Vodacom, Tanzania’s biggest telecom operator, has completed the acquisition of Smile Communication Tanzania Ltd for TZS 68.8 billion ($26,631,513).
The deal gives Vodacom Tanzania access to valuable spectrum held by the tiny operator to support its plans to expand 4G and 5G network services.
Data is one of the biggest drivers of revenue for mobile network operators in Tanzania alongside mobile money.
Vodacom said in a statement that the deal was finalised on April 3, 2024 after getting all the necessary regulatory approvals.
The Fair Competition Commission (FCC), the Tanzania Communications Regulatory Authority (TCRA) and the Capital Markets and Securities Authority (CMSA) have approved the acquisition, according to Vodaom.
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The deal is a strategic move by Vodacom to strengthen it’s network infrastructure and expand data coverage, it added.
The agreement grants Vodacom access to Smile’s valuable 800MHz and mid-band spectrum.
Additionally, Vodacom will use Smile’s 4G LTE nationwide mobile broadband network.
The new spectrum from Smile will add to the frequencies that Vodacom acquired in Tanzania in October 2022 for $63.2 million to secure access to frequencies in 700MHz, 2.3GHz, and 2.6 GHz.
In a 2018 auction, Vodacom spent $10 million for rights to 20MHz in the 700MHz band.
Vodacom Tanzania’s spectrum holdings also include 900MHz, 1800MHz, 2100MHz, and 3500MHz.
Vodacom had 19.1 million mobile subscribers in Q4 2023, equivalent to a market share of 30%.
Other major players in the country by market share are Tigo (28%), Airtel (27%), Halotel (12%), and TTCL (3%).
Vodacom Tanzania is 75% owned by South Africa’s Vodacom Group Limited, with the remaining 25% stake floated at the Dar es Salaam Stock Exchange (DSE).
