Tanzania - national backbone network

Tanzania Allocates $17 Million for ICT Backbone

Tanzania has allocated US$17 million dollars for the construction of an ICT backbone to link all parts of the country to telecommunication services.

The infrastructure backbone is meant to improve communication services provided by Tanzania Telecommunication, a government- and private-run telecommunication utility company.

The project's cost is estimated at $220 million, which the government said it does not have the capacity to finance from its national treasury. Rather, the money will be sourced from local banks and donors.

Peter Msolla, minister of communication, science and technology, said that the project will give rural dwellers equal access to telecommunication services as those in urban areas.

Msolla said the new infrastructure will aid TTCL in its goal of increasing its customer base from 140,000 to 400,000 by 2010. It will also enable the company to compete with those in the telecommunication sector that already provide services in rural areas.

"This is a big project for [TTCL], whose aim is to construct an ICT backbone to link all parts of the country to the network within two years," Msolla said.

The Tanzanian government has a 65 percent share in TTCL, while Canadian telecom company SaskTel holds 35 percent. The company has taken part in several joint management projects due to financial problems that also resulted in the laying off of 400 workers.