Tanzania’s internet landscape has experienced tremendous growth, with subscriptions surging from 23.1 million in 2019 to 86.8 million in 2024, reflecting a remarkable expansion of over 275% in five years. Mobile internet dominates the sector, accounting for 47.9 million subscriptions, supported by the rollout of 4G (88% coverage) and emerging 5G (20% coverage) technologies. Affordable data pricing, averaging Tsh 9.35 per MB, has fueled adoption, while urban centers like Dar es Salaam lead in connectivity. However, with 22.3 million users still relying on 2G, challenges persist in extending advanced internet access to rural areas, creating significant opportunities for infrastructure development and digital inclusion.

Internet Services in Tanzania

1. Internet Usage Trends (2019-2024)

• Growth in Internet Subscriptions:
  • 2019: 23.1 million subscriptions
  • 2020: 32.3 million (+39.8%)
  • 2021: 40.9 million (+26.6%)
  • 2022: 52.8 million (+29.1%)
  • 2023: 61.8 million (+17.1%)
  • 2024: 86.8 million (+16% compared to 2023) **​.
• Mobile internet leads the market with 47.9 million subscriptions as of December 2024, while fixed internet subscriptions are minimal but steadily growing.

2. Internet Subscriptions by Technology (2024)

• Mobile Internet: 25.6 million subscriptions (53% of total users).
• 2G Connections: 22.3 million subscriptions, showing persistence despite newer technologies.
• Fiber Connections:
  • Fiber to the Home (FTTH): 71,661 subscriptions.
  • Fiber to the Office (FTTO): 11,540 subscriptions.
• The growth reflects investments in 4G (88% coverage) and 5G (20% coverage)​.

3. Cost of Internet Services by Provider (December 2024)

The following is a breakdown of data service costs in Tanzanian Shillings (Tsh) for 1 Megabyte (MB) outside bundled packages:

• Airtel: Tsh 9.35/MB
• Halotel: Tsh 9.35/MB
• Vodacom: Tsh 9.35/MB
• TTCL: Tsh 9.35/MB
• Yas: Tsh 9.35/MB

The average cost of data across all service providers is Tsh 9.35 per MB, indicating uniform pricing due to market regulation.

• In bundled packages, data costs drop significantly. For example:
  • Within Bundles: Prices as low as Tsh 2.16 per MB​.

4. Market Share in Internet Services

• Vodacom leads with 34% market share, followed by Airtel (30%) and Halotel (23%).
• Fixed internet services are dominated by smaller providers like TTCL and private operators, but their overall market share remains minimal compared to mobile services​.

Insights and Trends:

• Affordable Internet Growth: The average price for bundled data is significantly cheaper, which has driven the adoption of mobile internet.
• Technology Expansion: Investments in 4G and 5G have enhanced data speeds and accessibility, but 2G remains relevant for rural areas.
• Opportunities: Expanding fiber connections and lowering device costs can further boost digital access.

The analysis of Tanzania's internet services and trends key insights into the state of connectivity and its implications

1. Significant Growth in Internet Access

• Consistent Expansion: Over the last five years, internet subscriptions have grown from 23.1 million in 2019 to 86.8 million in 2024, driven by mobile internet, infrastructure investments, and increased affordability.
• Technology Uptake: Mobile internet dominates, with 53% of users relying on mobile data, reflecting its affordability and accessibility, especially in rural areas.

2. Affordability and Accessibility

• Uniform Pricing: Data costs average Tsh 9.35/MB across providers, with much cheaper rates in bundled packages (as low as Tsh 2.16/MB). This affordability has contributed to the adoption of internet services among diverse demographics.
• Broad Coverage: The rollout of 4G (88% coverage) and growing 5G (20% coverage) reflects a strong push to modernize infrastructure.

3. Urban-Rural Divide

• Persistent 2G Usage: The high number of 2G users (22.3 million) highlights challenges in reaching rural areas with advanced technologies like 4G and 5G.
• Fiber Gaps: Limited fiber connections (FTTH: 71,661 and FTTO: 11,540 subscriptions) suggest that fixed internet infrastructure is still underdeveloped, primarily catering to urban centers and businesses.

4. Competitive Market Dynamics

• Market Concentration: Vodacom (34%), Airtel (30%), and Halotel (23%) dominate the internet market, ensuring competitive pricing and service improvements.
• Innovation Opportunities: The uniform pricing among providers reflects regulatory stability but leaves room for differentiation in services, such as quality, speed, and customer experience.

5. Future Opportunities and Challenges

• Opportunities:
  • Expanding fiber infrastructure and improving rural access to advanced technologies like 4G and 5G.
  • Leveraging affordable bundled data to drive digital services adoption (e.g., e-commerce, mobile banking, and e-learning).
• Challenges:
  • Bridging the rural-urban gap in technology adoption.
  • Ensuring equitable access for underserved regions.

Overall Implications

Tanzania's internet sector reflects a robust trajectory of growth, driven by affordability and mobile technology. However, the urban-rural divide and limited fixed internet penetration remain critical areas to address. The continued investment in infrastructure and innovative service offerings can position Tanzania as a digital leader in the region.