The Tanzania Communications Commission has awarded Vodacom Tanzania a licence to operate a GSM cellular network in the country, following the commission`s decision in July to award a GSM licence.
About $90 million will be invested in the new network during the first year of operations and 200 direct jobs are expected to be created within five years.
Tanzanian shareholders own 49% of the new cellular network, while South African company Vodacom Group has a controlling interest of 51% and the chairman`s position.
Vodacom MD Andrew Mthembu will serve as acting chairman of Vodacom Tanzania.
Vodacom Tanzania expects to have covered the following areas in time for the Tanzanian general election in October 2000: Dar es Salaam, Morogoro, Dodoma, Tanga, Arusha, Moshi, Mwanza, Zanzibar, the international airports in Dar es Salaam, Kilimanjaro and Mwanza, and the tourist areas of the Serengeti.
"Vodacom`s network in SA was also launched to coincide with a general election and there will be other similarities between the roll-out of the Vodacom Tanzania network in Tanzania and Vodacom`s South African roll-out," says Mthembu.
Mthembu says this is because the success story of GSM in SA ensured that the South African GSM model is set to become a blueprint for the roll-out of GSM cellular networks across Africa.
"Vodacom Tanzania`s licence conditions are also similar to those of Vodacom in SA. For example, Vodacom Tanzania has agreed to roll out subsidised community phoneshops in Tanzania`s poorest areas, as Vodacom has done in SA`s underserviced areas.
Vodacom believes it makes sense for telecommunications in Africa to be provided by means of the latest GSM cellular technology, instead of through decades-old copper wire fixed-line technology. When the cost and time taken to lay cables in Africa`s underserviced areas is taken into account, cellular makes more sense.
Radio is expensive in terms of the initial set-up costs, though the roll-out can take place far quicker. Vodacom Tanzania`s network infrastructure will be supplied by Siemens and Motorola.
Vodacom Tanzania expects to attract about 100 000 customers by the end of the second year of operations.
Mthembu adds that Vodacom is looking at all opportunities in Africa which make economic sense.
"A small number of Vodacom employees will be dispatched to facilitate skills transfer, after which the majority of them will return to SA, leaving the day to day running of the network in the hands of Tanzanians. This will be a significant boost to the Tanzanian economy," says Mthembu.
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Vodacom
Vodacom commenced commercial operations in 1994 and is currently valued at between R40 billion and R60 billion. Vodacom remains the leading GSM cellular network operator in South Africa and has a market share of 60%. The company delivers a service to some 2,6 million South Africans that is an integral part of their daily lives.
Vodacom`s R9bn network currently handles 30% of the country`s entire traffic volumes and 10% of the African continent`s. The network consists of some 4 000 base stations, covers 13 000 km of national roads, about 80% of the country`s population and 52% of the total land surface.