| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 5.09 Billion |
| Market Size (2030) | USD 6.85 Billion |
| CAGR (2025 - 2030) | 6.10 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Tanzania Telecom Market Analysis
The Tanzania Telecom Market size is estimated at USD 5.09 billion in 2025, and is expected to reach USD 6.85 billion by 2030, at a CAGR of 6.1% during the forecast period (2025-2030).
- The rapidly growing adoption of smartphones among the country’s population is propelled by increasing roll-out and enhanced internet accessibility by telecom operators nationwide. For instance, according to the Tanzania Communications Regulatory Authority (TCRA), the percentage of geographical coverage by 3G mobile network signal increased from 62% in June 2023 to 67% in September 2023, whereas 4G increased from 50% to 55% during the same duration. This growth in coverage of 3G and 4G networks in the country is driving telecom market growth.
- The growth of mobile money services like M-Pesa, T-Pesa, Airtel Money, and others drives telecom market growth based on the significant increase in mobile money subscriptions. According to TCRA, the number of mobile money subscriptions increased from 47.3 million in June 2023 to 51.4 million in September 2023, an increase of 8.7%. This growth in mobile money subscriptions indicates that more people are using their mobile phones for financial transactions. This increased activity on mobile phones likely leads to increased demand for mobile data services to facilitate these transactions, thus driving market growth.
- Government initiatives in Tanzania aimed at extending telecommunication services to rural regions are poised to bolster market growth by expanding network coverage, increasing mobile penetration, promoting digital inclusion, and fostering socio-economic development. This creates a larger and more engaged market for telecom operators, leading to increased revenue and potential service innovation.
- For instance, in May 2023, Tanzania signed an agreement for rural telecommunications projects aimed at providing communication services to 8.5 million previously unconnected individuals. The Minister for Information, Communication, and ICT announced that five telecommunications companies are set to build 758 new towers, valued at Sh 265.3 billion, across 713 mainland wards. They will upgrade 304 existing towers that currently offer 2G to 3G and 4G internet services. These projects are a joint effort between the telcos and the government. The government provides grants, covering up to 40% of the funding, while the mobile network operators finance the remaining 60%.
- The initiatives by telecom operators and the Tanzanian government to accelerate digital adoption across the country with enhanced network coverage and communication are projected to propel market growth in the coming years. For instance, in October 2023, Airtel Tanzania and the government signed an agreement to drive digital adoption by installing 758 communication towers across the country. However, the lack of access to reliable mobile network coverage in a considerable part of the country is challenging market growth.
- In collaboration with the government, Tanzania's telecom operators are spearheading initiatives to boost digital adoption. Their focus on expanding network coverage and communication infrastructure is set to catalyze market growth in the coming years. For instance, in October 2023, Airtel Tanzania and the government signed an agreement to drive digital adoption by installing 758 communication towers nationwide. However, the lack of access to reliable mobile network coverage in a considerable part of the country is challenging market growth.
- The COVID-19 pandemic led to a surge in demand for remote and virtual communication, resulting in increased demand for voice calls and data services, providing revenue generation opportunities for telecom vendors. It has highlighted the importance of digital access in the country, encouraging initiatives to expand network coverage to rural areas, potentially leading to long-term growth for the market.
Tanzania Telecom Market Trends
Growing Mobile Penetration
- Mobile phone penetration is rapidly increasing in Tanzania, with a significant portion of the population in the country coming online for the first time, leading to a large potential subscriber base for telecom operators. For instance, according to GSMA, Tanzania registered approximately 67.72 million mobile connections (excluding IoT) as of 2024, which is an increase from 50.8 million compared to the previous year. Mobile connections corresponded to over 86% of the country's population.
- Among all the major active mobile communications providers in Tanzania, there was an overall surge in the number of mobile voice telecom subscriptions during the first quarter of 2022 and the second quarter of 2023. Vodacom held its dominance, boasting 19.1 million subscriptions and capturing a substantial market share by June 2023. The nation's collective mobile cellular subscriptions surpassed 64 million by the same period, according to TCRA.
- The rising demand for mobile money in Tanzania prompts individuals to acquire new mobile phones or upgrade to smartphones equipped with mobile money transaction capabilities. Consequently, this surge in demand is leading to a considerable rise in mobile network connections. As a result, mobile money services are not just enhancing the functionality of mobile phones in Tanzania but also fueling a broader adoption of smartphones, thereby expanding the user base for mobile money services.
- Telecom companies are actively driving smartphone adoption, bolstering market growth. In a recent move, Vodacom Tanzania partnered with CRDB Bank in March 2024 to enhance smartphone accessibility for the Tanzania population. Through this initiative, customers may now avail themselves of loans that are repayable daily, weekly, or monthly over 12 months. These transactions are facilitated through M-Pesa, Vodacom's mobile money platform.
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Data and Messaging Services Segment is Expected to Drive Market Growth
- Tanzania's digital landscape is rapidly evolving, evident in the surging connectivity to communication and internet services. This is accelerating consumers' need for data and messaging services to access services and the internet through smartphones. This shift is reshaping Tanzania's social, cultural, and economic landscapes, bolstering access to essential services, and increasing productivity and efficiency across industries.
- Internet subscriptions are continuously growing in Tanzania through cable modem, DSL, fiber-to-the-home/business, other fixed (wired), satellite, terrestrial fixed wireless, handset-based, computer-based (USB/dongles), and mobile wireless. The mobile internet subscriptions in the last three months, regardless of data speeds through GPRS, 3G, 4G, and 5G, have shown notable growth in the country. The mobile internet subscriptions grew by 1.3% in the quarter ending September 2023 compared to June 2023. This growth in accessing mobile internet is driving the growth of mobile data services.
- Cheaper mobile data packs make mobile data more accessible to a broader population in the country, leading to a surge in data consumption. This translates to higher revenue for telecom operators from data services, which generate more revenue than voice call services. For instance, according to Cable.co.uk, 1GB of mobile internet in Tanzania costed an average of USD 0.84 in 2023. Out of 56 plans measured in the country, the lowest price observed was USD 0.81 per 1GB for a 30-day plan.
- The trend of international and local SMS is growing due to factors such as the unavailability of reliable internet access in rural areas, the use of basic feature phones without internet access, and others. For instance, according to TCRA, the trend of local SMS over the past five years registered an average increase of 5% and 22% for on-net and off-net SMS, respectively.
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Tanzania Telecom Industry Overview
The Tanzanian telecom market is concentrated, with a few large players catering to the country's telecom needs. The key players operating in the market studied include Vodacom Tanzania PLC, Airtel Tanzania Limited, and Tigo Tanzania. These companies are witnessing strategic initiatives such as collaboration, partnership, and mergers and acquisitions.
- April 2024: Vodacom Tanzania PLC (VTPLC), a key telecom provider in Tanzania, strengthened its position in the telecom industry by acquiring Smile Communication Tanzania Limited on April 3, 2024, for TZS 68.8 billion (USD 27.4 million). Vodacom emphasized that the acquisition would enhance the customer experience by expanding mobile coverage and capacity. The agreement granted Vodacom access to Smile's valuable spectrum holdings, including the 800 MHz band and mid-band frequencies.
- September 2023: Vodacom Tanzania, in partnership with Airtel Tanzania and Honora Tanzania (Tigo Tanzania PLC), jointly announced an investment of TZS 32.5 billion to bolster and expand its telecommunications infrastructure. This strategic initiative underscores its shared commitment to enhancing connectivity and fostering economic growth in Tanzania.
Tanzania Telecom Market Leaders
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Vodacom Tanzania PLC
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Airtel Tanzania Limited
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Tigo Tanzania
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Halotel
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Tanzania Telecommunications Corporation (TTCL)
- *Disclaimer: Major Players sorted in no particular order
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Tanzania Telecom Market News
- October 2023: The Tanzanian Government and Airtel Tanzania signed an agreement to install 758 communication towers nationwide. The project aims to boost accessibility and efficiency in communication services, targeting a minimum of 85% internet penetration by 2025.
- September 2023: AXIAN Telecom, bolstering its endeavors in Tanzania and Madagascar, secured a USD 158.3 million loan from JPMorgan Chase Bank NA. The loan is divided into two key segments, with a core objective of enabling AXIAN Telecom to clear its existing capital expenditures and providing the necessary financial impetus for the ongoing network modernization initiatives in Tanzania and Madagascar.
Tanzania Telecom Industry Segmentation
Telecom is the long-range transmission of information by electromagnetic means. The Tanzanian telecom market includes in-depth trend analysis based on connectivity like fixed networks, mobile networks, and telecom towers. The Tanzanian telecom market is segmented by services (voice services (wired and wireless), data and messaging services, and OTT and pay TV services).
The report offers the market size in value terms in USD for all the abovementioned segments.
| By Service | Voice Services | Wired |
| Wireless | ||
| Data and Messaging Services (Coverage to include Internet and Handset Data Packages, and Package Discounts) | ||
| OTT and PayTV Services |
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Tanzania Telecom Market Research FAQs
How big is the Tanzania Telecom Market?
The Tanzania Telecom Market size is expected to reach USD 5.09 billion in 2025 and grow at a CAGR of 6.10% to reach USD 6.85 billion by 2030.
What is the current Tanzania Telecom Market size?
In 2025, the Tanzania Telecom Market size is expected to reach USD 5.09 billion.
Who are the key players in Tanzania Telecom Market?
Vodacom Tanzania PLC, Airtel Tanzania Limited, Tigo Tanzania, Halotel and Tanzania Telecommunications Corporation (TTCL) are the major companies operating in the Tanzania Telecom Market.
What years does this Tanzania Telecom Market cover, and what was the market size in 2024?
In 2024, the Tanzania Telecom Market size was estimated at USD 4.78 billion. The report covers the Tanzania Telecom Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Tanzania Telecom Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Tanzania Telecom Industry Report
Statistics for the 2025 Tanzania Telecom market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Tanzania Telecom analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
