A comparative analysis of financial performance of the telecommunication industry in Tanzania: the case of Mobile Phone Companies

This study was intended to compare financial performance of three mobile telephone companies in Tanzania from 2001 to 2003. Since early 1990s, Tanzania has adopted several policies, which included deregulating the strate control over the economy and creasing the role of the private sector. Telecommunications industry is one of the affected areas. There has been a dramatic increment from !he former solely government owned fixed lined TTCL lined to five companies, namely, Vodacom (T) Limited, MIC (T), ZANTEL Celtel and the private TTCL. The study utilized both secondary and primary data. Although the main sources were secondary data, personal interviews were used to supplement the secondary data MIC, Vodacom and Celtel "ere cases used in this study. Both qualitative and quantitative tools of analysis were employed to test the hypotheses. Results show that in all three companies there were increases in sales. Profitability, market share and productivity, in general, between 2001 and 2003.MIC showed a slight change compared to Vodacom and Celtel. Vodacom had the best performance of the three companies It was also revealed that advanced marketing strategies triggered by stiff competition m this industry have contributed to the observed pos1tive performance There were also some problems in liquidity and leverage positions for all three companies. The companies showed problems in meeting their obligations. The situation is likely to improve as years pass by because their 0perations in the market are still at earl) stages. However privatization alone is not enough. Policy makers are recommended to set policies which will provide conducive business environments. Also. the regulatory body, Tanzania Communication Regulatory Authority should make sure that telephone companies comply with the company ordinance CAP 212 which requires disclosure of information to the general public.