Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

Tanzania’s internet landscape is rapidly expanding, with a heavy reliance on mobile networks for access in '24
October 21, 2024  
Tanzania's internet landscape is rapidly expanding, primarily driven by mobile networks. The total number of internet subscriptions rose by 5%, from 39.3 million in June 2024 to 41.4 million by September 2024. Mobile internet remains dominant, with 22.9 million high-speed mobile lines (3G, 4G, 5G), while 18.3 million still use 2G services. Vodacom leads the […]

Tanzania's internet landscape is rapidly expanding, primarily driven by mobile networks. The total number of internet subscriptions rose by 5%, from 39.3 million in June 2024 to 41.4 million by September 2024. Mobile internet remains dominant, with 22.9 million high-speed mobile lines (3G, 4G, 5G), while 18.3 million still use 2G services. Vodacom leads the market with a 32.5% share, followed by Airtel (27.9%) and Tigo (25.1%). Though fixed internet services, particularly fiber-optic connections, are slowly growing, mobile remains the primary access mode. This rapid connectivity growth supports Tanzania's digital transformation.

1. Number of Internet Lines:

  • The total number of internet subscriptions increased from 39.3 million in June 2024 to 41.4 million in September 2024, a growth of 5% in just three months.
  • The increase highlights the growing demand for internet services across Tanzania, driven by the need for digital communication, entertainment, education, and online business.

2. Breakdown of Internet Subscriptions by Technology:

The internet subscriptions are categorized based on the technology used to access the service. Here is the breakdown for September 2024:

  • Mobile Wireless Internet (2G, 3G, 4G, 5G):
    • This is the most common form of internet access in Tanzania. It accounts for the majority of internet lines, with 22.9 million lines subscribed to high-speed mobile internet (e.g., 3G, 4G, 5G), an increase from 22.1 million in June 2024.
    • 2G services still serve 18.3 million subscribers, highlighting that a significant portion of the population uses basic mobile internet services like GPRS and EDGE.
  • Fixed Wireless Internet:
    • This category includes services like WiMAX and is used less frequently. The number of subscriptions here is relatively low, with 59,743 fixed wireless lines in September 2024, a slight increase from 52,893 in June 2024.
  • Fixed Wired Internet:
    • Fiber to the Home (FTTH): 10,449 lines in September 2024, up from 9,028 in June 2024.
    • Fiber to the Office (FTTO): 59,743 lines in September 2024, up from 52,893 in June 2024.
    • Other Fixed Wired Internet: 59,605 lines in September 2024, up from 49,905 in June 2024​.

This shows that while mobile internet dominates, there is gradual growth in wired internet services, especially for homes and offices.

3. Internet Market Share by Providers:

The mobile internet market is dominated by a few key providers:

  • Vodacom holds the largest share with 32.5% of the market.
  • Airtel follows with 27.9%.
  • Tigo controls 25.1%.
  • Halotel has 10.8%.
  • TTCL holds the smallest share at 3.7%​.

This data indicates that most Tanzanians access the internet through mobile networks, with Vodacom, Airtel, and Tigo being the primary providers.

4. Historical Growth in Internet Subscriptions:

  • Over the past few years, there has been a significant increase in internet subscriptions, reflecting the growing importance of internet access in everyday life and business.
  • The number of internet subscriptions increased from 22 million in 2019 to 41.4 million by September 2024. This shows that internet penetration has nearly doubled in the past five years, driven by mobile internet expansion and the rollout of higher-speed technologies like 4G and 5G​.

5. Average Monthly Data Usage:

  • The report also highlights that the average monthly data usage per internet user is growing, indicating that Tanzanians are increasingly consuming more digital content.
  • This rise can be attributed to the increased use of smartphones, the availability of affordable data packages, and growing digital literacy.

6. International Internet Capacity:

  • The international internet capacity available for Tanzania continues to grow, supporting faster internet speeds and larger amounts of data transmission.
  • The report notes an increase in international bandwidth capacity, which allows for improved internet services nationwide, especially in urban centers where demand is highest​.

Summary:

  1. Strong Growth: The number of internet subscriptions grew by 5% in just three months, reaching 41.4 million by September 2024. Mobile internet dominates this growth, particularly through 3G and 4G technologies.
  2. Mobile Internet Leads: Mobile internet is the most popular means of access, with 22.9 million high-speed mobile lines. However, a significant portion of users still relies on 2G services (18.3 million), showing that not all regions are fully transitioned to faster networks.
  3. Market Dominance by Vodacom, Airtel, and Tigo: The internet market is dominated by Vodacom, Airtel, and Tigo, which together hold over 85% of the mobile internet market.
  4. Fixed Wired Internet Slowly Expanding: Although mobile internet dominates, there is slow but steady growth in fiber-optic connections for homes and offices, indicating gradual improvement in infrastructure for fixed wired internet services.
  5. Rising Data Consumption: The rise in internet subscriptions and increased data usage reflects the growing digital transformation of Tanzania, where more people are accessing the internet for communication, entertainment, business, and education.

Internet services with insights into the country's digital landscape and internet usage trends

Tanzania’s internet landscape is rapidly expanding, with a heavy reliance on mobile networks for access. This growth tells us that the country is becoming more digitally connected, which is essential for economic development, social inclusion, and modernization. The ongoing rollout of faster mobile technologies (4G, 5G) and the gradual expansion of fixed internet services suggest that Tanzania is on a path towards better digital infrastructure, though there are still gaps in rural and underserved areas.

Overall, the numbers reflect a positive digital trend, with increasing connectivity enabling more Tanzanians to participate in the global digital economy.

1. Rapid Internet Expansion:

  • The increase in internet subscriptions from 39.3 million to 41.4 million in just three months (a 5% growth) indicates that internet access is becoming increasingly widespread. This points to a growing demand for connectivity, driven by factors such as the need for online communication, education, entertainment, and business.

2. Dominance of Mobile Internet:

  • The overwhelming majority of internet users access the internet via mobile wireless technologies (2G, 3G, 4G, 5G), with 22.9 million users on high-speed mobile networks (up from 22.1 million). 2G services are still in use by 18.3 million subscribers, showing that many regions rely on slower, basic mobile internet. This suggests that while faster networks are growing, there is still a significant reliance on older, slower technologies in rural areas.

3. Mobile Operators as Key Providers:

  • The mobile internet market is dominated by Vodacom (32.5% market share), Airtel (27.9%), and Tigo (25.1%). This strong presence indicates that these companies are the primary drivers of internet access across Tanzania, especially in areas where fixed internet infrastructure is limited. The data tells us that mobile internet is more accessible and convenient for most people compared to fixed connections.

4. Slow Growth in Fixed Internet Services:

  • Despite mobile internet’s dominance, there is gradual growth in fixed wired internet services, especially fiber-to-the-home (FTTH) and fiber-to-the-office (FTTO), which saw an increase in subscriptions. This growth is particularly important for businesses and urban users who require faster, more reliable internet. However, the numbers remain relatively small, indicating that infrastructure for fixed internet is still in the early stages of development.

5. Increased Data Usage:

  • The growth in internet subscriptions and the rise in average monthly data usage suggest that Tanzanians are consuming more online content than ever before. This points to increasing digital engagement through activities such as streaming, online learning, and e-commerce.

6. Improved International Internet Capacity:

  • The report mentions an increase in international bandwidth capacity, which enhances the country’s ability to support higher data speeds and volumes. This improvement is crucial for handling the growing number of users and their increasing data demands, especially in urban centers.

7. Digital Transformation and Economic Impact:

  • The rapid growth in internet usage indicates that Tanzania is undergoing a digital transformation, with internet services becoming integral to the economy. This growth supports sectors such as e-commerce, digital banking, online education, and telehealth. It also facilitates communication and access to information, both crucial for development.

Source: Takwimu za Mawasiliano Robo ya mwaka inayoishia Septemba 2024

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