Tanzania Telecommunications Company Ltd (TTCL) was formed out of the former Tanzania Posts and Telecommunications Corporation in 1994.  It is wholly owned by the Government of Tanzania, and is governed by statute – the Tanzania Telecommunications Act of 1993.  It is the owner and operator of the public switched telephone network in mainland Tanzania and on Zanzibar.  As at February 1999 it had an exchange capacity of 192,365 lines and 126,515 connected direct exchange lines (DELs).  It has a workforce of under 4,000.  In 1998 its revenues were approximately US$ 112 million, its earnings before interest, tax and depreciation were approximately US$ 32 million, and following a major capital restructuring it has a ‘clean’ balance sheet.

The Telecommunications Sector:

The National Telecommunications Policy of October 1997 sets out the Government’s vision, objectives and target for the telecommunications sector in Tanzania.  The Government’s vision for this sector is for the accelerated development of an efficient telecommunication s network that can provide a national info-communication infrastructure and access to present day telecommunication technologies by all sectors of the economy and all segments of the population, including universal access.

The policy objective is to ensure that telecommunication services are provided in a liberalized and competitive manner.  Specific objectives are:

·        To ensure provision of adequate, sustainable and efficient telecommunication service in all sectors of the economy;

·        To put in place a reliable telecommunications infrastructure and ensure service inter-connectivity nationally and internationally.

The overall target for the sector is to achieve a telephone density of 6 telephones per 100  population by 2020. Teledensity in 1997 was estimated as 0.32 telephones per 100 inhabitants.

The sector is regulated by an independent regulator, the Tanzania Communications Commission (TCC).  The main operator is TTCL which operates fixed line basic telephony services enjoying a monopoly on mainland Tanzania, and a duopoly on Zanzibar.  ZANTEL has the second fixed line voice licence for Zanzibar.

The cellular/mobile telecommunications segment of the market is fully competitive.  There are three cellular operators, Mobitel, which used to have TTCL as one of its shareholders, Tritel, and   Plantel/Vodacom (Tanzania) Ltd.  Zantel has been issued a mobile licence. TTCL received one on privatization and is scheduled to become operational in late 2001.

TCC has issued three data services licences to SITA Group, Wilken Afsat Tanzanian Ltd and Datel Tanzania Ltd.  It has also issued three licences for radio paging services.  The licensees are TTCL, Adesemi (T) Ltd and Call Systems, but only the last one is operational as at May 2001.  There are about twenty or so internet service providers.

Partial Privatisation of TTCL:

The Government has sold 35% of an enlarged share capital of TTCL to a strategic partner/investor.  The strategic partner was identified though a competitive international tender as  the consortium of MSI of the Netherlands and Detecon of Germany.  The sale took the form of purchase of new shares, and the proceeds remained within TTCL.  The strategic partner took over Board and management control on 23 February 2001.  This means that the strategic partner has a veto over major Board decisions, it has the right to appoint the senior management, to set the annual business plan and to control all capital expenditure decisions.

As part of the privatisation process TCC granted five new licences to TTCL for basic public fixed line telecommunications services, mobile telecommunications, radio paging, data services and ISP services.  In return TTCL in the last year disengaged from its joint ventures in Mobitel (cellular) and Datel (data services).   The basic licence gives TTCL an exclusivity period of four years and an obligation to have 800,100 connections by the end of the exclusivity.

Further Privatisation of TTCL:

The Government also intends to sell 29% of the total shares in TTCL in the following manner:

·         14% to international financial institutions;

·        10% to national financial institutions;

·         5% to TTCL employees.

The Government will retain 36% stake until TTCL goes onto the Stock Exchange and an initial public offering (IPO) is carried out.

Sale of Government shares in the former TTCL Joint Ventures:

As part of the privatisation process for TTCL, the TTCL shareholding in its four joint ventures was transferred to the Treasury Registrar.  The Government intends to sell these shareholdings in the following joint ventures: 

1.      ‘Mobitel’ - MIC (Tanzania) Limited, a joint venture with Millicom International Cellular SA whose business is the provision of cellular telephony. 

2.      ‘Datel’ – Datel Tanzania Limited, a joint venture with Nexus International whose business is the provision of data services. 

3.      Teleshop Company Limited, a joint venture with Tansoft Systems Limited whose business is selling telecommunications equipment in retail outlets. 

4.      International House Property Limited, a joint venture with Mitsubishi, Murray and Roberts and other, whose business was the development and ownership of prestigious office facilities for rental.

PSRC is in the process of carrying out preparatory activities for implementing the Government’s strategy for the further privatisation of TTCL and its former joint ventures.  Details of the process for the transactions and the timing will be added to the website in due course.

Go to the top