The East African subsidiary of South African cellular network operator Vodacom has connected 33 000 customers after only three months of commercial operations to become the biggest GSM digital cellular network in Tanzania.
After six years of operations, Tanzania`s three other GSM digital cellular networks have about 20 000 customers between them and the country`s analogue cellular network has an estimated 35 000 customers.
Vodacom said last week that its South African network had passed the four million customer mark and added that its success has been powered by the rapid acceptance of prepaid cellular by the emerging market. "The acceptance of prepaid cellular by Tanzanians has mirrored the trend in South Africa where more than 90% of all new connections to the Vodacom network are prepaid," said James Rege, Managing Director of Vodacom Tanzania Ltd.
Mr Rege added: "Tanzania`s booming economy and a teledensity of just 0.66 lines per hundred people are helping Vodacom Tanzania Ltd to connect 1 000 new customers daily."
"Prospects for the rapid growth of Vodacom Tanzania are probably better than initially forecast in the light of the 5% growth in Tanzania`s GDP during the 1999/2000 financial year and the increase of 1,7% in per capita income," said Mr Rege.
"Tanzania`s low teledensity means that the widest cellular coverage possible remains a priority for Vodacom Tanzania. To illustrate, we had built 40 base station transmitter sites by commercial switch-on in mid-August.
"Three months later, we have expanded that figure to 86 base stations and plan to build another ten base stations by December. This will extend cellular coverage to the towns of Iringa, Singida and Tabora. We also plan to have the island of Pemba covered by the end of this month," said Mr Rege.
Vodacom Tanzania Ltd announced the completion of its state-of-the-art Tanzanian GSM infrastructure during mid-August 2000, having been issued a licence to operate a GSM cellular network by the Tanzania Communications Commission in December 1999.
"Vodacom is looking at all opportunities on the African continent that make economic sense and with just 300 000 fixed and mobile telecommunications users out of a population of 30 million, Tanzania is the potential cellular jewel of Africa," said Andrew Mthembu, Managing Director of Vodacom (Pty) Ltd in South Africa.
Tanzanian shareholders own 49% of the Tanzanian cellular network and include Caspian Construction and Planetel Communications, while Vodacom Group (Pty) Ltd has a controlling interest of 51% and the Chairman`s position.
The other cellular networks in Tanzania are Mobitel (An analogue network with a GSM digital licence), Tritel and Zantel (operating exclusively on the island of Zanzibar). The Tanzanian Telecommunications Company Limited is the fixed-line operator and has been awarded a GSM cellular licence as part of its privatisation deal.
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Global System for Mobile Communications (GSM)
GSM is the world`s leading wireless system and is deployed by more than 400 networks in about 150 countries worldwide. The GSM system has won more than 380 million customers around the world and accounts for more than half of the entire world`s wireless market and almost two thirds of the world`s total digital wireless market.