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Vodacom Tanzania warns SIM card directive could hurt operations

Tanzania’s government issues a directive for the registration of all SIM card owners.
Vodacom has a 33% market share in Tanzania. Image: Moneyweb

Tanzania’s largest telecommunications operator, Vodacom Tanzania, warned that a government directive for the registration of all SIM card owners before the end of the year could affect its operations negatively.

The Tanzania Communications Regulatory Authority told operators it would not extend the deadline even with only 12% of the East African nation’s subscribers currently registered, according to Vodacom. The company has listed only 2 million of its 14 million users.

“This directive has significant implications for costs and could potentially lower our customer base growth next year,” Vodacom Managing Director Hisham Hendi said in an emailed statement. “It’s a big challenge for us.”

Vodacom has 33% market share, followed by Millicom International Cellular SA’s Tigo brand and Bharti Airtel Ltd.’s unit.

© 2019 Bloomberg L.P.

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