Business Monitor International


Tanzania Telecommunications Report

Published 26 February 2014

  • 89 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Tanzania Telecommunications Report

BMI View: BMI's view that new taxes on telecoms services will have a negative impact on the sector played ou t in the second half of 2013 , with mobile market leader Vodacom revealing an 86% increase in corporate tax for the six months to September 2013 compared to the same period in 2013 . Although the government is introducing measures to relieve the pressure on operators, we retain the view that the country's fiscal policies will shape operators' network investment strategy in 2014 and beyond in view of the need to maintain an acceptable level of profitability amid rising costs and declining revenue growth. We expect the government to invest more in higher value services in urban areas to boost revenue growth as opposed to network expansion to rural areas where ARPUs are expectedly lower.

Key Data

  • The mobile sector contracted by 1.2% in 9M13, compared to growth of 1% the year before, owing significant net subscription losses in Q213.

  • Mobile ARPU appreciated for seven out of the last eight quarters, with q-o-q growth of 11.6% and y-o-y growth of 17% in Q313.

  • M-commerce users have continued to expand, Vodacom reporting approximately 5.5mn M-PESA users on its network, almost half of its total subscriber base.

  • Growth in the fixed-line sector remains volatile, with a decline of 5.2% in Q313, compared to growth of 4.9 during the same period a year earlier.

Risk/Reward Rating

Tanzania's score remained unchanged at 39.4 this quarter, although the country dropped one place to 17th position on the BMI telecoms Risk/Reward Ratings (RRR) table for Sub-Saharan Africa. Tanzania's rating is boosted by its comparatively high Industry Risks score, although this could be negatively affected if the government succeeds in reclaiming full ownership of incumbent telecoms operator Tanzania Telecommunications Company Limited (TTCL). Tanzania's weakest rating is in the industry rewards category, reflecting a sharp slowdown in mobile subscriptions growth and...

Table of Contents

BMI Industry View
7
SWOT
9
Mobile
9
Wireline
11
Political
13
Economic
14
Business Environment
16
Industry Forecast
17
Mobile
17
Table: Telecoms Sector - Mobile - Historical Data & Forecasts
17
Fixed Line
20
Table: Telecoms Sector - Fixed Line - Historical Data & Forecasts
20
Broadband
22
Table: Telecoms Sector - Internet - Historical Data & Forecasts
22
Industry Risk Reward Ratings
24
Industry Risk/Reward Ratings
24
Table: Sub-Saharan Africa Risks/rewards ratings Q214
27
Market Overview
29
Mobile
29
Regional Perspective
29
Table: Regional Comparison, 2013
30
Mobile Growth
31
Table: Tanzania Mobile Market
32
Market Shares
33
Networks
38
Mobile Content/Value-Added Services
42
Table: Market Overview
46
Table: Vodacom
47
Table: Airtel
47
Table: Zantel
48
Table: Tigo
48
Table: TTCL
48
Table: Benson & Sesatel*
49
Africa Mobile Content
50
Table: Selected Non-Voice Service Deployments In 2013
53
Wireline
55
Industry Trends And Developments
60
Regulatory Development
62
Table: Tanzania Regulatory Bodies And Their Responsibilities
62
Company Profile
66
TTCL
66
Vodacom Tanzania
70
Regional Overview
75
Huawei
75
Table: Huawei's Major Contract Wins In Sub-Saharan Africa, 2013
77
Demographic Forecast
79
Table: Tanzania's Population By Age Group, 1990-2020 ('000)
80
Table: Tanzania's Population By Age Group, 1990-2020 (% of total)
81
Table: Tanzania's Key Population Ratios, 1990-2020
82
Table: Tanzania's Rural And Urban Population, 1990-2020
82
Glossary
83
Table: Glossary Of Terms
83
Methodology
85
Industry Forecast Methodology
85
Sources
86
Risk/Reward Ratings Methodology
87
Table: Risk/Reward Ratings Indicators
88
Table: Weighting Of Indicators
89

The Tanzania Telecommunications Report features Business Monitor International (BMI)'s independent industry forecasts on the future strength of Tanzania's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.

BMI's Tanzania Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Tanzania.

Key Benefits

  • Benchmark BMI's independent telecoms industry forecasts for Tanzania to test other views - a key input for successful budgeting and strategic business planning in the Tanzanian telecoms market.
  • Target business opportunities and risks in Tanzania's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Tanzania.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts and views, covering the ICT, fixed-line, mobile (including 3G), internet and broadband markets.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.

Business Environment Ratings

BMI's Telecommunications Business Environment Ratings provides a country-comparative Risk-Reward Ratings index aimed at investors (vendors, operators and suppliers) in the regional telecoms market.

The ratings methodology makes sophisticated use of more than 40 industry, economic and demographic data points.

BMI Industry Forecast Scenario

Historic data series and forecasts to end-2018 for all key industry indicators (see list below) supported by explicit assumptions, plus analysis of key downside risks to the main forecast.

  • Fixed-Line Telephony - Telephone lines ('000); telephone lines/100 inhabitants.
  • Cellular Telephony - Mobile phone subscribers ('000); mobile phone subscribers/100 inhabitants; mobile phone subscribers/100 fixed line subscribers.
  • Internet Markets - Internet users ('000); internet users/100 inhabitants; broadband internet subscribers ('000); broadband internet subscribers/100 inhabitants.

Market Data Analysis

Detailed market analysis of the mobile, mobile content, fixed line and internet segments, broken down into:

  • Market Data - Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
  • Technology/Service Rollout - Analysis of rollout/adoption of new technology, such as 3G, WiMAX, IPTV, pay-TV, LTE and value-added handset services (gaming, music, video, apps etc.).
  • Mobile Content - The latest trends in content and services available and being introduced by mobile operators. Including a timeline of all the latest major mobile content developments.
  • Company Database - A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).

Regulatory Environment

Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. The latest updates in the market's development and regulatory rulings.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.

The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc