Relationship between technology advancement and pricing of telecommunication services in Tanzania: A Case of Vodacom Tanzania

This study aimed at finding out the relationship between technology advancement and pricing of telecommunications services in Tanzania, a case of Vodacom Tanzania. The following were objectives of the study: to assess technological advancement in telecommunications services, to assess demand for telecommunications services as a result of technological advancement and to assess relationship between technological advancement and price of telecommunications services. A total of 80 questionnaires were distributed to employees of Vodacom PLC and all were successfully collected. Collected data were analysed through descriptive statistics and content analysis for the narratives. Findings from the study revealed that there is relationship between pricing of telecommunications services and advancement of technology in Tanzania Telecommunications Industry. However, competition among other operators in adopting new technology was also suggested to be cause of the relationship of price and technology advances. Another factor for the relationship between technology and pricing is scale productivity extended by the advanced technology, which impact on pricing of telecommunications services. The study concluded that advancement in technology of telecommunications companies has a relationship with pricing of telecommunications services under such variables as Network Advancement, Service Demand, Service Quality and Organizational Effectiveness. Conclusively, the study has determined that advancement in technology has a significant relationship with the price of telecommunications services. Findings from this study will be beneficial to various stakeholders like policy makers, national communication regulatory authorities, and will provide knowledge to different groups of society including telecommunications service users and investors in telecommunications business.