The auction process successfully assigned four spectrum blocks to three operators. Licences were issued on 15-year terms, and the payment schedule was distributed across five instalments over two years.
While spectrum pricing remains challenging in many markets, Tanzania’s example demonstrates how governments can assign high-value spectrum without imposing unsustainable costs on operators. The structure and execution of this auction sends a positive signal to the investment community. It reflects an understanding that spectrum policy is not simply a revenue tool, but a means to deliver broader economic and social impact through connectivity. It also highlights regulatory best practice that can help inspire a more sustainable approach to spectrum policy across the region.
Spectrum as a foundation for digital transformation
Spectrum policy is a key enabler of digital connectivity. Ensuring that sufficient spectrum is available to mobile operators – at fair prices, with long-term certainty and predictable renewal conditions – has proven to be one of the most effective tools governments can use to promote network investment, expand coverage, and reduce the cost of mobile services.
Tanzania’s 3.6–3.8 GHz spectrum auction reflects this understanding. The process was clearly defined, time-bound, and concluded within seven months of the initial public notice. The spectrum assigned through this auction will support the delivery of enhanced mobile broadband services across the country, including early 5G deployments.
The availability of mid-band spectrum, in particular, is essential for meeting consumers’ and enterprises’ increasing data demands. The 3.5 GHz range (3.3–4.2 GHz) provides the optimal balance of coverage and capacity required for urban and semi-urban deployments of advanced networks and is considered a foundational band for 5G globally.
Aligning policy tools with national strategies
This auction process is aligned with Tanzania’s Digital Economy Strategic Framework 2024-2034, which outlines a roadmap for the country to leverage digital infrastructure to enable growth across education, health, agriculture, and financial services. Among the framework’s priorities is expanding affordable broadband infrastructure and mobilising private sector investment through enabling regulation.
The award process also reflects the policy direction outlined in Tanzania’s National ICT Policy (2016), which emphasises the importance of efficient spectrum allocation, competition promotion, and technology use to support socioeconomic inclusion.
The GSMA supports spectrum assignments that reflect these principles – providing clarity to the market, lowering the cost of access, and avoiding artificial spectrum scarcity. The decision to make all four 50 MHz blocks in the band available at once, with no set-asides, supports efficient use and fair competition among operators and aligns with international best practice.
Payment structure that supports investment
One of the most notable aspects of the auction was the instalment-based payment structure offered to winning bidders. Rather than requiring full upfront payment, TCRA allowed for a staggered payment plan: 40% of the spectrum fee to be paid within two weeks of the auction, followed by four additional payments of 15% over 18 months.
This approach aligns with recommendations outlined in the GSMA’s Global Spectrum Pricing report, which cautions against high upfront costs that can delay infrastructure investment. According to the report, high spectrum costs are associated with slower 4G/5G rollouts, reduced rural coverage, and lower network speeds.
By offering more flexible payment terms, Tanzania is enabling mobile network operators to allocate more capital toward immediate network deployment, helping to accelerate the delivery of improved connectivity services across the country.
Long-term licences and coverage obligations
The licences issued through the auction are valid for 15 years and may be renewed subject to compliance with technical, service quality, and deployment conditions. Longer spectrum license terms increase regulatory certainty, encouraging network deployment and upgrade investments. ATU- R Recommendation 002-0 confirms that the Licence duration should be at least 20 years to incentivise network investment. This longer time horizon improves planning certainty for operators and aligns with international best practices for encouraging capital-intensive investment in network infrastructure.
In addition, licence holders are subject to coverage obligations that include reaching at least six administrative regions by 2028 and all regional capitals by 2033. These targets will contribute to broader access to high-capacity networks, especially in secondary cities and underserved areas.
Implications for policy across the region
Tanzania’s approach offers several insights that may be useful for other regulators in Africa. In particular:
Transparent processes and clear auction documentation, such as the published Information Memorandum, help build confidence among stakeholders and minimise delays.
Payment flexibility supports investment in rollout, which is especially important in markets with limited access to capital or where operators are transitioning to newer network technologies.
Making sufficient spectrum available in one award round avoids the inefficiencies associated with spectrum fragmentation and under-utilisation.
Looking ahead
Spectrum assignment is one of many steps required to enable inclusive digital transformation. Continued collaboration between government, regulators, and industry will ensure that spectrum is assigned and deployed efficiently to support national development goals. The GSMA will continue to foster discussions on strengthening regulatory frameworks and endorsing policies that encourage investment, expand services, and support long-term digital inclusion across the region.
//By Caroline Mbugua, Director of Public Policy and Communications, GSMA