BMI View: Growth in Tanzania’s mobile market remains slow for a country with penetration rate of less than 60%. BMI attributes this to limited network coverage in remote and underserved areas, where majority of the population live. Although some operators plan to invest in network deployment in rural areas, we caution that low ARPUs and the high cost of network maintenance due to poor social infrastructure are major disincentives to expansion. Furthermore, there is a strong case to pursue revenue growth by providing advanced data services in urban areas, as opposed to rural roll-out, to offset the impact of declining …
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