Tanzania: TTCL issues wholesale tariff to access its backbone


The Tanzania Telecommunication Company Limited (TTCL) has announced new tariff structures for the National ICT Broadband Backbone (NICTBB) and allowed its customers to sublet the service.

In an advert posted in the print media, the company said the new plan named Indefeasible Rights of Use (IRU) prices, will allow customers connected to the backbone to lease out capacity for up to 10, 15 or 20 years.

"While the IRU price will be paid once, operations and maintenance charges will be paid annually over the IRU period," the advert read in part.

In a telephone interview yesterday, the TTCL Acting Chief Executive Officer, Mr Saidi Saidi, said the new arrangement will enable current and new users to sub-lease internet broadband to other users.

"In simple words, it means we are the landlord who owns a big house. But our tenant is free to sub-let the space he or she rents to other tenants over a period of time," Mr Saidi explained.
However, he said operation and maintenance charges would be calculated as five per cent of the IRU purchase price and paid annually.

Since the first submarine fibre optic cable landed in the country, tariffs for internet broadband have decreased by 50 per cent, according to the Acting CEO.
"Many people don't seem to appreciate this fact but they will in the end," he said during the interview.

Customers wishing to subscribe to a 10-year plan will pay US $540,000 as the lowest package, while those subscribing to 20 years will have to dig deeper into their pockets to the tune of US $12.44 million for the uppermost package.

Already some 14 regions have been linked, under phase one of the NICTBB. They include Dar es Salaam, Coast, Morogoro, Iringa, Mbeya, and Dodoma in addition to Singida, Manyara and Arusha. Also on the list are Kilimanjaro, Tanga, Shinyanga, Mwanza and Mara.

Currently, the backbone also offers services at established points of presence (PoPs) which include cross-border points at Rusumo (Rwanda), Kabanga (Burundi) and Kasumulo (Malawi).
It also offers services at Tunduma (Zambia), Namanga (Kenya) and will soon connect Uganda through the border point of Mutukula.

Implementation of phase two of NICTBB that commenced on October 1, last year, is expected to be completed in March, next year.