Vodacom, Tanzania’s largest telecom operator, has completed the acquisition of Smile Communication Tanzania for $27 million (TZS 68.8 billion). This strategic move aims to bolster Vodacom’s network infrastructure and expand its data coverage, leveraging Smile’s spectrum holdings and 4G LTE network.
Acquisition Details
Vodacom Tanzania acquired Smile Communication Tanzania for $27 million, granting access to critical spectrum assets held by Smile.
The transaction, finalized on April 3, 2024, received regulatory approvals from the Fair Competition Commission, Tanzania Communications Regulatory Authority, and Capital Markets and Securities Authority.
Spectrum Access and Network Expansion
The acquisition provides Vodacom with access to Smile’s premium 800MHz and mid-band spectrum, enhancing its capacity for 4G and 5G network services.
Vodacom aims to leverage Smile’s nationwide 4G LTE mobile broadband network to expand its data coverage and improve service quality.
Combined Spectrum Holdings
Smile’s spectrum holdings complement Vodacom’s existing frequencies, acquired in October 2022, which include the 700MHz, 2.3GHz, and 2.6GHz bands.
With the addition of Smile’s spectrum, Vodacom strengthens its position in Tanzania’s telecom market and enhances its capabilities for delivering high-speed data services.
Market Share and Ownership Structure
Vodacom Tanzania, with 19.1 million mobile users in Q4 2023, commands a 30% market share and holds spectrum across various frequency bands. Vodacom Group Limited, based in South Africa, owns 75% of Vodacom Tanzania, with the remaining 25% publicly traded on the Dar es Salaam Stock Exchange.
Vodacom’s acquisition of Smile Communication Tanzania underscores its commitment to enhancing network infrastructure and delivering advanced telecommunications services in Tanzania.
By leveraging Smile’s spectrum assets and nationwide network, Vodacom aims to accelerate the expansion of its 4G and 5G services, catering to the growing demand for high-speed data connectivity in the region.
This strategic move reaffirms Vodacom’s position as a leading player in Tanzania’s telecom industry, poised to drive digital inclusion and economic growth through enhanced connectivity solutions.
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