The government through the Universal Communications Service Access Fund (UCSAF) last week signed an agreement with successful bidders to provide telecom services to 112 Wards which were underserved.
Vodacom, Airtel and Tigo and TTCL will provide telecommunications services to 102 wards which are un-served or underserved for a total subsidy of $7.6 million (Tsh.14.2 billion) and another 10 wards located in border areas and special zones for $1.5 million (Tsh.2.7 billion).
The subsidies have been provided to attract the operators to move to the areas which currently do not attract private investment in telecommunication service.
Representatives of the telecommunication companies signed the agreement with Eng. Peter Ulanga the Chief Executive Officer of the Universal Communications Service Access Fund (UCSAF) in Dar es Salaam.
The agreement signed last week, followed a similar one sealed in 2014 where the mobile telephone companies won tenders to provide telecommunication services to 86 wards and another one in 2013 where 52 wards were involved.
Speaking at the event Peter Ulanga, UCSAF Chief Executive Officer and Fund Manager, an agency whose objective is to foster social and economic development in rural and urban areas through ICT intervention, said they have already connected 25 government schools in the initial phase and they were looking forward to connecting another 250 schools.
“Plans were underway to ensure that the health sector also benefitted from the ICT project, as look forward to connect all district hospitals in the country with the advent of telemedicine, this will revolutionize the sector,” he said. Speaking at the signing ceremony Tanzania’s Minister for Communication, Science and Technology Prof. Makame Mbarawa said this was a good progress towards their goal of universal telecommunication service in the country, with a hope that next time more wards, perhaps 300 will be covered.
The communication operators had been invited to bid for tenders to provide communication services to 158 wards in a project involving 14.21 million (Tsh.26.28 billion). A total of 158 wards (lots) were floated in a set of currently un-served or under-served wards within the country and 102 lots were bid successfully.
Tigo will cover 42 wards where it will receive $1.7 million (Tsh.3.145 billion) as subsidies to move to the areas whereas Vodacom will go to 36 wards and will receive $ 3.4 million (Tsh.6.33 billion) as subsidies.
The Tanzania Telecommunications Company Limited (TTCL) won 19 Wards and will receive $2.2 million (Tsh.4.15 billion) as subsidies while Airtel Tanzania has been approved to cover five wards and will get $ 306,000 (Tsh.566 million) as subsidies.
The mobile operators also will provide telecommunication services to 10 wards in border and special zone areas where Vodacom has two wards and will be entitled for $ 435,000 (Tsh.804.7million) as subsidies.
Tigo will go to 5 wards and will receive $ 532,861 (Tsh.985million) as subsidies and Airtel will provide telecommunication service to three wards and will get $ 512,922 (Tsh.984.9 million) as subsidies.
According to Prof. Mbarawa, the initiative has also created direct employment to over 200,000 people as employees of the firms whereas a total of 1.5 million have been indirectly employed by the communications firms.
In his comments UCSAF Acting Board Chairperson Prof. John Nkoma said that it is of great achievement to see that each community accesses communication services for its social and economic development.
“Taking communication services to rural areas is one of the major benefits that connect them with the rest of the nation,” Prof. Nkoma noted
Adding that though we have made a remarkable achievement in the area of communication, I would like to caution the society on the misuse of the internet as our experience has shows that majority of the community do not use internet for the intended purpose.
The telecoms companies which signed the contract include Vodacom, Tigo, Tanzania Telecommunication Limited (TTCL) and Airtel.
Source: http://www.busiweek.com/index1.php?Ctp=2&pI=3185&pLv=3&srI=69&spI=221&cI=11
