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Vodacom Tanzania outsources its network

Operator seeks to cut opex and improve network quality amid fierce competition

Vodacom Tanzania outsources its network
Vodacom Tanzania hopes to reduce opex by outsourcing its mobile network.

Mobile operator Vodacom Tanzania has outsourced the operation and management of its network to Nokia Siemens Networks (NSN) as part of a five-year managed services contract.

Vodacom Tanzania, which has some 9 million subscribers, will hand over control of its network management centre, radio, transmission and core networks to NSN. The vendor will also be responsible for network planning and optimisation.

In a bid to reduce the network's energy costs, NSN will deploy 338 hybrid power generators, which use diesel and solar power to generate electricity for base stations.

As part of the agreement, 124 staff employees will transfer from Vodacom to NSN.

Dietlof Mare, managing director, Vodacom Tanzania, said the deal would help the telco to strengthen its position amid fierce competition in Tanzania's mobile sector.

Armando Almeida, head of global services, NSN, said the vendor would apply the experience it has gained in other emerging markets to improve the network.

"Our aim is to allow Vodacom to focus on its core business and deliver greater value to its shareholders," he said.

"We look forward to integrating Vodacom Tanzania operations team into our global services team. We are excited about the synergies and opportunities that will be created as we begin to work together," he added.

With two fixed-line operators, TTCL and Zantel, and at least seven mobile networks, Tanzania is one of Africa's most competitive telecom markets. Among Vodacom's main competitors are Bharti Airtel, Tigo and Zantel.

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