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The government of Tanzania has signed a crucial deed of settlement agreement with major telecom operators in the country worth TSh 50bn, as payment for the usage of the infrastructure since its construction. The telecom operators are equally committed to investing TSh 32.5bn, in further infrastructure development.
The government of Tanzania has signed a crucial deed of settlement agreement with major telecom operators in the country worth TSh 50bn, as payment for the usage of the infrastructure since its construction. The telecom operators are equally committed to investing TSh 32.5bn, in further infrastructure development. This initiative involved the signing of two key documents; the Deed of Settlement and the Addendum of Memorandum of Agreement between the Government and the Telecom Operators Consortium.
The signing ceremony in Dar es Salaam marked the formalisation of the agreement between the Ministry of Information, Communications, and Information Technology and the Consortium of Telco Operators, which includes Airtel Tanzania, Honora Tanzania (Tigo), and Vodacom Tanzania.
The historic agreement was initiated way back on October 4, 2011, between the government and the Consortium of Telco Operators, aimed to improve telecommunications infrastructure in the country. It focused on the construction of the Optic Fibre Cable Network in underserved areas where the national network did not reach. However, the implementation of the agreement encountered various challenges, leading to further negotiations between the parties involved.
During the signing ceremony, the Consortium agreed to provide USD 20 million over a period of five years, as payment for the usage of the infrastructure since its construction. Additionally, they committed to investing USD13 million in further infrastructure development.
Another significant development during the ceremony was the signing of the Addendum of Memorandum of Agreement, which welcomed Vodacom Tanzania as a member of the Consortium, highlighting the collaboration between the private sector and the government in extending communication services to citizens and fostering economic growth. These positive outcomes of the negotiations will enable the Consortium to hand over approximately 3,000 kilometers of communication infrastructure to the Government. At the same time, the Consortium of Telco Operators will use part of the infrastructure to provide communication services for a specific time and cost to recover the investment they made earlier. In addition, the infrastructure will be connected to the National ICT Broadband Backbone, thus increasing the scope of service provision of the National ICT Broadband Backbone.
Information, Communication, and Information Technology Minister, Nape Nnauye underscored the government’s commitment to enhancing the ICT sector’s reach and quality of services. He cited recent initiatives, such as the construction of 758 new communication towers to expand coverage to over eight million Tanzanians and the reduction of infrastructure installation costs to expedite the delivery of affordable and high-quality communication services. Furthermore, the government has increased the national fibre optic network’s capacity from 200 Gbps to 800 Gbps, with plans to expand it to 2Tbps. The ongoing National Fibre Optic Network construction is expected to reach 99 out of 139 districts by March next year, with the goal of nationwide coverage by the end of 2024.
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The minister emphasised that the government’s objective is to ensure that 85 per cent of Tanzanians have access to high-speed internet by 2025. The minister reiterated the government’s commitment to creating a conducive environment for all service providers to contribute to the realisation of the digital Tanzania vision. The signing ceremony was hailed as a momentous achievement, reflecting the dedication and professionalism of all parties involved, and it marked a significant step toward advancing Telecommunications Infrastructure in Tanzania.
