Data a new battlefield for telecom operators

Dar es Salaam. Data is increasingly becoming the battleground for telecommunication firms as they seek to get a piece of the business cake that comes with shifting trends of Tanzanian consumers.
Vodacom Tanzania Plc reported this week that its data usage per customer rose by 59.7 percent, attributing the rise to its sustained investment programme that aims at delivering a better data experience for customers. The 59.7 percent growth meant that each customer used an average of 1.4GB per month.
“Data services remain a key growth driver and are central to our commitment of connecting Tanzanians to a better future,” Vodacom says in its trading updates to investors.  Not just Vodacom, the majority of telecommunication companies in the country have been leaping off data sales as the result of increasing demand, as the Tanzania Communication Regulatory Authority (TCRA) reports the number of internet users in the country reached 27 million. Attractive demand has pushed the telecoms to increase their focus and investments into pushing data traffic in their networks. In the case of Vodacom, the company was able to increase data penetration to 51.9 percent, as a result of network investment, data campaigns and enhancing data experience for its customers.
Being one of the key sources of the company revenue, the other being mobile money service M-pesa, Vodacom decided to introduce a number of digital services, and affordable smart devices such as the US$25 smartphone and the personalised bundles offering to customers through our innovative ‘Just 4 You’ platform.
According to the Vodacom update report, the increased demand for data has also facilitated the company’s strong commercial performance in the quarter to December 2020. Compensating for the barred customers heightened regulatory requirements in 2020.
“Quarterly trends are encouraging with 139 000 additional data customers using the Vodacom network,” the update reads in part. The growing demand is also seen as an opportunity by other telecom firms such as Tigo Tanzania and Airtel Tanzania, which introduced several data services offers that eyed to capture the market demand.
Such offers include the free one-year internet bundles for a smartphone purchase with Tigo, double data bundle offer for half a year when you subscribe with Airtel. In the Vodacom Annual report for 2019, released in March last year revealed that Vodacom leaped Sh180.8 billion in data revenue, an increase of 9.8 percent from the preceding year. “Data traffic grew by 14.6 percent, with significant growth coming in 4G traffic. This reflects strong demand for mobile data services and proves our investment case in enhancing customers’ data experience and increasing access to affordable smartphones and data services,” Vodacom said.