Dodoma — COMMUNICATION service costs are expected to be reduced significantly in the country, following the government's decision to slash Right-of-Way (RoW) fee from 1,000 US dollars (2.34m/-) to only 200 US dollars (467,211/-) per kilometre.
RoW fees are charges levied on telecommunication companies by the government for utilising road reserved land under the management of Tanzania Roads Agency (TANROADS) to install vital infrastructure such as fiber optic cables.
Speaking in Dodoma on Tuesday, Tanzania Communications Regulatory Authority (TCRA) Director General, Dr Jabiri Bakari said RoW was one of the challenges facing service providers in the country, and he expressed optimism that the move to lower the costs will have a positive impact on the end-users as well.
"Last year we faced challenges with service providers lacking sufficient bandwidth for better quality and 5G frequencies. This has been solved by a successful auctioning of spectrum.
"We also encountered issues with the Right of Way, where service providers were previously required to pay 1,000 US dollars per kilometre annually. However, the fee has now been reduced to 200 US dollars annually. We are optimistic that slashing of these costs will substantially reduce communication service costs," he said.
Apart from the reduction of cost, he noted that the strategy is going to accelerate the expansion of high-speed broadband networks.
On the other hand, Internet Service Providers (ISPs) will find it more economically viable to extend their coverage to remote areas, where the return on investment was previously hindered by exorbitant fees.
"This expansion will pave the way for improved internet connectivity, enabling businesses, schools, healthcare facilities, and individuals to access online services and participate in the digital economy," he added.
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Dr Bakari also said that for the year 2023/2024, TCRA will continue to manage cyber security through Tanzania Computer Emergency Response Team (TZ-CERT) by evaluating IT systems and infrastructure, with the aim of identifying security vulnerabilities and advising on corrective measures and protection against cyber security threats.
In addition, he said that TCRA expects to establish Digital Clubs in schools and in higher learning institutions, in order to build students' IT capacity as well as manage the strengthening and availability of radio communication throughout the country.
Zanzibar Broadcasting Corporation (ZBC) Technical Manager, Mr Daudi Mkwela, expressed his concern about the fees, emphasising that the charges were too high and acted as a barrier for expansion of communication networks.
"The charges were too high and posed a substantial barrier to the expansion of communication networks," he remarked.
With 80 per cent reduction in RoW fees, Tanzania aims to stimulate investment in telecommunications infrastructure, foster competition, and ultimately lower the costs of communication services for all users.
It is part of the government's broader efforts to bridge the digital divide and accelerate socio-economic development. Furthermore, the lowered fees will foster competition among telecommunication companies.
Reduced barriers to entry will provide new players with an opportunity to enter the market and offer innovative and affordable services.
