Tigo Campaign

Mobile operators in Tanzania are at great war, price wars that is. When Tigo lowered its call costs to Tsh. 1 per second (1USD = Tshs. 1350), all the other networks branded it as the inferior network. Tigo is considered the village boy by the other players, its the only mobile network in Tanzania that has not bothered to sell expensive data plans, not bothered to improve its data platform (still on GPRS) and not even bothered to offer any corporate services to its subscribers and instead concentrated on the small consumer who is the majority. This concept has worked for them greatly, they have turned out as one of the biggest networks in Tanzania by subscriber base.

Zantel, a CDMA/GSM network which is leading in EVDO data services in Dar es salaam was second to introduce the 1 shilling per second calls and a 3.45 shillings across other networks. With a very small subscriber base compared to the other networks, this was not very notable even with really colorful branding, very well done campaigns featuring popular artists including Lady Jaydee (Leading Musician) and Nancy Sumari (Former Miss Tanzania & Miss World Africa) among others.

Early this month, Vodacom followed and introduced 1 shilling per second for Vodacom to Vodacom calls and went down to serious campaigns featuring AY, a popular Tanzanian hip hop artist. The most surprising thing is that in a week of this launch, Tigo hit back with a half a shilling campaign titled “Tigo Thumni” with calls from Tigo to Tigo costing only half a Tanzanian shilling, meaning a call is 30 shillings a minute, which is literally the cheapest call rate in East Africa coming to about 1.65 Kenya shillings a minute.

Zain which for long stuck to its “corporate” outfit, today decided to unveil its 1 shilling per second campaign, not an offer but a rate reduction on Zain to Zain calls. So literally speaking, Tanzania is officially the country with the cheapest calling rates in East Africa if not Africa generally.

Data rates are also reasonable compared to Kenyan rates with Zantel’s EVDO service being the fastest in Dar es salaam and only going for Tshs. 10,000 for 200MB and Tshs. 70,000 for 2GB, way cheaper compared to Safaricom’s 3G which is the only service that comes closest in Kenya to what Zantel is offering.

Tigo is also rumored to be launching a mobile money transfer service in Tanzania to try seal the wholes which have seen Vodacom’s M-Pesa and Zain’s Zap fail to hit the market as expected and reflected by the growth in Kenya.

While the call rates may be cheapest in Tanzania, customer care is worst in Africa here in my opinion, a shame because Tanzanians are among the most hospitable people I know.

Michael Joseph, CEO, Safaricom Ltd, has asked the government, specifically the licensing and regulatory commission, CCK to treat each operator equally and charge new players same fees Safaricom paid for their 3G licence, a whooping $25 million.

Its a nice thing that Safaricom has served us with all its might, while enjoying a monopoly and making a killing out of it. Safaricom has so far recovered their license fee and made more than enough profits from the users by over charging and in my view, we should let other players get easier terms since they have lesser subscribers and times have changed. Bandwidth is cheaper and more available too.

I really do not think its fair to the consumers not to allow the other players come in with easier terms because Safaricom will continue to control the prices.

As much as Safaricom has the best mobile internet service, its also the most expensive available. CCK, do us good by licensing other players and lets see where this takes our country.