Marketing competition in telecommunication industry: the case of mobile phones in Tanzania

This research studies market competition in telecommunication industry, the case of mobile phone industry in Tanzania. The researcher was interested in investigating the effects of market competition in mobile phone companies in Tanzania namely Vodacom (T), Celtel (T), Tigo (T), Zantel (T) and TTCL. The study took the form of a cross-sectional survey design using self-administered questionnaires. It was carried out in five mobile telecommunication companies and involves 150 subscribers in Dar es Salaam, coast and Morogoro regions. Data were analysed using the Statistical Package for Social Sciences (SPSS) for descriptive analysis and hypothesis testing using ch-square tests. The findings revealed that free and open competition benefits individual consumers and the global community by ensuring lower prices, new and better products and services, and greater consumer choice than occurs under monopoly conditions. Also service providers used various strategies in communicating with customers for example network coverage was one of their marketing strategy followed by offering quality service and good price. The study recommends that, the companies should invest collectively in network expansion in order to cut costs and as a result, haphazard building of phone masts in residential areas which are said to have both health and environmental impacts will be reduced. Secondly, the subscribers should be educated about their rights especially when rights are denied. Some of consumers’ rights include privacy, fair charges, good services and adequate information.