- Tanzania Telecommunications Company Limited
company_name = Tanzania Telecommunications Company Limited
key_people = Bill Beckman -
CEO, Glen Raboud - CFO, Prof. Mathew Luhanga - TTCL Board Chairman
num_employees = under 2,000 (as at July 2007)
company_type = Public
foundation = 1993 (officially started operations on
January 1, 1994)
Dar Es Salaam, Tanzania
industry = Communications Services| products = TTCL
Broad band, TTCL Mobile, IP VPN, Prepaid Services, Prepaid Card Calling, Postpaid Services, Rafiki Public Phone, Leased Circuits, InternetBandwidth, Broadbandand Wholesale Administrator
homepage = [http://www.ttcl.co.tz/ ttcl.co.tz]
Tanzania Telecommunications Company Limited (TTCL) is the oldest and largest
fixed line Telecommunicationscompany in Tanzania. The Company comes forth from the former Tanzania Posts and Telecommunications Corporation in 1993. TTCL was wholly owned by the Government of Tanzaniauntil the partial privatizationof the company on February 23, 2001.
TTCL is governed by
statute– the Tanzania Telecommunications Actof 1993. The company is licensee for fixed basic telephone servicesin Tanzania mainlandand Zanzibarand hence it owns and operates the public switched telephone networkin mainland Tanzaniaand on Zanzibar[ [http://www.psrctz.com/Utilities%20&%20Major%20Transactions/ttcl.htm] the divestiture of the TTCL ] . Before the coming of mobile operatorsin late 1994, the company was enjoying monopolyon Tanzania Mainlandand a duopolyon Tanzania Zanzibar, where Zanzibar Telecoms Limited (Zantel) was the second licensed fixed basic telephony operator. The company has been in several joint managements due to its financialinstability. In early 2001, Celtel International, at that time Dutch MSI, which has its headquartersin Amsterdam, Netherlandsand Detecontook over Boardand Managementcontrol of TTCL [ [http://www.celtel.com/en/news/press-release12/index.html] Conclusion of the privatisation of Tanzania Telecommunications Company ] . In this partial privatisationthe government of Tanzaniasold 35% of its shares to the strategic investors. TTCL pulled out from joint managementwith the consortiumin August 2005 [ [http://www.celtel.com/en/news/press-release31/index.html] TTCL and Celtel now separate companies 22 August 2005] . Again in February 2007 the company fell in managementof the Canadian firm Saskteldue to the same reason.
In February 1999 TTCL was having an exchange capacity of 192,365 lines and 126,515 connected direct exchange lines (DELs). The company was having a
workforceof under 4,000 as at February 1999. The company's revenues were approximately US$112 millionin 1998, its earnings before interest, taxand depreciationwere approximately US$32 millionin the same year, and following a major capitalrestructuring it was having a ‘clean’ balance sheet[ [http://www.psrctz.com/Utilities%20&%20Major%20Transactions/ttcl.htm] the divestiture of TTCL] .
The company has its
headquarterand customer careallocated in Extelecoms Building in Dar Es Salaam, Tanzania. TTCL also has operational and engineeringbranches in all regions in the country. It has been working with Huawei Technologies Co. Ltd as the infrastructure vendorof the company and Ericssonas a long-term strategic supplierof the company [ [http://archive.ericsson.net/service/internet/picov/get?DocNo=21331-AE/LZT1237849/PDF&Lang=AE] Tanzania’s leading operator TTCL, enters the next generation with an Ericsson ‘Learning Solution] .
TTCL comes forth from the former
East African telecommunicationsprovider. In 1933, the former East African Post and Telegraph Company was incoporating the Tanganyikan, Kenyan and Ugandan Postal, Telegraph and Telephone providers. The East African Posts and Telecommunication Act causes the formation of the East African Posts and Telecommunications Administration in 1951.
East African Community(EAC) was founded and replaced the East African Common Service Organization, in the aftermath, the East African Post and Telecommunications Corporation (EAP&TC) was established and replaced the East African Posts and Telecommunications Administration.
The breaking up of
EACin 1977 forces EACmember countries again to re-establish their own national Postal, Telegraph and Telephone businesses. Therefore in 1978 in Tanzania a parastatal was established under the name Tanzania Posts and Telecommunications Corporation (TPTC). Telecommunication sector liberalizationprocess in 1993 in Tanzaniaagain causes the spliting up of the TPTC. In this context, the TPTC split into three separate entities, namely the Tanzania Posts Corporation, the Tanzania Telecommunications Company Limited (TTCL), and the Tanzania Communication Commission (TCC).
TTCL was responsible for
Telecommunicationservices and it was established based on Parliamentary Act, “The Tanzania Telecommunication Company Incorporation Act of 1993”. TTCL officially started operations on January 1, 1994[ [http://web.si.umich.edu/tprc/papers/2007/711/VanGorpMaitland_TPRC07_TZ.pdf] Paper submitted for the 35th Research Conference on Communication, Information and Internet Policy (TPRC) in Arlington, Virginia, September 28-30 2007] . TTCL's main statutory function was to establish, develop and operate telecommunicationand all incidental serviceswithin and outside Tanzaniain accordance with a licenceissued by the Tanzania Communication Commission (TCC).
Partial Privatization of TTCL
privatizationof TTCL on February 23, 2001was one of the first steps towards full liberalization of the market. In the aftermath, Celtel International (previously known as MSI Cellular) which was having its headquartersin Amsterdam, Netherlands, together with the German firm Detecon, obtained 35% sharesfrom the Government of Tanzania. In this context, the consortium took over Boardand Managementcontrol of TTCL on February 23, 2001. Based on this criterion the consortiumhad a veto over major Boarddecisions, it had the right to appoint the senior management, to set the annual business planand to control all capital expendituredecisions [ [http://web.si.umich.edu/tprc/papers/2007/711/VanGorpMaitland_TPRC07_TZ.pdf] The Regulatory Design Problem Revisited: Tanzania’s Pioneering Position in Africa] .
consortiuminvested US$60 millionand a second payment was dependenting on the financial performanceof TTCL for the year 2000 [ [http://www.celtel.com/en/news/press-release12/index.html] Conclusion of the privatisation of Tanzania Telecommunications Company] . In this first partial privatization, other shareholderswere local financial institutions 14%; international financial institutions, 10%; and TTCL employees, 5%. The government kept 36% of the shares until TTCL goes onto the Stock Exchangeand an initial public offering (IPO) is carried out. On August 5, 2005the Government of Tanzaniaand Celtel International signed an agreement whereby the shareholders agreed to the restructuring of the two companies and thereafter the TTCL and the Celtel became legally, financially and operationally totally separate companies.
In February 2007 the
Government of Tanzaniaawarded the Canadian firm SaskTela three year contractto manage TTCL. The contract is a performance based contract requiring the new management team to improve the finanical position of TTCL and grow its customer and revenue sources. SaskTel International started to manage TTCL effectively on July 1, 2007. In this contract, SaskTelwas responsible for managing all aspects of the TTCL operations, maintenance and expansion of the company in order to improve its financial, commercialand technical performance. Sasktelwas in partnership with TTCL even before the contract. In June 2003 Sasktel International was awarded a contract by TTCL to rehabilitate existing external line plant networks [ [http://www.sasktelinternational.com/InformationCoummicationTechnology/Global_Experience/Projects/TTCL_Network_Rehabilitation_Project/] TTCL Network Rehabilitation Project] .
Sasktelwas unable to purchase the 35% stakein TTCL when the operator was partially privatised in 2000, the TTCL workers and The Telecommunications Workers Union of Tanzania (Tewuta) were against the contractclaiming that Sasktelwill only add an unnecessary burden to both the government and the Tanzanian people [ [http://www.regulateonline.org/content/view/934/79/] Tanzania: TTCL Management Contract Awarded] .
Network and Service Development
The native TTCL
networkoperates on CDMA20001X technology with operating frequencyof 800 MHz. The company is deployed mobile networkand Huawei Technologies Co. Ltd is the infrastructure vendorof the company [ [http://www.cdg.org/technology/product_pavilion/operator_detail.asp?operatorid=404] CDMA2000 Operators] . TTCL has been working with long-term strategic supplier, HUAWEI to launch its "ENGINE" to support IN Network in April 2004.
In April 2003, TTCL awarded HUAWEI with a
contractfor the supply of a CDMA20001x/EV-DO network. The contractwas to fix CDMA2000 networksfor the company within the country. Along with the contract HUAWEI delivered an Intelligent Network platformwhich enabled the company to introduce value added servicessuch as Prepaidservices, a Voice mailSystem, a Short Message Service Centre, Customer Careand Billing Systemallowing postpaid services[ [http://findarticles.com/p/articles/mi_qn4175/is_20030409/ai_n12925864] Huawei supplies CDMA2000 network in Tanzania] . While awarding the contract, the first phase of this network, was already installed in Dar Es Salaamand was commercially opened in September 2006. HUAWEI supplied TTCL with mobile switching centre, base station controllers and base stations which were to be deployed in Dar Es Salaam, Dodoma, Arusha, Moshi, Tanga, Zanzibarand other cities in the country. The contract also required NECto provide its point-to-point low and medium capacity microwave radiosystems and HUAWEI cellular network.
Radio Network Upgrade
The TTCL national radio network was expanded by 34Mb/s and STM-1 microwave radio equipment in the aftermath of new
CDMA2000 networkand Intelligent network platformlaunched by HUAWEI. The expansion was to replace old systems, expanding the network into new areas and replacing equipment operating in non licensed radio bands [ [http://www.ttcl.co.tz/about_future_outlook.asp] Network and Service Development] . Therefore the upgrading enabled TTCL to provide cost effective digitalleased lines to mobile phone operatorsas compared to the expensive lines via satellite.
The customer care of TTCL consist of modern Call Centre which are allocated at the
headquarters, Extelecoms House, in Dar es Salaam. It is also equipped with an Automated Call Distribution facility, a Computer TelephoneIntegrated facility and Integrated VoiceResponse facility.
Saskteland TTCL has been working together even before Saskteltookover TTCL management. In June 2003 SaskTel International was awarded the contract by TTCL to rehabilitate existing external line plant networksin Dar es Salaam, Dodoma, Mwanzaand Moshi[ [http://www.sasktel-international.com/InformationCoummicationTechnology/Global_Experience/Projects/TTCL_Network_Rehabilitation_Project/] TTCL Network Rehabilitation Project] .In this agreement Sasktelwas required to rebuild damaged and destroyed aerial and duct type outside plantas well as rehabilitation of distribution cabinets and distribution points (DP’s).
Other Telecom Companies In Tanzania
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