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Vodacom Tanzania Warns SIM Card Directive Could Hurt Operations

Vodacom Tanzania Warns SIM Card Directive Could Hurt Operations

(Bloomberg) -- Tanzania’s largest telecommunications operator, Vodacom Tanzania Ltd., warned that a government directive for the registration of all SIM card owners before the end of the year could affect its operations negatively.

The Tanzania Communications Regulatory Authority told operators it will not extend the deadline even with only 12% of the East African nation’s subscribers currently registered, according to Vodacom. The company has listed only 2 million of its 14 million users.

“This directive has significant implications for costs and could potentially lower our customer base growth next year,” Vodacom Managing Director Hisham Hendi said in an emailed statement. “It’s a big challenge for us.”

Vodacom has 33% market share, followed by Millicom International Cellular SA’s Tigo brand and Bharti Airtel Ltd.’s unit.

To contact the reporter on this story: Ken Karuri in Dar es Salaam at kkaruri@bloomberg.net

To contact the editors responsible for this story: David Malingha at dmalingha@bloomberg.net, Helen Nyambura, Jacqueline Mackenzie

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