Abstract
Growth in Tanzania’s mobile market was very strong in 2008. Although the
end of year total fell slightly
short of our estimation, this was by less
than 0.1%, so the discrepancy is negligible. There were just under
5mn net
additions in the year as a whole. Market dominator Vodacom is seeing a
continued erosion of its
market share, demonstrating the healthy
progression of competition in the market. Vodacom is still just
hanging on
to a share above 40%, but BMI expects it will have slipped below this level
during Q109.
Second ranked Zain had a particularly strong Q408, and
managed to gain a little on Vodacom, ending the
year on a 29.0% market
share, which was an improvement on 27.5% in June 2008. This operator’s
market
share has been generally fluctuating just below 30% for the last
couple of years, and does not seem to be
seeing the gradual decline that
Vodacom is experiencing. Tigo, still the third ranked operator, saw a
slight
faltering to its progress in the final quarter of 2007, seeing a
reduction in market share for the first time in
over six quarters, while
Zantel continues to make steady progress in its bid to catch it. The other
operators remain very minor players.
2008 saw new operators added to the
market, and even more being licensed. In November 2008, locally
backed
companies MyCell and Egotel were licensed as mobile operators. In addition,
several other
companies received licences to provide fixed-line services,
probably over fixed-wireless technologies,
since investing in fixed-line
networks is so costly.
2008, especially the second half, saw a dramatic
drop-off in the number of fixed lines in service.
According to the
telecoms regulator, the Tanzania Communications Regulatory Authority,
Tanzania’s
fixed-line incumbent Tanzania Telecommunications Company
(TTCL) lost over 41,000 subscribers
during 2008, which, given the very
small size of the market as a whole, makes up a not inconsiderable
portion
of its subscriber base.
Tanzania’s broadband market is
underdeveloped, even for East Africa. Low levels of internet usage
suggest
the technology is yet to have an impact on the population. New investments in
WiMAX and 3G
mobile broadband may yet be key to increasing the influence
of the worldwide web.
| 
View Cart
