In a significant move within the telecom industry, Vodacom Tanzania has announced the acquisition of Smile Communications Tanzania Limited, further solidifying its position in the market. The deal, valued at TZS 68.8 billion (£22 million/€25 million), marks a strategic investment by Vodacom to enhance its service offerings and expand its reach across Tanzania.

Just two years after a noteworthy rescue deal by Saudi investors, Smile Telecoms Holdings Limited and Smile Telecoms IP Limited (jointly Smile) have agreed to the acquisition terms with Vodacom. This acquisition underscores Vodacom's commitment to innovation and growth in the Tanzanian telecommunications landscape.

Vodacom's acquisition of Smile brings together two industry leaders, combining Vodacom's extensive network infrastructure with Smile's super-fast 4G LTE network. With coverage spanning key regions including Pwani, Dar es Salaam, Morogoro, Dodoma, Mwanza, Mbeya, Kilimanjaro, and Arusha, customers can expect enhanced internet and voice services, bolstering connectivity and reliability.

Despite Smile's relatively modest market share, recent reports suggest that this acquisition will have a minor impact on Vodacom's overall market dominance. As of March 2023, Smile boasted a total of 15,171 subscribers, representing a 0.025% market share. However, analysts anticipate that the integration of Smile's assets into Vodacom's robust infrastructure will pave the way for future growth opportunities.

According to data from 2022, Vodacom leads the Tanzanian telecom market with a commanding 39% share of subscriptions. Following closely behind are Tigo with 26%, Airtel with 22%, Halotel with 9%, and TTCL with 4%. With this acquisition, Vodacom aims to strengthen its competitive position and further solidify its market leadership.

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