Tanzania's TCRA Report: Smartphone Affordability Challenge Persists Amid Digital Transformation

• Tanzania's telecommunications subscriptions reached approximately 117 million by June 2026.
• Internet subscriptions increased by 6.48 per cent to 62.79 million, with internet penetration reaching 89.7 per cent.
• Smartphone penetration remains relatively low at 44.74 per cent, with featurephone penetration at 83.38 per cent.
• The TCRA identifies affordable devices as crucial for bridging the digital divide and encourages stakeholders to explore practical solutions.

The number of smartphones connected to operators' networks increased by 5.16 per cent to 31.34 million, with smartphone penetration increasing from 42.50 per cent in March to 44.74 per cent in June 2026.

Tanzania's digital transformation is gaining momentum, with the latest Communications Sector Performance Report from the Tanzania Communications Regulatory Authority (TCRA) revealing a significant increase in telecommunications subscriptions. By June 2026, there were approximately 117 million telecom subscriptions, up from 111.9 million in March, representing growth of 4.51 per cent in just three months. The market is highly competitive, with Vodacom accounting for 33 per cent of subscriptions and Airtel at 20.5 per cent. Internet subscriptions also saw a notable increase, rising by 6.48 per cent to 62.79 million, while internet penetration reached 89.7 per cent. Data consumption increased by 11.65 per cent to 1,041 Petabytes, with mobile broadband remaining the primary means of accessing the internet.

The TCRA report highlights a pressing challenge: despite significant growth in telecommunications subscriptions and internet penetration, smartphone penetration remains relatively low at 44.74 per cent. The regulator itself notes that affordable devices are crucial for bridging the digital divide. This issue is not just about infrastructure; it requires innovative solutions to make smartphones more accessible to millions of Tanzanians. Government, operators, financial institutions, and other stakeholders must explore practical ways to address this challenge, including device-financing arrangements and encouraging local assembly. The expansion of 5G networks is also underway, with broadband population coverage reaching 34.18 per cent, but the real success of 5G will depend on its ability to generate economic and social value.

The digital divide in Tanzania poses significant challenges for businesses, individuals, and the economy as a whole. If millions of people cannot afford smartphones, they will not be able to fully benefit from advanced digital services. The government, operators, and financial institutions must work together to make smartphones more affordable, ensuring that everyone can participate in the digital transformation. This requires innovative solutions, including device-financing arrangements and encouraging local assembly. By addressing this challenge, Tanzania can unlock new opportunities for businesses and individuals, driving economic growth and social development.

Lawyers and compliance officers should watch for regulatory efforts to make smartphones more affordable, as this could impact the digital divide and create new opportunities for businesses and individuals.

Source: Original reporting via Tanzania Communications Regulatory Authority (TCRA) report