Strategic Marketing Activities in Vodacom Telecommunication Company in -Tanzania

Topics: Marketing, Strategic management, Marketing plan Pages: 12 (4070 words) Published: April 16, 2011
1.1: Overview of telecommunication industry in Tanzania
Before the liberalization of the telecommunication sector, the telephone communication service was the monopoly of the TTCL, a state-owned company under the Tanzania Posts and Telecommunications Corporation (TPTC). The TTCL held a monopoly in the provision of communication and was also responsible for the regulation of the telecommunication sector. In the context of a wider economic liberalization policy in the country, the Communications Act of 1993 paved the way for the government's move to liberalize the communications sector. This led to the split of the TPTC into the Tanzania Posts Corporation (TPC), the Tanzania Telecommunications Company Limited (TTCL) and the Tanzania Communication Commission (TCC). The National Telecommunications Policy (NTP), launched in 1997, pushed for further reforms in the sector. Today, telecommunications is one of the most liberalized sectors of the economy in Tanzania. Due to convergence of information and communication technologies and respective services, regulation of Tanzania Communication Commission and the Tanzania Broadcasting Commission (TBC1) activities were subsumed under one agency, the Tanzania Communications Regulatory Authority (TCRA). The TCRA is an autonomous government agency established by the TCRA Act no. 12 of 2003 as an independent authority for the regulation and licensing of postal, broadcasting and electronic communications industries in the United Republic of Tanzania. The establishment of the TCRA marked a new era for the communications sector in Tanzania that has been characterized by growth in investments and operations including penetration.

The Telecommunications industry has contribution to the economic, technological, and socio-cultural developments of Tanzania. For example, according to the data given by The Ministry of Finance and Economic Affairs, the contribution of the communications industry to the GDP in 2007 was as high as 20.1%. Nevertheless, Tanzania has a fully competitive telecommunications industry in which there are two fixed-line operators and seven operational mobile networks, with four additional players licensed. The national fixed telephone operators are the TTCL and Zantel. The mobile telephone market is the fastest growing sector, with more than 17 million subscribers in a population of about 43 million. The major operators are Vodacom, Zain currently called Airtel, TiGO and TTCL-mobile, Zantel-mobile and Sasatel. The penetration level is only around 30%, implying that there is still room for growth. Although Vodacom is still by far the largest mobile operator, maintaining a market share of more than 39%, Zain currently Airtel and Tigo are fast-growing. In 2009 Zain currently Airtel had a 28% market share, and Tigo had made greater gains, leaping to 24% from 17.7% in 2008. This means that the three operators control more than 87% of Tanzania's mobile market share.

1.2: Overview of Vodacom Telecommunication company ltd
For the first time in Africa, in 1994, just before the first democratic elections of South Africa, one of the most dynamic companies in South Africa did not exist. Today, Vodacom is valued at between 6 to 7 billion dollars, making it one of South Africa's top ten companies Vodacom won a bid to operate Tanzania's second GSM cellular network in July 1999. The 10-year license is Vodacom's first outside the Southern African Development Community (SADC) and is worth more than 50 million dollars. Having previously concentrated on dominating the South African market, resulting in a 60% share of Africa's most profitable cellular market, Vodacom is looking at all opportunities on the African continent which make economic sense. The company already operates a GSM cellular network in Lesotho in partnership with the Lesotho Telecommunications Corporation. Vodacom partnered Tanzanian company Planetel Communication Ltd and holds 50 percent of the...
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