In a landmark moment for the telecommunications industry, the government of Tanzania sealed a momentous deal on Monday worth 50 billion TZS, solidifying an agreement with major telecom operators for the utilization of critical infrastructure established over the years.
This historic pact, formalized during a signing ceremony held in Dar es Salaam, signifies a remarkable partnership between the Ministry of Information, Communications, and Information Technology and a consortium of prominent telco operators, including Airtel Tanzania, Honora Tanzania (Tigo), and Vodacom Tanzania.
The Minister of Information, Communication and Information Technology, Nape Nnauye, expressed his heartfelt appreciation for the successful culmination of this significant occasion. Minister Nape highlighted the essential nature of this event, which involved the signing of two pivotal documents: the Deed of Settlement and the Addendum of Memorandum of Agreement between the Government and the Telecom Operators Consortium.
In his address, Minister Nape extended his gratitude to President Dr. Samia Suluhu Hassan and her unwavering commitment to advancing the Information and Communication Technology (ICT) sector. He emphasized the government's dedication to ensuring that ICT serves as a catalyst for economic growth in the nation.
Minister Nape commended Mr. Adolf Ndunguru, Permanent Secretary in the President's Office, Regional Administration and Local Government (PO-RALG), for his effective leadership in facilitating the successful conclusion of negotiations. He also acknowledged the contributions of all team members and government experts who played a crucial role in reaching this agreement.
Additionally, Minister Nape expressed his thanks to Mr. Mohammed Khamis Abdulla, the Permanent Secretary of the Ministry of Information, Communication, and Information Technology, for his exemplary coordination of the agreement. He lauded the Consortium of Telco Operators, led by Mr. Kamal Okba, Chief Executive of Honora Company (Tigo), for their cooperation with the government, ensuring the realization of this groundbreaking agreement.
The historic agreement, which was initiated on October 4, 2011, was aimed at enhancing telecommunications infrastructure in underserved areas where the national network did not reach. However, it faced various challenges during implementation, leading to further negotiations between the involved parties.
During the signing ceremony, the Consortium committed to providing a cash sum of USD 20 million over five years, equivalent to approximately 50 billion TZS, as payment for the usage of the infrastructure since its construction. Additionally, they pledged to invest 13 million US dollars (approximately 32.5 billion TZS) 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. This underlines 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 transfer approximately 3,000 kilometers of communication infrastructure to the Government. Simultaneously, the Consortium of Telco Operators will utilize part of the infrastructure to provide communication services for a specific time and cost, allowing them to recover their earlier investment.
Furthermore, the infrastructure will be integrated with the National ICT Broadband Backbone, thereby expanding the scope of service provision for the National ICT Broadband Backbone.
Minister Nape reiterated the government's commitment to enhancing the reach and quality of ICT 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.
Additionally, the government has increased the national fiber optic network's capacity from 200Gbps to 800Gbps, with plans to expand it to 2Tbps. The ongoing National Fiber 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.
The minister emphasized that strengthening the ICT and communication sectors would drive economic development, promote business growth, and enhance digital adoption for societal development. The government's objective is to ensure that 85 percent of Tanzanians have access to high-speed internet by 2025.
Mr. Nape provided directives for the effective implementation of the agreements, emphasizing the need to expedite the completion of the Investment Agreement. He also called on the Ministry, the Tanzania Telecommunications Corporation (TTCL), and the Consortium to finalize the Indefeasible Right of Use (IRU) Agreement, ensuring that the infrastructure serves its intended purpose effectively and equitably.
The minister also urged all Telecommunications Service Providers to continue investing in infrastructure to reach end-users, the citizens, while reiterating the government's commitment to creating a conducive environment for all service providers to contribute to the realization 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.