Vodacom Tanzania PLC (VTPLC) has acquired Smile Communication Tanzania Limited for 68.8 billion Tanzanian Shillings, positioning itself as a leading telecom provider in Tanzania. The deal, structured as a “debt-free, cash-free” acquisition, gives Vodacom access to Smile’s assets and spectrum licenses, enhancing its capacity to offer advanced 4G and potential 5G services.
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This move is part of VTPLC’s long-term strategy to enhance its network capabilities and deliver improved service quality to its customers. By integrating Smile’s existing infrastructure into its network, VTPLC aims to extend its 4G coverage across key regions in Tanzania, including Pwani, Dar es Salaam, Morogoro, Dodoma, Mwanza, Mbeya, Kilimanjaro, and Arusha.
While Smile Communication boasted a modest subscriber base of 15,171 subscribers, accounting for a mere 0.025% of the Tanzanian telecom market share, VTPLC sees strategic value beyond numerical gains. Smile, known for pioneering 4G LTE mobile broadband services in Tanzania, brings valuable expertise and spectrum holdings to VTPLC, bolstering its technological capabilities and competitive edge in the telecom industry.
With this acquisition, VTPLC strengthens its spectrum portfolio, complementing previous investments in spectrum expansion. Notably, in October 2022, VTPLC invested $63.2 million in acquiring additional frequency bands, including 700MHz, 2.3GHz, and 2.6GHz, to deliver advanced mobile network services.
Furthermore, VTPLC’s strategic spectrum allocation, including bands at 900MHz, 1800MHz, 2100MHz, and 3500MHz, underscores its commitment to innovation and meeting evolving market demands. By leveraging high-frequency bands like 2300MHz and 3500MHz for fixed 4G and 5G services, VTPLC aims to support the growing demand for broadband services and IoT applications, ensuring improved coverage, speed, and quality of service for its subscribers.
With strengthened capabilities and expanded spectrum holdings, VTPLC is well-positioned to drive innovation and deliver enhanced telecommunications services, shaping the future of connectivity in the region.
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