Tanzania’s leading telecom operator, Vodacom Tanzania PLC (VTPLC), has bolstered its market presence with the strategic acquisition of Smile Communication Tanzania Limited.
Completed on April 3, 2024, the transaction, valued at TZS 68.8 billion ($27.4 million), was structured as a debt-free, cash-free deal. This acquisition enhances Vodacom’s network capabilities significantly, preparing it for an aggressive rollout of 4G and 5G technologies.
The acquisition comes two years after Smile Communications received a crucial rescue package from Al Nahla Group, a Saudi investment fund. This move by Vodacom is set to markedly improve customer experiences by expanding mobile coverage and increasing network capacity.
Under the terms of the acquisition, Vodacom gains access to Smile’s prized spectrum assets, notably the 800MHz band and various mid-band frequencies crucial for future expansions.
Further leveraging Smile’s established 4G LTE network, Vodacom aims to consolidate its reach in strategic regions including Pwani, Dar es Salaam, Morogoro, and Dodoma. This strategic integration is expected to strengthen Vodacom’s competitive edge in the ongoing expansion of 4G services across Tanzania, though the immediate gain in subscribers is anticipated to be minimal.
As of December 2023, Vodacom leads the Tanzanian telecom market with a 30% share, equating to 19.1 million subscribers. It is followed by competitors such as Tigo, Airtel, Halotel, and TTCL.
Founded in 2013, Smile was the first to introduce 4G LTE mobile broadband services in Tanzania. Now, as part of Vodacom, Smile’s network assets complement Vodacom’s spectrum portfolio. Notably, Vodacom had previously expanded its frequency holdings by securing access to 700MHz, 2.3GHz, and 2.6GHz bands in a 2022 spectrum auction, further enhancing its capacity for advanced mobile services.
