The total number of internet subscriptions in Tanzania saw a significant increase from March to June 2024. This includes both mobile and fixed internet subscriptions, covering various technologies like 2G, 3G, 4G, 5G, and fiber optics.

Figures 1:

Growth:

• March 2024: 36.8 million subscriptions
• June 2024: 39.3 million subscriptions
• Increase: 7% from March to June 2024

Technology Breakdown (June 2024):

• Mobile Broadband Subscriptions: 39,311,477 (99.6% of total subscriptions)
• 2G Subscriptions: 17,740,031
• FTTH (Fiber to the Home) Subscriptions: 50,398
• FTTO (Fiber to the Office) Subscriptions: 5,732

Trends: The trend in internet subscriptions over the past five years indicates a consistent growth, with an average annual growth rate of 9.8%. Subscriptions rose from 25.8 million in 2019 to 35.9 million in 2023.

Data Usage:

• April 2024: 140,000,149,653 MB (3,755 MB per subscription)
• May 2024: 136,754,260,519 MB (3,575 MB per subscription)
• June 2024: 149,067,375,618 MB (3,792 MB per subscription)

The increasing reliance on mobile broadband as the primary means of internet access, reflecting the broader trend of mobile-first connectivity in Tanzania's digital economy. The steady increase in subscriptions and data usage points to a growing demand for internet services and improved connectivity infrastructure.

The rapid growth in internet subscriptions, primarily driven by mobile broadband, showcases the expanding digital economy in Tanzania. The consistent increase in data usage per subscriber indicates a deepening engagement with digital services, which is critical for the country's economic development and digital transformation initiatives.

Internet Subscription and its Implications for Tanzania's Digital Economy

Growth in Internet Subscriptions

• Significant Increase: From March to June 2024, internet subscriptions increased by 7%, from 36.8 million to 39.3 million. This growth indicates a rapidly expanding user base for internet services.
• Mobile Broadband Dominance: The overwhelming majority of internet subscriptions are mobile broadband (99.6% in June 2024), reflecting a mobile-first approach to internet access in Tanzania.

Technology Breakdown

• 2G Subscriptions: 17.74 million subscriptions in June 2024, indicating a substantial user base still relying on older technology.
• Mobile Broadband Subscriptions: 21.47 million in June 2024, showing a shift towards more advanced and faster mobile internet services.
• FTTH and FTTO: Relatively low numbers (50,398 for FTTH and 5,732 for FTTO in June 2024), indicating that fiber optic connectivity is still in its early stages of adoption.

Data Usage Trends

• Increasing Data Consumption: Data usage per subscription increased from 3,575 MB in May 2024 to 3,792 MB in June 2024. This trend suggests that subscribers are increasingly using the internet for data-intensive activities such as streaming, online education, and e-commerce.

Implications for Tanzania's Digital Economy

The growth in internet subscriptions and data usage is a positive indicator of Tanzania's evolving digital economy. The predominance of mobile broadband underscores a mobile-first approach, driving broad digital inclusion and creating opportunities for digital services and economic growth. However, continued investment in infrastructure and efforts to bridge the digital divide are crucial to sustaining this momentum and ensuring that all Tanzanians can benefit from the digital revolution.

1. Broad Digital Access and Inclusion
   • Widespread Connectivity: The significant increase in internet subscriptions, particularly mobile broadband, highlights the expanding reach of digital connectivity across Tanzania. This broad access is essential for inclusive digital participation, allowing more citizens to benefit from digital services.
2. Mobile-First Economy
   • Predominance of Mobile Broadband: With mobile broadband accounting for nearly all internet subscriptions, Tanzania's digital economy is heavily reliant on mobile connectivity. This trend aligns with global patterns in developing countries, where mobile networks are often the primary means of internet access.
3. Opportunities for Digital Services
   • Growing Market for Digital Products: The rising number of internet users presents a substantial market for digital services, including e-commerce, digital banking, online education, and entertainment. Businesses can leverage this growing user base to expand their digital offerings.
   • E-Government Services: Increased internet penetration provides an opportunity for the government to enhance the delivery of public services through e-government initiatives, improving efficiency and accessibility.
4. Challenges and Areas for Improvement
   • Need for Infrastructure Development: The relatively low adoption of fiber optic internet (FTTH and FTTO) indicates the need for further investment in high-speed broadband infrastructure to support more advanced digital applications and services.
   • Bridging the Digital Divide: While internet subscriptions are growing, efforts must continue to ensure that all regions, especially rural areas, have access to reliable and affordable internet services.
5. Economic Growth and Innovation
   • Digital Transformation: The increasing internet subscriptions and data usage reflect ongoing digital transformation, which can drive economic growth, innovation, and productivity across various sectors, including agriculture, health, education, and commerce.
   • Investment Attraction: The expanding digital economy can attract local and foreign investments in technology and telecommunications sectors, further boosting economic development.