How to increase internet penetration in Tanzania
What you need to know:
- In order for Tanzania’s internet usage to grow, measures must be taken by both the private sector and government to enable wider penetration
Dar es Salaam. Urban planning and the tax rates levied on some internet services have been cited as factors slowing down the reach and usage of internet services for many Tanzanians.
As of March 2024, active mobile phone lines reached 72.5 million (a penetration rate of 111 percent), up from 47.7 million (a penetration rate of 78 percent) five years ago.
The number of internet users in the country has now reached 36.8 million, with mobile internet being the most popular access method, accounting for 24.4 million lines. 2G technology still has significant usage, with 12.25 million lines. Home fibre technology has 49,163 lines, and office fibre technology has 5,126 lines.
According to a report by the Tanzania Communications Regulatory Authority (TCRA), the number of lines that use the internet has increased by more than 5.1 million over the past year, an average annual increase of over 1 million lines.
By March 2024, 88 percent of Tanzanians had access to high-speed internet (at least 3G, 4G, and 5G). However, only 72 percent of the country’s area was covered by this network.
Regarding network distribution, Tigo’s chief technical officer, Mr Emmanuel Mallya, stated that many service providers have invested in ensuring network infrastructure is available. The remaining challenge is usage.
“For example, we have distributed 4G infrastructure to 94 percent of the population, which can serve many more customers than we currently have. However, the problem is that usage requires users to have devices that enable them to use the provided service,” said Mr Mallya.
Mr Mallya mentioned that if Tanzania wants to become fully digital, it must reduce the costs of investing in and using internet services, as seen in other rapidly advancing nations.
“We have an import duty of 20 to 28 percent on digital devices, which needs to be reduced. If we want to enjoy the fruits of digitalization, we must reduce or eliminate the fees for laying underground communication cables. For example, in Rwanda, this fee does not exist,” he said.
Tigo’s Chief Technical Officer Emmanuel Mallya (left), Chief Business Officer John Sicilima (centre), and Chief Commercial Officer Isack Nchunda attend a recent meeting in Dar es Salaam. PHOTO | SUNDAY GEORGE
Mr Mallya added that the government’s decision to remove this fee in the last budget brought significant relief, which he associates with the ease of the new fibre service for homes and offices introduced by Tigo in April this year.
“The reduction of this fee from $1000 per kilometre to $100 has brought great relief. This is perhaps why we have been able to offer this service, which we expect to provide in all major cities, starting with those in greatest need,” he said.
Mr Mallya also pointed out that another challenge in fibre distribution is the area for laying cables, as many urban areas are not well planned. However, by cooperating with other authorities, their distribution, which started in Mbweni, Dar es Salaam, has progressed.
“As usual, we focus on resilience to ensure our services are reliable at all times. I think you saw that even during the internet disruption caused by the underwater cable cut, we remained stable,” Mr Mallya said.
Speaking about Tigo’s Fiber service for homes and offices, chief commercial officer Isack Nchunda said the aim is to continue including more people in the digital world in an era where the use of such technology is growing rapidly.
“Our services have evolved beyond just making calls and sending messages, unlike when we started almost three decades ago. Many things have changed, from technology to the growing need for high-speed internet for various activities,” Mr Nchunda said.
He explained that this is why, in addition to investing in 4G and 5G technologies, they have introduced fibre services that ensure faster speeds, connecting everyone in a home or office without limits.
“The goal is to connect all urban residents within three years, even those who cannot afford to buy modern phones. That’s why Tigo has a scheme to lend phones to users, who can then pay in instalments,” Mr Nchunda said, noting that this aligns with making services more affordable.
Tanzania is keeping pace with ever-evolving global technology. “In the era of artificial intelligence (AI) and robotics, things are changing rapidly. This is why even predicting the next ten years is not easy, but we want to be ready whenever our customers need services from us,” Mr Nchunda said.
Chief Business Officer John Sicilima’s focus is to connect everyone and every business in the digital economy, which he sees as possible if the government reduces taxes on electronic devices to make them more accessible.
“If we want to see business growth and ensure profitability, then we must support SMEs and large businesses,” he said.
He mentioned that apart from fibre, the telco offers data storage services (data centres), bulk SMS services, and mobile money services.
Regarding the investment environment in the country, Mr Sicilima said Tanzania’s economy and demographic data are major attractions for investing in digital services, ensuring profitability.
“The economic growth rate is good, the number of people of working age is appealing, and there is peace. That’s why there has been good growth for companies providing various services here,” Mr Sicilima said.
