Tanzania’s telecom market will reach $1.3 billion in revenue this year, mostly driven by mobile network expansion in rural areas, a study by Pyramid Research found.
Mobile voice services will continue to be the major revenue contributor, generating $845 million or 67 percent of total service revenue in 2015.
Growth in mobile service revenue will be driven by the expansion of mobile networks into new regions, particularly rural areas, the market researcher said. Increasing price competition has also helped to boost adoption and usage of mobile services, including mobile money services.
Over the next five years, overall service revenue is expected to grow at a CAGR of 4.5 percent to reach $1.6 billion in 2020. Mobile phone use in Tanzania is currently at 75 percent of the population and growing by 20 percent each year.
Following an expansion in undersea cable connectivity and the launch of the National ICT Broadband Backbone, broadband has become more accessible in the country, sparking demand for data services as well as the arrival of a number of new service providers.
The government is planning to publish regulations for national payment system licence and approval as well as electronic money issuance. Both regulations will support the implementation of National Payment system Act and Electronic Transaction Act which were endorsed earlier this year.
Source: Daily News