TANZANIA – Two Millicom-owned companies are to officially merge. Zanzibar Telecom Public Limited Company (Zantel) has announced the completion of a combination with its sister company MIC Tanzania Public Limited Company (Tigo).
According to a media statement, further to the receipt of approval from the relevant authorities, the process to transfer ownership of the shares in Zantel to Tigo is now complete.
The successful closing will now see both companies combine their operations in the mainland and in Zanzibar.
Commenting on the transaction, Simon Karikari, Managing Director of Tigo, highlighted that combining the twin companies is in Tanzania’s interest.
He explained that Tanzania market is highly fragmented and in need of consolidation.
The combination of Tigo and Zantel operations in Tanzania will aim to ensure a more balanced competitive environment that will benefit the country, support progress and innovation in the telecommunications sector.
It will also bring together the strengths of both companies to better serve customers both in the mainland and in Zanzibar.
“Through combining our operations in Tanzania – Tigo and Zantel – I firmly believe we will create a more inclusive future for Tanzanian telecommunications.
Both Tigo and Zantel customers will be able to enjoy enhanced services and a more consolidated market will help drive forward innovation in the sector more broadly,” the MD said.
He noted that the combined business will bring together the strengths of Tigo and Zantel to better serve customers both in the mainland and in Zanzibar.
“The combined group will offer improved coverage and better quality of service to customers in both urban and rural Tanzania, enabling also wider access to communication solutions for businesses as well as mobile financial services to Tigo and Zantel customers,” he said.
As both companies are coming together with the goal of supporting the development of Tanzania, the result should only lead to success.
He explained that the integration process between the two companies will start soon, however, customers can continue enjoying their services on Tigo and Zantel respectively.
“Customers’ SIM cards and mobile numbers will not change. There will be no interruption to customers’ experience on both networks during the integration process,” stated Mr Karikari.
According to Tanzania Communication Regulatory Authority (TCRA) statistics as of June 30 this year, a total number of mobile users-both Tigo and Zantel stood at 12,883,000 while the number of mobile money users reached 7,350,000.