The arrival of new submarine telecommunications cables starting in 2009, paired with government investment in the national telecommunications backbone, has spurred a revolution in Tanzania that has seen the cost of Internet connectivity drop to as low as 15 US cents a day on a prepaid service.
This represents an effective drop of thousands of percent in the cost of Internet bandwidth in the country over the past three to four years.
In an interview, Anna Kahama-Rupia, managing director of SEACOM Tanzania, says her company is the only privately-funded and truly neutral carrier inthe market, is a bandwidth solution enabler with an extensive network of submarine and terrestrial high speed fibre serving the east and west coasts of Africa with onward reach to and from Europe, India and Asia.
She says before 2009, the cost dedicated for fixed-line was US$5,000 to $10,000 which meant that only larger businesses could afford access to broadband connectivity and Internet access for an ordinary citizen was almost unheard of.
On 23 July 2009, the 17,000 km (9,300 miles) subsea fibre optic cable began operations, providing the East African countries of Djibouti, South Africa, Tanzania, Kenya and Mozambique with high speed Internet connections to Europe and Asia. The cable was officially switched on in simultaneous events held across the region, in Mombasa and Dar es Salaam.
“In service since that time, SEACOM has increased the availability of International bandwidth in Africa ten-fold and more in many of Africa’s most underserved nations - providing high quality, cost effective, end-to-end wholesale connectivity,” she says.
Today, she says, many Tanzanians are paying as little as $15 a month to enjoy high-speed mobile access to the Internet from their cell phones, including the cost voice calls something which has had an enormous transformative effect on education, entrepreneurship and social life in the country.
"The change in Tanzania’s telecommunications landscape can be attributed to two major factors: “Firstly, the arrival of new submarine cables in the country, starting with SEACOM in 2009, and the second one is a massive effort led by the government to rollout 10,000km of national backbone crisscrossing Tanzania up to the eight countries on its borders,’’ Kahama-Rupia says.
She says that before the arrival of SEACOM there was just 300 Mbps of international bandwidth coming into Tanzania for the country’s 50 million people. Today, there is around 10G, a factor that has helped to bring connectivity costs down dramatically.
The government’s $200m investment in the national backbone means that this international connectivity reaches into towns and cities right across the country, and even brings it to the doorsteps of Tanzania’s landlocked neighbors.
“As a result, Tanzania is becoming a major technology and communications hub for the entire region,’’ she says
Recently, the state-owned Tanzania Telecommunication Company was awarded a $6.7m deal to supply 1,244 Mbps of internet bandwidth into Rwanda, a transaction with benefits for both countries. This shows that Tanzania is growing its own economy while helping other countries to drive down their communications costs.
Rupia says that cheaper broadband is also benefiting Tanzania’s education sector citing an example of The University of Dar Es Salaam which was paying $10,000/= a month for 13Mbps of slow satellite connectivity.
“Now, SEACOM have linked it to the Internet for a fraction of the price and with enough bandwidth to support richer Web apps than the university could before,’’ she says.
She says that more Internet bandwidth also means that there are opportunities to reach young people in remote areas that are underserviced by schools and teachers with e-learning services at an affordable cost.
Government has embraced telecommunications as part of a wider strategy to deliver electronic services including education, healthcare, and e-government to the people. It plans to do so through telecentres spread throughout the country.
There is a flurry of innovation underway in Tanzania’s telecommunications market. Mobile networks have turned themselves into major data players, innovating with services such as voice-over-IP, video messaging and video calling.
African telecommunications operator Smile Telecom recently launched mobile broadband services including live video chat and TV streaming following its deployment of the first commercial LTE 800 Mhz network in Africa.
She says that the impact on Tanzanian consumers and businesses has been remarkable as before mid-2009, Internet cafes with high access costs were the only viable way for SMEs and ordinary consumers to use the Web, and even corporates and educational institutions had to strictly ration bandwidth.
“Now small and medium enterprises are trading on the web, relying on instant messaging, and even using multimedia Web applications for the first time. Many large multinationals are looking at investing in the country for the first time, now that a sound communications backbone is in place.
For consumers, social media, mobile banking and other applications are now a part of their everyday lives,
“The opportunities this has created – economic and otherwise – are enormous. There is reason to believe that we are just getting started. With only an estimated 2.5% of the population having access to the Internet, there is plenty of scope for growth," Kahama-Rupia says.
“ So we see Africa as a rich source of content and ICT activity and we continue with our commitment to closing Africa's digital divide by building a truly African Internet. We make sure that we reduce Internet costs by up to 95% to wholesale customers while providing a far greater speed of Internet connection. It may take a long time for the benefits to reach ordinary citizens, particularly those who live in remote rural areas,” she concluded.