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The SADC Communications Environment

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The SADC Communications Environment Strengthening of economic and trade related capacities and competences in SADC The SADC Communications Environment An Assessment of Communications Policies, Laws and Regulations in SADC Member States Presented to GIZ – Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH Germany / Botswana October, 2013 Assessment of SADC Communications Policies, Laws & Regulations Your contact person within GFA Consulting Group GmbH is Christopher Smith Strengthening of economic and trade related capacities and competences in SADC The SADC Communications Environment: An Assessment of Communications Policies, Laws and Regulations in SADC Member States Short‐ term Report Prepared by: Charley Lewis & Luci Abrahams, LINK Centre, University of the Witwatersrand, Johannesburg http://link.wits.ac.za Address GFA Consulting Group GmbH Eulenkrugstraße 82 22359 Hamburg Germany Phone +49 (40) 6 03 06 – 352 FaxPrepared by:+49 LINK (40) Centre, 6 03University 06 – of119 the Witwatersrand 2 E‐mail christopher.smith@gfa‐group.de Assessment of SADC Communications Policies, Laws & Regulations 4.13 TANZANIA 4.13.1 TELECOMMUNICATIONS SERVICES Services Framework: The 2003 TCRA Act assigns the regulator authority over licensing (subject to consultation with the Minister in respect of licences of over five years in duration), but does not specify any classification1236. In 2005 the Regulator promulgated a converged licensing framework, with the following licence categories : Network Facilities (which “authorizes ownership and control of electronic communication infrastructure”), Network Services (which “gives authorization to operate electronic communication networks in order to deliver services”), Application Services (which “authorizes reselling or procurement of services from Network Service operators… [where] the licensee does not own network infrastructure nor operate network [sic]”), and Content Services (which “authorizes the provision of content”)1237. The latter category is not applicable to telecommunications. Spectrum licensing is one of 7 licence categories falling outside the converged licensing framework and dealt with separately. The regulator has issued 21 Network Facilities Licences, 17 Network Services Licences and 84 Applications Services Licences. Fixed and mobile telephony operators hold licences under the first two categories (although a number hold all three), with Internet Service Providers largely holding Applications Services licences only1238. The licensing regime in Tanzania is thus fully converged (or horizontal or unified or multi‐service), distinguishing only between infrastructure, services and content. As such, it goes well beyond the vertical framework as set out in W/120. 1236 Tanzania (2003) Tanzania Communications Regulatory Authority Act, 2003’, Act No 12 of 2003, United Republic of Tanzania, Dodoma, available online at http://www.tcra.go.tz/policy/Tanzania%20Communications%20Regulatory%20Act-2003.pdf, Section 6 (1) (b) (i). 1237 TCRA (2005) ‘Guidelines and Procedures for Licensing Electronic and Postal Communications in Tanzania’, Tanzania Communications Regulatory Authority, Dar es Salaam, available online at http://www.tcra.go.tz/licensing/pdf_documents/ANNEX%2013%20- %20LICENSING%20GUIDELINES.pdf. 1238 TCRA (2012) ‘Licensing Information’, Tanzania Communications Regulatory Authority, Dar es Salaam, available online at http://www.tcra.go.tz/licensing/CLFlicensed_operators.php. Prepared by: LINK Centre, University of the Witwatersrand 307 Assessment of SADC Communications Policies, Laws & Regulations FOCUS AREA 1: MARKET STRUCTURE Market Structure: BuddeComm lists Tanzania’s telephony market as comprising two fixed‐line operators, the mainland–based Tanzania Telecommunications Company (TTCL) and Zanzibar Telecom Ltd (ZanTel). Further they suggest there are “eight operational mobile networks, with four additional players licensed under [the] new converged regulatory regime”, with the four major players being Vodacom, AirTel, Tigo and ZanTel. Internet Service Provider (ISP) licensees include Benson Informatics Limited (BOL), SasaTel (Dovetel), Africa Online, Raha.com, Tele2, Alink, SatCom Networks, SimbaNet, Afsat and Cats‐Net1239. The regulator issues comparative quarterly statistics for the telecomms market. Tanzania: Fixed & Mobile Subscribers 2012 (June1240) Subscribers Market Share Vodacom (mobile) 12 317 029 44,0% AirTel (mobile) 7 504 511 26,8% Tigo (mobile) 5 613 330 20,0% Zanzibar Telecom Ltd (ZanTel) (fixed & mobile) 2 356 8,4% 4571241 Tanzania Telecommunications Company (TTCL) 227 4241242 0,8% (fixed & mobile) SasaTel (mobile) 4810 0,0% Benson (mobile) 1 050 0,0% Total 28 024 611 1239 BuddeComm (2012) ‘Tanzania - Telecoms, Mobile, Broadband and Forecasts: Executive summary’, BuddeComm, Bucketty NSW, available online at http://www.budde.com.au/Research/Tanzania-Telecoms-Mobile-Broadband-and-Forecasts.html. The full report is available on a for sale basis. 1240 TCRA (2012) ‘Quarterly Telecom Statistics: Quarter 4 (June 2012) Report’, Tanzania Communications Regulatory Authority, Dar es Salaam, available online at http://www.tcra.go.tz/publications/telecomStatsJune12.pdf, p2. 1241 99,6% of ZanTel’s subscribers are mobile subscribers. 1242 70% of TTCL’s subscribers are fixed line customers. Prepared by: LINK Centre, University of the Witwatersrand 308 Assessment of SADC Communications Policies, Laws & Regulations According to the ITU, the market in Tanzania as at 2011 was broken down as follows: 161 100 fixed‐line subscribers1243; 25 666 500 mobile subscribers1244. This translates to a per capita market penetration rates in the telecommunications sector for Tanzania as at 2011 of 0,3% for fixed‐line, 55,5% for mobile and 11,0% for the Internet (from 0,4%, 46,8% and 12,0% respectively in 20101245. There is no market share breakdown for Internet services. The shareholding of Vodacom is broken down as follows: 65% ‐ Vodacom (South Africa / United Kingdom)1246; 35% ‐ Mirambo Ltd (Tanzania)1247. The shareholding of AirTel is broken down as follows1248: 60% ‐ Bharti Airtel (India); 40% ‐ Government of Tanzania. Tigo is 100% owned by Millicom International Cellular of Luxembourg1249. The shareholding of Zanzibar Telecom Ltd (ZanTel) is broken down as follows1250: 1243 ITU (nd) ‘Fixed-telephone subscriptions’, International Telecommunication Union, Geneva, available online at http://www.itu.int/ITU- D/icteye/Reporting/ShowReportFrame.aspx?ReportName=/WTI/ MainTelephoneLinesPublic&ReportFormat=HTML4.0&RP_intYear=2011&RP_intLanguageID= 1&RP_bitLiveData=False. 1244 ITU (nd) ‘Mobile-cellular telephone subscriptions’, International Telecommunication Union, Geneva, available online at http://www.itu.int/ITU- D/icteye/Reporting/ShowReportFrame.aspx?ReportName=/WTI/CellularSubscribersPublic&Repo rtFormat=HTML4.0&RP_intYear=2011&RP_intLanguageID=1&RP_bitLiveData=False. 1245 ITU (2012) ‘Measuring the Information Society 2012’, International Telecommunication Union, Geneva, available online at http://www.itu.int/ITU- D/ict/publications/idi/material/2012/MIS2012_without_Annex_4.pdf. 1246 Vodacom (2012) ‘Vodacom Integrated report For the year ended 31 March 2012’, Vodacom, Johannesburg, August 2011, available online at http://www.vodacom.com/pdf/annual_reports/ar_2012.pdf, p22. Vodacom, in turn, is 65% owned by Vodafone Plc of the United Kingdom. 1247 Vodacom (nd) ‘Vodacom Tanzania’, Vodacom Tanzania, Dar es Salaam, available online at http://www.vodacom.co.tz/about-us/who-we-are. 1248 TeleGeography (2012) ‘Government confirms 40% stake in Airtel Tanzania’, TeleGeography, Washington DC, 17 Apr 2012, available online at http://www.telegeography.com/products/commsupdate/articles/2012/04/17/government-confirms- 40-stake-in-airtel-tanzania/. 1249 Tigo (2010) ‘Tanzania Capital Markets Event, 8th and 9th Sept 2010’, presentation, available online at http://files.shareholder.com/downloads/MICC/0x0x400685/22D470E7-43A4-46F3- 8DC0-AB3DEBB35CB7/tanzania.pdf. 1250 ZanTel (2011) ‘About Zantel’, Zanzibar Telecom Limited, Zanzibar, available online at http://www.zantel.co.tz/about_us.html. Elsewhere on the site on a page with an earlier date Kintbury Investments of the Channel Islands is listed as a shareholder (cf ZanTel (2010) ‘Company Profile’, Zanzibar Telecom Limited, Zanzibar, available online at http://www.zantel.co.tz/company_profile.html). Prepared by: LINK Centre, University of the Witwatersrand 309 Assessment of SADC Communications Policies, Laws & Regulations 65% ‐ Emirates Telecommunications Corporation (ETISALAT) (UAE); 18% ‐ Government of Zanzibar; 17% ‐ Meeco International of Tanzania. Tanzania Telecommunications Company (TTCL) was partially privatised in 2001, but the exact current shareholding is unclear1251. Range of Services: As can be seen from the ownership breakdown above, foreign entities have a controlling interest in each and every provider with substantial market share in the voice telephony market. No information is available in respect of ISPs. Market Share: Voice telephony providers with as foreign controlling interest account for over 99% of the voice telephony market. Stakeholders: There do not appear to be any such stakeholder groups or organisations. FOCUS AREA 2: REGULATORY REGIME & STATE OF PLAY Restrictions on Scope of Licences: As noted above, the licensing regime for Tanzania is fully technology neutral. Restrictions on Market Access: In the absence of either general horizontal GATS commitments, or any in respect of communications services1252, limited information on the legal status of foreign
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