Broadcast Media Africa has learnt that Tanzania’s largest telecom operator, Vodacom, has acquired Smile Communication Tanzania for US$27 million.
According to Tanzania Business Insight, the agreement provides Vodacom Tanzania with access to important spectrum held by the small operator, which will help it grow 4G and 5G network services.
The article adds that the transaction is a strategic move by Vodacom to reinforce its network infrastructure and expand data coverage.
Vodacom says the purchase was concluded on 3 April 2024 after receiving all essential regulatory clearances.
Tanzania Business Insight also reports that the transaction has been approved by the Fair Competition Commission (FCC), the Tanzania Communications Regulatory Authority (TCRA), and the Capital Markets and Securities Authority (CMSA).
The agreement gives Vodacom access to Smile’s premium 800MHz and mid-band spectrum and allows it to use Smile’s 4G LTE countrywide mobile broadband network.
Smile’s spectrum will be added to the frequencies that Vodacom acquired in Tanzania for US$63.2 million in October 2022 to access the 700MHz, 2.3GHz, and 2.6GHz bands.
Vodacom Tanzania’s spectrum holdings include 900MHz, 1800MHz, 2100MHz, and 3500MHz. In Q4 2023, it had 19.1 million mobile users, representing a 30% market share.
Vodacom Tanzania is 75% owned by South Africa’s Vodacom Group Limited, with the remaining 25% stake floated at the Dar es Salaam Stock Exchange.
