The impact of privatization of telecommunication sector in Tanzania: the case of Tanzania Telecommunication Company limited (TTCL)

The main objective of the study was to examine the impact of privatization on telecommunication industry, TTCL being the case study. Specifically, the study aimed at examining the role of governance in telecommunication operations, management competence and their impact in telecommunication sector, the kind of restructuring and its relevance in telecommunication sector, privatization impact on employment levels and returns from the start to date and lastly the fiscal effect of privatization on telecommunications to the Tanzania Gross Domestic product since 2001 up t 2006 as publicized by the Tanzania bureau of statistics. The data collection methods involved questionnaire, interviews and from archives. The results obtained from the study were analyzed using the statistical package for the social sciences (SPSS). the findings of the study reveal that the government adopted the joint venture method in the privatization process of TTCL and also after privatization, TTCL still faced financial difficulties furthermore TTCL increased the base number of revenue sources and likewise privatization led into staff layout and retrenchment and not only that but also the management comprised of competent staff with all necessary skills and also privatization led into increase in GDP and lastly the government had since then trying to improve the telecommunication regulatory environment. It is recommended that , the government should create good and harmony business environment for investors also companies have to employ competent staff and management for running business effectively likewise TTCL should engage in analyzing possible reasons for making persistent losses and ensure that revenues are increased and costs minimized furthermore TTCL should assess and match the staff requirements against productivity that is marginal revenue should be over and above marginal costs and lastly the telecommunication regulatory environment should be improved to allow smooth business operations.