Relationship between network coverage and teledensity growth – case of giant telecommunication companies of Tanzania

This study examined the relationship between network coverage and Teledensity level in Tanzania. The study adopted cross-sectional explanatory survey where questionnaire was used to collect data from five out of 26 regional headquarters of Tanzania namely: Arusha, Dar es Salaam, Dodoma, Mbeya and Mwanza. The target population of the study was the mobile phone subscribers from the four giant incumbent mobile phone network operators namely, Vodacom, Zain (Airtel), Tigo and Zantel. The study found out that; there is significant association between Network coverage and status of Teledensity level. It has further been found out that financial problems, unavailability of network coverage and regulatory barriers to telecommunications industry are fundamental factors leading to low Teledensity level in Tanzania. With regard to the findings; the study concludes that infrastructural development in rural areas and policy amendments that will lead to tariffs and costs reduction are among the important aspects that have to be considered for improving Teledensity level in Tanzania. The study recommends feasible and economical network extension in rural areas where most population is staying. It is also recommended to adopt reasonable and affordable prices for services provided by mobile phone network operators.