers and Internet service businesses.

For more information or if you have a particular project that you would like to implement, please contact us.

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Information Source: Tanzania Investment Centre
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