Use of smart phones still low in Tanzania

Dar es Salaam. Despite the increase in internet users to 35.8 million, the inadequate number of devices among Tanzanians remains a challenge, according to a recent Tanzania Communications Regulatory Authority (TCRA) report.

Stakeholders now want action from the government and mobile phone network providers, including subsidising the cost of devices to make them affordable to low-income earners.

The TCRA quarterly report, covering a period ending December 2023, indicates that the penetration of feature phones has reached 85.62 percent across the country.

But the penetration of smart phones is only 32.13 percent. However, smart phones play a crucial role in driving the adoption of telecommunication services, according to a recent report.

Smart phone adoption has increased very slightly by 1.42 percent from the 30.71 percent that was recorded in the year ending September 2023.

Handheld devices accounted for 2.75 percent, with a report showing that other devices such as modems, portables (including PDAs), tablets, modules, WLAN routers, dongles, IoT, and vehicle wearables were each registered at below one percent.

TCRA and service providers were collaborating to explore options for making smart phones more accessible at affordable prices for individuals who may otherwise be unable to afford them, according to the report.

The quarterly report reveals a notable surge in the number of internet users as compared to the last five years, noting that the user base has expanded from 25.7 million in 2019 to 35.8 million last year.

The number of internet users by December 2023, which is an increase from 25.7 million from the past five years

That indicates an average of 9.78 percent annual growth rate of internet subscriptions, according to the TCRA report released early this month.

“This significant increase in internet users due to substantial investments in the telecommunication infrastructure has led to the extensive deployment of mobile broadband networks, covering expansive areas and enhancing accessibility for people across the region,” reads a part of the report.

The mobile broadband network signal coverage also increased by 86 percent for 3G compared to the 83 percent recorded in September.

The TCRA director of industry affairs, Mr Mwesiga Felician, highlighted the challenge of device adoption, saying that despite the government’s waiver of tax on gadgets, the utilisation rate remains relatively low.

“Plans are underway between the authority and service providers to explore ways of enhancing access to affordable smart phones, with the ultimate goal of boosting internet usage,” he said.

Regarding the industry’s status, he said, “In general, the market is progressing well, and we are on the right track. The government aims at achieving the 80 percent internet usage rate by 2025.”

The University of Dar es Salaam (UDSM) lecturer, Dr Moses Ismail, said it was high time that the government and mobile phone operators subsidised the provision of devices for the majority of Tanzanians who couldn’t afford them.

He said the internet has been very successful in enabling the population to access 3G and 4G internet technologies.

Dr Ismail said that was the challenge the government and mobile phone stakeholders needed to work on for the country to reap big benefits from the sector.

He said there was a need for the government to review its tax waiver campaign on digital devices, noting that the impact was yet to be seen as devices were still accessible at higher prices.

Additionally, Dr Ismail said the government should continue reducing and eliminating taxes, but importers should be closely monitored in order to ensure tax exemptions prompt significant price reductions for gadgets.

Similarly, he was of the view that the government can appoint a special agent to ensure rural area dwellers buy mobile phones at cheaper prices.

According to Dr Ismail, the government and mobile phone service providers can enter into tax-exemption agreements to ensure that revenue plays an important role in subsidising the prices of smart phones for low-income citizens.

“Here at the UDSM, we have embarked on research in this area in order to advise the government. This is because digital development cannot be successful if only a few Tanzanians are involved,” he said.

Last year, the Information, Communication and Information Technology minister, Mr Nape Nnauye, said the government would continue increasing investment in the sector.

He said the communication industry was guided by the five pillars, namely, affordability, accessibility, safety, impact on users, and quality, noting that the government will continue to ensure the stability of the aforementioned components.

“In 2024, Tanzanians should expect a lot from the sector, including launching our satellite in order to improve communications and enable everybody to efficiently and effectively access the service,” he said.