THE RESPONDENT

Airtel Tanzania leads in connectivity and innovation, in TCRA’s latest performance report

By Alfred Zacharia

Airtel Tanzania continues to demonstrate notable growth and innovation within the telecommunications sector, as reflected in the Tanzania Communications Regulatory Authority’s (TCRA) report released on October 22, 2024. Building on its achievements from March 2024, Airtel holds a solid position in key service areas, including voice, Machine-to-Machine (M2M) communication, and mobile money. However, it faces competition from providers like Vodacom and Tigo, who lead in certain areas. 

Sustaining Leadership in Call Minutes and Connectivity

In TCRA’s report, Airtel maintained the highest share in on-network and off-network call minutes with 38.8% and 30.5%, respectively, marking an increase from March 2024. While this call-minute growth positions Airtel as a leading choice for voice services, Vodacom and Tigo remain close competitors. Vodacom, for instance, has consistently retained a significant market share in voice services and benefits from its extensive coverage and strong brand loyalty.

On-net calls are increasingly popular, with 51.3% of all voice minutes being on-network across providers. Airtel’s competitive intra-network pricing has likely contributed to its popularity for on-net calls, though Halotel’s lower tariffs challenge Airtel’s cost-effectiveness. Both Airtel and its competitors are recognized for enabling affordable communication, with each striving to maximize connectivity in Tanzania’s expanding market.

Advancing in M2M and IoT Solutions

Airtel has shown particular strength in M2M services, holding a 32.7% market share, placing it second after Vodacom, which dominates with 56.2%. Vodacom’s lead in M2M suggests a stronger foothold in the Internet of Things (IoT) sector, particularly in urban and industrial applications. Nevertheless, Airtel’s investments in IoT applications across agriculture, logistics, and manufacturing signal its dedication to meeting the growing demand for data-driven automation and industry-specific solutions.

While Vodacom’s extensive infrastructure gives it an edge in M2M, Airtel’s focus on IoT solutions allows it to capitalize on the growing need for real-time data transfer, helping Tanzanian businesses boost efficiency. This competition highlights both Airtel and Vodacom as key enablers of the digital economy, driving advancements in Tanzania’s tech landscape.

Airtel Money: A Major Player in Digital Financial Inclusion

Airtel Money ranks third in Tanzania’s mobile money market, following M-Pesa (36.9%) and Tigo Pesa. Airtel Money holds 18.8% of the market share, serving millions who rely on mobile financial services for everyday transactions. M-Pesa’s longstanding dominance is due to Vodacom’s wide-reaching network and early entry into the digital financial landscape. Tigo Pesa also remains a strong competitor, appealing to customers with accessible pricing and extensive transaction options.

Despite these competitors, Airtel Money has solidified its place as a transformative financial service, catering to diverse needs, including merchant payments and government transactions. The platform’s continued growth reflects Airtel’s commitment to financial inclusion, as it works to bridge the gap for underbanked communities and expand access to secure financial services. This competition among providers underscores Tanzania’s dynamic mobile money market, with each company enhancing financial accessibility and inclusion.

Quality of Service: Standing Out in Consistency and Reliability

Airtel’s 97% rating in both voice and internet quality is a testament to its commitment to reliable service, ensuring consistent connectivity and data speed. However, TCRA’s March report indicated that Airtel’s competitors, Halotel and Tigo, have also achieved high QoS scores at 94.9% and 94.8%, respectively, highlighting a close race in service quality. Airtel’s performance here demonstrates a slight advantage, particularly in urban and suburban regions where demand for high-quality service is highest.

While Vodacom remains a strong competitor in service reliability, Airtel’s high QoS scores reinforce its dedication to providing dependable connectivity across Tanzania’s diverse regions. Both urban and rural customers benefit from this quality, though continued infrastructure investment will be key to Airtel’s sustained edge in QoS.

Driving Tanzania’s Connectivity and Digital Future

TCRA’s report underscores Airtel’s strategic approach to enhancing connectivity, promoting digital financial services, and supporting IoT innovation. Airtel’s ongoing investments in network expansion and its success in core services position it as a key player in Tanzania’s digital evolution. However, the competitive landscape remains dynamic, with Vodacom leading in M2M and internet services, while Tigo and M-Pesa dominate in mobile money.

Airtel’s performance in voice services, M2M communication, and mobile money highlights its role in Tanzania’s digital transformation. By continuously upgrading its infrastructure and focusing on quality, Airtel is well-positioned to be a reliable digital partner for individuals and businesses. It plays a crucial part in connecting a more inclusive and tech-enabled Tanzania.

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