COMPETITION DYNAMICS OF THE LICENSING FRAMEWORK IN TELECOMMUNICATION SECTOR IN TANZANIA: THE GOOD, THE NOT SO GOOD AND THE NEED FOR REFORMS

Abstract

This article explores the competition dynamics of the licensing framework in Tanzania's telecommunications sector, critically assessing its role in market regulation, entry facilitation, and competitive practices. It argues that licensing serves multiple purposes, such as regulating market structure, controlling investment, and generating government revenue. However, the Tanzanian framework, which mandates individual licensing for nearly all telecom-related transactions, is critiqued for creating barriers to market entry and inhibiting competition due to its complexity, multiplicity, and high costs. Drawing comparisons with general authorization models in developed economies, the paper identifies the benefits of a streamlined, less burdensome licensing regime that promotes technological innovation and market competition. The article concludes by advocating for reforms, including the adoption of a general authorization framework, to better align with modern technological advancements and ensure effective competition, consumer protection, and service affordability.