Economy

Tanzania sees surge in mobile and internet penetration

Dar es Salaam. Tanzania’s telecommunications sector has registered remarkable growth, bolstered by increased mobile subscriptions and improved network coverage, according to the latest Communication Statistics Report released by the Tanzania Communications Regulatory Authority (TCRA) for the quarter ending December 2024.

The report highlights a 7.7 percent rise in total telecom subscriptions, growing from 80.7 million in September 2024 to 86.8 million by December 2024.

Mobile subscriptions continued to dominate, accounting for 86.7 million, while fixed-line connections stood at just 78,299.

 “Dar es Salaam led the regional distribution with 15.98 million active subscriptions, followed by Mwanza and Arusha at 5.75 million and 5.23 million, respectively,” the report reads in part.

Internet penetration soars

Internet connectivity saw significant strides, with active subscriptions reaching 48 million by the end of December 2024—a 16.1 percent increase from the previous quarter’s 41.4 million.

Mobile wireless services were the preferred access method, constituting 99.6 percent of total subscriptions.

The report further revealed that the adoption of mobile broadband has surged, with 3G and 4G networks covering 91 percent and 88 percent of the population, respectively.

However, 5G adoption remains modest, covering 20 percent of the population.

Smartphone adoption and data usage

The penetration of smartphones grew to 36 percent, up from 33.9 percent in September 2024, while feature phones maintained a dominant presence with an 87.4 percent penetration rate.

Data consumption also spiked, with the average usage per subscriber rising to 4.49 GB in December, compared to 4.27 GB in November.

Mobile money growth

Mobile money services continued to thrive, with active accounts increasing to 63.2 million, up 3.9 percent from 60.8 million in the preceding quarter.

M-Pesa maintained its market leadership, commanding a 38.9 percent share, followed by Airtel Money and Mixx by Yas at 30.7 percent and 19 percent, respectively.

Mobile money transactions reached a staggering 368 million in December alone, highlighting the pivotal role of these services in financial inclusion.

Voice and SMS traffic trends

“Voice traffic volumes reached 42.5 billion minutes, marking a 3.3 percent rise from the previous quarter’s 41.1 billion,” the report says.

Local SMS traffic also saw an 11 percent increase, with 52.9 billion messages sent during the quarter compared to 47.6 billion in the preceding period.

International SMS traffic grew marginally, reflecting steady engagement with East African and global networks.

Advancements in network infrastructure

The country’s telecommunication infrastructure continued to expand, with the number of telecom towers increasing to 8,899 by December 2024.

Dar es Salaam topped the list with 1,214 towers, reinforcing its status as Tanzania’s connectivity hub.

Moreover, the deployment of advanced network technologies, including 5G, rose by 7.9 percent, with 900 5G base stations now operational.

This represents a progressive shift towards high-speed internet solutions, particularly in urban areas.

Quality of service improves

The report underscored improvements in network quality across key metrics.

All mobile operators surpassed the compliance threshold for call success rates and voice quality.

Handover success rates—the ability to transfer calls seamlessly between towers—also met the required standard of 98 percent in all regions.

Notably, Airtel and Yas performed strongly in 4G service coverage, achieving compliance in all 19 measured service areas. Similarly, all operators demonstrated substantial progress in reducing call drop rates and connection failures.

Regional disparities persist

Despite national gains, regional disparities in telecom penetration remain evident. While Dar es Salaam enjoys robust connectivity, regions like Kaskazini Unguja, Kusini Unguja, and Kusini Pemba reported significantly lower subscription figures, underscoring the need for targeted investments in underserved areas.

Industry outlook

With internet and mobile penetration rates reaching 88 percent and 111 percent, respectively, the sector is poised for continued growth.

However, stakeholders emphasise the importance of addressing challenges such as fraudulent activities and the uneven distribution of resources.

The TCRA reiterated its commitment to fostering a competitive and inclusive telecommunication environment.

“Our goal is to ensure that every Tanzanian has access to reliable and affordable communication services,” TRC said in a statement in the report.

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