The total number of telecom subscriptions (including both SIM cards and fixed lines for both Person-to-Person (P2P) and Machine-to-Machine (M2M) communication) reached 76.6 million by the end of June 2024. This represents a 4.3% increase from the previous quarter, which ended in March 2024 with 73.4 million subscriptions.

P2P Communication

Telecom subscriptions for P2P communication per operator showed an average monthly increase of 2% from April to June 2024. The breakdown of P2P subscriptions by operator is as follows:

• Airtel: Increased from 19,189,159 in April to 19,507,893 in June.
• Halotel: Increased from 9,116,374 in April to 9,821,837 in June.
• Tigo: Increased from 20,345,932 in April to 21,517,857 in June.
• TTCL: Increased from 1,637,782 in April to 1,651,331 in June.
• Vodacom: Increased from 22,326,386 in April to 23,089,088 in June.

Overall, P2P subscriptions increased from 72.6 million in March 2024 to 75.6 million in June 2024, marking a 4.3% rise​.

M2M Communication

The number of SIM cards subscribed for M2M communication per operator for the quarter ending June 2024 is detailed below:

• Airtel: Increased from 323,273 in April to 329,292 in June.
• Halotel: Increased from 54,920 in April to 57,340 in June.
• Tigo: Decreased slightly from 24,859 in April to 24,755 in June.
• TTCL: Decreased slightly from 6,542 in April to 6,512 in June.
• Vodacom: Increased from 533,906 in April to 551,541 in June.

Total M2M subscriptions rose from 943,500 in March 2024 to 969,440 in June 2024, indicating a 4.3% growth​​.

Market Share

• P2P Market: No single operator has a market share greater than 35%, indicating healthy competition. Market shares are as follows: Vodacom (30.5%), Airtel (28.5%), Tigo (25.8%), Halotel (13.0%), and TTCL (2.2%)​(Communication Statistic…)​.
• M2M Market: Vodacom dominates with 56.9% of subscriptions, followed by Airtel (34.0%), Halotel (5.9%), Tigo (2.6%), and TTCL (0.7%)​.

Trends Over Five Years

The telecom subscription trends for P2P communication over the past five years have shown a significant increase, with total subscriptions growing from 47.8 million in 2019 to 70.3 million in 2023. The penetration rate has increased from 78% in 2019 to 111% in 2023​​.

These statistics reflect a growing and competitive telecom market in Tanzania, with substantial increases in both P2P and M2M subscriptions across various operators.

Tanzania's Digital Economy

The telecom subscription statistics reflect a positive trajectory for Tanzania's digital economy, marked by significant growth, high penetration rates, and competitive dynamics. These trends suggest a strong foundation for expanding digital services, fostering economic opportunities, and enhancing overall connectivity, which are critical for a thriving digital economy.

Growth and Penetration

• Increasing Subscriptions: The rise in telecom subscriptions from 73.4 million in March 2024 to 76.6 million in June 2024 shows a robust growth trajectory. This 4.3% quarterly increase indicates a rapidly expanding user base, crucial for digital economic activities.
• High Penetration Rate: With a penetration rate surpassing 111% in 2023, the majority of Tanzanians have access to mobile connectivity. This widespread access is foundational for digital services, e-commerce, mobile banking, and online education.

Market Competitiveness

• Healthy Competition: No single operator dominates the P2P market, with the largest share held by Vodacom at 30.5%. This competitive environment can drive innovation, better services, and lower prices, benefiting consumers and fostering digital inclusivity.
• Dominance in M2M: Vodacom’s 56.9% share in M2M subscriptions points to its leading role in supporting IoT (Internet of Things) applications, which are crucial for sectors like agriculture, healthcare, and logistics in the digital economy.

Technological Adoption

• P2P and M2M Growth: The significant increase in both P2P (people-to-people) and M2M (machine-to-machine) communication subscriptions highlights the adoption of digital technologies across various sectors. The rise in M2M subscriptions, in particular, underscores the growing reliance on connected devices and smart solutions.

Economic Opportunities

• Digital Services Expansion: The growing number of telecom subscriptions provides a larger customer base for digital services such as mobile payments (M-Pesa, Tigo Pesa), online shopping platforms, and digital content services. This expansion drives economic activities and opens new business opportunities.
• Rural Connectivity: The increase in subscriptions across operators suggests efforts to enhance rural connectivity, which is crucial for inclusive economic growth. Improved rural connectivity can enhance agricultural productivity, access to markets, and delivery of government services.

Trends and Future Prospects

• Five-Year Growth Trends: The growth from 47.8 million subscriptions in 2019 to 70.3 million in 2023 indicates a rapidly maturing digital economy. This trend suggests continued investments in digital infrastructure and services.
• Policy Implications: The data supports the need for policies that encourage competition, investment in infrastructure, and digital literacy programs to sustain growth and ensure broad-based participation in the digital economy.