Market Report, "Tanzania Telecommunications Report Q2 2010", published

March 15, 2010 - PRLog -- Tanzania's mobile market appears to be increasingly dominated by the larger players, with smaller mobile operators like TTCL and notably Zantel really struggling. Zantel in particular has lost subscribers in both Q109 and Q209. It is just starting to fight back, however, with new marketing campaigns offering free SMS and reduced call prices. The company claims it is starting to work, but Q309 and Q409 results, as reported by the Tanzania Communications Regulatory Authority (TCRA) will tell. Growth in Tanzania's mobile market was a little muted in Q109, thanks to the sheer scale of Zantel's losses, which were over 500,000 mobile subscribers that quarter. Although Zantel, and indeed TTCL, did not recover in Q2, the market as a whole pretty much did. The net additions to the three leading mobile operators, Vodacom, Zain and Tigo, were not bad in Q109, and picked up in Q209, so BMI is confident that the market in general is not slowing in its growth unduly. However, the unfortunate blip in the first quarter has weighed on our forecasts. Tanzania caused a stir when TTCL became the first major operator in East Africa to slash broadband prices following the submarine cable connections. The switching on of the SEACOM cable has caused excitement all around East Africa, but especially in the places where it actually lands, including Tanzania. The provision of plentiful, reliable, inexpensive international bandwidth is being credited with ushering in a new era of broadband connectivity. However, the improvements that it can bring are unlikely to be felt immediately, as there are many other developments that need to take place in order for any kind of broadband revolution to take place. As well as the international bandwidth, Tanzania needs to keep developing its internal, high-capacity backbone infrastructure in order to facilitate the expansion and improvement of broadband access to more of the population. Still, the fact that the cable is in place is one piece of the puzzle, and the rest will slowly start to follow. The 50% cut in prices that TTCL put in place should see an increase in take up, not as dramatically as a 50% cut in mobile charges would engender, since computers are more expensive than mobile handsets, and the range of availability is also more limited than for mobile services.

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