IMPACTS OF COVID-19 ON TELECOMMUNICATION SECTOR OF

TANZANIA

TANZANIA TELECOMUNICATIONS CORPORATION (TTCL)

By

Esperancer Michael Wakuganda

A business case submitted on partial fulfillment for the award of the Degree of

Master of Business Administration in Corporate Management of Mzumbe

University

Mzumbe University

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CERTIFICATION

We, the undersigned, certify that we have read and hereby recommend for acceptance

by the Mzumbe University, a business case entitled Impacts of COVID-19 on

Telecommunications Sector of Tanzania: Tanzania Telecommunications

Corporation (TTCL) in partial/fulfilment of the requirements for award of the degree

of Master of Business Administration in Corporate Governance of Mzumbe

University.

Signature

________________________________________
Major Supervisor

Signature

________________________________________
Internal Examiner

Accepted for the Board of

Signature

____________________________________________
CHAIRPERSON, SCHOOL/CAMPUS BOARD

i
 DECLARATION

I, ………………………….………………………., hereby declare that this business

case is my own original work and that it has not been presented and will not be

presented to any other university for a similar or any other degree award. In case any

information given in this business case proves to be false or incorrect, I shall be

responsible for the consequences. Also, I shall be responsible for any errors, typos,

and omissions found in this business case.

Signature: ___________________________

Place: ________________________________

Date: ________________________________

ii
 COPYRIGHT
©
This business case is a copyright material protected under the Berne Convention, the

Copyright Act 1999 and other international and national enactments, in that behalf, on

intellectual property. It may not be reproduced by any means in full or in part, except

for short extracts in fair dealings, for research or private study, critical scholarly

review or discourse with an acknowledgement, without the written permission of

Mzumbe University, on behalf of the author.

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 ACKNOWLEDGEMENT

I would like to thank the almighty God for his guidance and support to overcome all

the challenges I faced during my entire studies and the completion of my case study

report. This work has been a result of the collective effort of a number of people, I

would like to take this opportunity to thank the following for their contribution in the

successful completion of this study.

I thank my supervisors Dr. Goyayi Maria and Dr. Darlene for their time, assistance

and commitment to my success as well as for their guidance during report writing. I

also acknowledge my MBA colleagues for being together and support each other for

two years.

Last, but not list in importance, I would like to thank my husband Mwita Sogorya and

my mother Magdalena Kimambo for being the huge support in so many ways and also

I offer my sincere to all who have contributed so much during the completion of this

study, may Almighty God bless them.

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 DEDICATION

This work is dedicated to my beloved son Jensen Mwita for being understanding son

when I needed time alone to focus on my studies, I also would like to dedicate this

work to my husband and my mother for their moral, spiritual and financial support

during my entire studies. Lastly I would like to give my dedication to my sister Dr.

Eva Wakuganda who have been a great support in different ways since I started my

masters until now, may God bless them all.

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 LIST OF ABBREVIATIONS AND ACRONYMN

ARDS Acute Respiratory Distress Syndrome

COVID-19 Coronavirus Disease 2019

CCDC Chinese Centre for Disease Control and Prevention

SARS-COV2 Severe Acute Respiratory Syndrome Coronavirus 2

TCC Tanzania Telecommunications Corporation

TCRA Tanzania Communication Regulatory Authority

TP&TC Tanzania Posts and Telecommunications Company

TPB Tanzania Postal Bank

TPC Tanzania Posts Corporation

TTCL Tanzania Telecommunications Corporation

WHO World Health Organization

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 ABSTRACT

The COVID-19 pandemic catalyzed unprecedented changes in consumer behavior,

accelerating the reliance on digital connectivity and broadband services. Despite this

undeniable shift, TTCL persisted in its reluctance to adapt to these evolving customer

needs. The resultant consequences were far-reaching, encompassing not only financial

setbacks but also significant reputational damage.

This case study underscores the paramount importance of adaptability and agility in

the face of unforeseen crises. The reluctance of TTCL's management to recognize and

address the changing circumstances exemplifies a failure to grasp the essence of

effective crisis management. Insights from this case serve as a stark reminder for

businesses worldwide that resilience lies in the capacity to swiftly respond to dynamic

market shifts, placing customers at the forefront of strategic decision-making.

By analyzing the TTCL scenario, this study contributes to the broader understanding

of the implications of managerial resistance to change during global crises. It provides

valuable lessons for businesses aiming to navigate uncertainties, emphasizing the

critical need for proactive strategies that align with evolving consumer preferences.

The aftermath of TTCL's stance serves as a cautionary tale, illustrating the dire

repercussions of not only overlooking market realities but also neglecting the role of

empathy and customer-centricity in organizational success.

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TABLE OF CONTENTS

CERTIFICATION..........................................................................................................i

DECLARATION...........................................................................................................ii

COPYRIGHT................................................................................................................iii

ACKNOWLEDGEMENT............................................................................................iv

DEDICATION...............................................................................................................v

LIST OF ABBREVIATIONS AND ACRONYMN.....................................................vi

ABSTRACT.................................................................................................................vii

TABLE OF CONTENTS............................................................................................viii

1.0 INTRODUCTION....................................................................................................1

2. BACKGROUND AND CONTEXTUAL INFORMATION ON COVID-19...........3

2.1 An overview of COVID-19..................................................................................3

2.2 Background of TANESCO...................................................................................4

2.2.1 Key functions of TTCL..................................................................................5

3. BUSINESS CASE PROBLEM..................................................................................6

i. Acceptance of Reality.........................................................................................7

ii. Infrastructure Investment....................................................................................7

iii. Customer-Centric Approach............................................................................7

5. CONCLUSION..........................................................................................................9

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ix
1.0 INTRODUCTION

As the COVID-19 pandemic began to spread globally, leading to lockdowns, remote

work, and increased online activities, the demand for reliable broadband services surged

significantly. Many organizations, including TTCL shifted to remote work arrangements,

and online education and entertainment became more essential than ever.

The global repercussions of the COVID-19 pandemic are reverberating across the globe

and are notably influencing the telecommunications industry. With a growing multitude

of nations enforcing mobility limitations, individuals are devoting more of their time to

home-based activities, encompassing work and recreational pursuits, which has resulted

in a considerable surge in data consumption. Consequently, the leadership of TTCL

underscores the imperative for substantial adaptations to align with the heightened

demands emanating from both customers and staff members.

As a consequence of the implementation of physical distancing measures, individuals

have increasingly turned to the Internet to conduct their everyday tasks, such as studying,

engaging in meetings, participating in religious activities, and maintaining social

connections. The utilization of the Internet has additionally facilitated the efficient

distribution of public guidance, the provision of telehealth services, and the exchange of

information between nations. Concurrently, the COVID-19 pandemic has amplified

reliance on the Internet and has inundated the public with a deluge of false news and

misleading information, effectively giving rise to an "infodemic" characterized by

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widespread misinformation. This phenomenon has contributed to a distorted perception

of COVID-19, fostering an environment of heightened anxiety and apprehension.

This case study will assess TTCL and its management's antagonistic stance towards

acknowledging and addressing the impact of the COVID-19 pandemic on the demand for

broadband services and its operations. This scenario highlights the consequences of

failing to adapt to changing circumstances and customer needs during a global crisis.

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2. BACKGROUND AND CONTEXTUAL INFORMATION ON COVID-19

2.1 An overview of COVID-19

COVID-19, short for "Coronavirus Disease 2019," is caused by a novel coronavirus

named SARS-CoV-2 (Severe Acute Respiratory Syndrome Coronavirus 2). The outbreak

of COVID-19 was first identified in the city of Wuhan, Hubei province, China, in

December 2019. It was initially linked to a seafood market where live animals were also

sold.

The virus quickly spread within Wuhan and then to other parts of China. It soon

transcended international borders and became a global pandemic. The World Health

Organization (WHO) declared COVID-19 a Public Health Emergency of International

Concern on January 30, 2020, and later declared it a pandemic on March 11, 2020.

COVID-19 had a profound impact on global health, economies, and societies.

Governments around the world implemented various measures to curb its spread,

including lockdowns, travel restrictions, social distancing, mask mandates, and

quarantine measures.

The pandemic led to widespread economic disruptions, including business closures, job

losses, and supply chain interruptions. Industries such as travel, tourism, hospitality, and

entertainment were particularly hard-hit.

COVID-19's long-term effects are still unfolding. It exposed vulnerabilities in global

healthcare systems and highlighted the need for better pandemic preparedness. Remote

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work and virtual communication became more common, potentially reshaping work

environments. The pandemic also spurred advancements in telemedicine, e-commerce,

and digital technologies.

COVID-19's impact extended beyond health and economics, affecting mental health,

education, and social interactions. The pandemic prompted reflections on personal

priorities, community resilience, and the interconnectedness of the modern world.

2.2 Background of TTCL

Tanzania Telecommunication Corporations, previously recognized as Tanzania

Telecommunications Company Limited (TTCL), was established through the enactment

of a law in Parliament, known as the 'The Tanzania Telecommunications Company

Incorporation Act of 1993.' This organization commenced its operations after the division

of the former state-owned entity named Tanzania Posts and Telecommunications

Company (TP&TC), and it officially commenced its activities on January 1, 1994. The

reason for this division was the government's initiative to open up the

telecommunications sector in the nation. As a result of this separation, four state-owned

entities emerged: Tanzania Posts Corporation (TPC), Tanzania Telecommunications

Company Limited (TTCL), Tanzania Postal Bank (TPB), and the Tanzania

Communication Commission (TCC), which is now referred to as the Tanzania

Communication Regulatory Authority (TCRA).

Due to the government's ongoing policy of economic liberalization, TTCL underwent

privatization on February 23, 2001. A consortium consisting of MSI from the

4
Netherlands and Detecon from Germany acquired a 35% stake in the company from the

Tanzanian government. However, as of June 23, 2016, the Tanzanian government

regained full ownership of TTCL, possessing 100% of the company's shares.

Consequently, from February 1, 2018 onward, TTCL has been entirely owned by the

Tanzanian government.

The Tanzania Telecommunication Corporation (Act No. 12 of 2017) was endorsed by the

President of the United Republic of Tanzania on November 28, 2017, and officially

published by the Minister for Works, Transport, and Communication, with its

implementation scheduled for February 1, 2018. Under this Act, TTCL assumed the roles

and obligations previously held by the former Tanzania Telecommunication Company

Ltd. (TTCL), which concluded its operations on January 31, 2018.

2.2.1 Key functions of TTCL

The primary functions of the Corporation encompass:

a) Strengthening the safety, security, economic viability, and commercial

sustainability of national telecommunications services and infrastructure through

the following means:

i. Advocating for efficient management and functioning of

telecommunications services.

ii. Initiating, up keeping, promoting, and managing telecommunications

services.

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 iii. Ensuring the safety and security of specified or designated

telecommunications infrastructure, as outlined in section 20 of the

Tanzania Telecommunication Corporation Act.

b) Strategically planning, constructing, operating, and maintaining the crucial

telecommunications infrastructure mandated by the Government.

c) Conducting telecommunications services in adherence to the regulations and

established procedures governing such services.

d) Managing and sustaining various categories of telecommunications networks,

encompassing ICT systems and services both within and beyond the boundaries

of the United Republic of Tanzania.

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3. BUSINESS CASE PROBLEM

On the final day of December in 2019, a total of 27 instances of pneumonia with an

unclear origin were detected in the city of Wuhan, situated in Hubei Province, China. The

responsible organism was isolated from throat swab specimens examined by the Chinese

Centre for Disease Control and Prevention (CCDC) on January 7, 2020. It was later

designated as Severe Acute Respiratory Syndrome Coronavirus 2 (SARS-CoV-2). The

global health authority known as the World Health Organization (WHO) labeled the

illness as COVID-19.

TTCL, the government-controlled telecommunication company responsible for providing

broadband services across Tanzania. Before the COVID-19 pandemic, the company

enjoyed a dominant position in the market, offering reliable and cost-effective broadband

connectivity to both residential and business customers. Following that, from February,

2020, as the COVID-19 pandemic began to spread globally, leading to lockdowns,

remote work, and increased online activities, the demand for reliable broadband services

surged significantly. Many organizations shifted to remote work arrangements, and

online education and entertainment became more essential than ever. While the world

around them was changing, TTCL’s management remained resolute in their beliefs and it

caught the attention of Engineer Cecil Francis, Director of Technical and Operations.

Fore mostly, the key questions that COVID-19 positioned Engineer Cecil Francis,

Director of Technical and Operations is to ask and assess himself was what could be the

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measures that could be implemented to ensure the dependability of their networks, at

what juncture should we allocate resources for our network and 5G, how can they

maintain a satisfactory customer experience, especially during periods of intense network

demands, in what ways should they reevaluate their expense framework to

counterbalance potential medium-term revenue reduction, how can we effectively harness

automation throughout all aspects of our operations (customer relations, workforce,

network, resilience), and what transformations are occurring in data privacy frameworks,

and how might these alterations impact their corporate policies?

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4. LITERATURE REVIEW
This section systematically relates itself with the review of the information that is

properly related and relevant to the case. To attain mire insight on the case, the key terms

has been defined, relevant theories expounded and empirical studies identified further in

this section.

4.1 Definition of key terms

4.1.1 COVID-19
China Centre for Diseases Control and Preventions (CDCC) (2020) refers COVID-19 to

the disease caused by the virus SARS-CoV-2, a novel coronavirus that emerged in late

2019. The disease primarily spreads through respiratory droplets and can result in a wide

range of symptoms, including fever, cough, and fatigue. In severe cases, it can lead to

pneumonia, acute respiratory distress syndrome (ARDS), organ failure, and death.

4.1.2 Telecommunication Industry

The telecommunications industry refers to the sector that involves the development,

implementation, and management of technologies and services for transmitting

information, including voice, data, and video, over long distances. It encompasses a wide

range of activities, from building and maintaining physical infrastructure like

communication networks to providing various services like telephone, internet, and

broadcasting.

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4.2 Theories relevant to the case scenario
Agility theory and economics theory provide frameworks for understanding the

multifaceted impacts of COVID-19 on the telecommunications industry.

4.2.1 Agility Theory

Agility theory emphasizes an organization's ability to quickly adapt and respond to

changing circumstances. The pandemic underscored the importance of agility in the

telecommunications industry, as companies had to swiftly adjust to increased network

demand, new services, and changing customer behaviors.

4.2.2 Economic Theory (Demand and Supply)

Basic economic principles of supply and demand were at play during the pandemic. The

surge in demand for remote communication services, including video conferencing,

streaming, and online gaming, led to shifts in pricing strategies, resource allocation, and

investment priorities within the telecommunications industry.

4.3 Empirical Literatures

The pandemic and the strategies implemented to curb the virus's transmission have

fundamentally altered both social and business activities. Understandably, this has led to

abrupt and unforeseen surges and alterations in Internet usage patterns, significantly

transforming the way the Internet is used (Feldmann et al., 2020, 2021; Koeze & Popper,

2020; Labovitz, 2020; OECD, 2020). One of the most noteworthy shifts pertains to the

sites where Internet access is obtained, as many individuals had to rely on their

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residential broadband connections to sustain their social and economic engagements,

such as remote work, education, and entertainment consumption from home.

Furthermore, a considerable number of people changed their locations, moving away

from urban centers and temporarily relocating to more rural or secluded areas.

In the setup of provisioning networks, capacity is increased in discrete increments ahead

of anticipated growth in demand. Decisions to upgrade are typically based on the peaks

of traffic and the highest levels of utilization, as these instances reflect potential network

congestion. In response to the unforeseen surges in traffic due to COVID-19 and to

ensure a satisfactory customer experience, Internet Service Providers (ISPs) had to

accelerate their annual capital expenditures and provisioning activities by several months.

This adjustment was necessary to accommodate the surge in traffic peaks (Liu et al.,

2021).

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5. METHODOLOGY

5.1 Sample and Sampling Procedure

Kamangar and Islami (2013) defines sampling as the process that involves the selection

of a representative sample of individuals from the identified population. Dai, Liu & Hu

(2014) added that sampling is an essential tool in research because the intended

population usually consists of large number of individuals to be included in the course of

the study. in that regard, selection of the protagonist is crucial as it helps to determine the

quality of the business case. Under this business case, the protagonist is Engineer Cecil

Francis, Director of Technical and Operations. Purposive sampling is a sampling

technique that qualitative studies use to recruit participants who can provide in-depth and

detailed information about the phenomenon under investigation (Dai, Liu & Hu, 2014).

Eng. Cecil was purposively selected because he is fully responsible to drive all technical

and operations of the corporation.

5.2 Data Collection Methods

Patton (2017) explains data collection as the process that gathers and measure

information about variables of the study in a way that enhance and provide answers to the

research questions and provide evaluation of outcomes. This study used secondary data.

Data were collected by using documentary review by going through TTCL annual

performance reports, audited financial reports and sector reports from the National

Bureau of Statistics (NBS).

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5.3 Data Management and Analysis

LeCompte and Schensul (2019) emulates data analysis as the process of reducing large

amount of collected data to make sense of them. All data that gathered through

observation and documentary review were analyzed by content analysis. Content analysis

is a research methodology that involves identifying specific themes, concepts, and

specific patterns of words in the data.  It basically looks at the text, so the analysis

captures the central aspect of it

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6. PROPOSED BUSINESS SOLUTION

As the negative consequences of COVID-19 continued to mount, Engineer Cecil Francis,

Director of Technical and Operations and other stakeholders including government

officials, industry experts, and even some members within the company's own

management began to exert pressure on TTCL leadership to change its approach.

Eventually, the mounting pressure led to a change in the management's stance:

i. Acceptance of Reality

The new management acknowledged the impact of the COVID-19 pandemic on

broadband demand and service quality, publicly recognizing the need for improvements.

ii. Infrastructure Investment

TTCL embarked on an infrastructure upgrade project to expand its network capacity and

improve service quality. This included both short-term enhancements and long-term

plans to accommodate changing demands.

iii. Customer-Centric Approach

The corporation adopted a more customer-centric approach, actively engaging with

customers, addressing their concerns, and working towards tailored solutions to meet

their evolving needs. Management of the corporation shall be defined by what they do

along the three dimensions to managing a crisis: respond, recover, and thrive. Key next

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step should include testing network reliability, ensuring call centers are equipped to

handle increases in volume, considering the impact of government stimulus incentives on

the corporation, and assessing opportunities for more automation, such as low/no-touch

options for customer-facing processes as well and internal tasks.

iv. Operational Automation

Embracing automation across various operational aspects emerged as a transformative

move. The corporation's commitment to integrating automation not only streamlined its

operations but also enhanced workforce efficiency, customer interactions, and network

resilience. This strategic approach positioned the corporation as a forward-thinking

player in the telecommunications industry.

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5. CONCLUSION
 
In conclusion, the management of TTCL during the COVID-19 pandemic presented a

complex set of challenges and opportunities. The corporation’s response to the

unprecedented situation highlighted the significance of adaptability, strategic planning,

and customer-centricity in the face of disruptive events.

The corporation's initial actions focused on ensuring the continuity and reliability of its

networks, recognizing the increased dependence on digital communication channels

during lockdowns and remote working scenarios. By swiftly guaranteeing network

stability and addressing potential congestion issues, the corporation demonstrated its

commitment to meeting customer needs even in times of crisis. This reflected in their

revenue collected from 2021 to 2022 as exhibited below:

Figure 2: TTCL Revenue from 2017 to 2021

TTCL Revenue 2017-2021

2021/22 173,112

2020/21 159,428

2019/20 146,391

2018/19 131,920

2017/18 116,430

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000

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Investment decisions related to network expansion and the rollout of 5G services proved

to be pivotal. The corporation's agility in recognizing the long-term importance of these

investments, despite short-term uncertainties, positioned it to capitalize on the growing

demand for enhanced connectivity and digital services.

Maintaining a positive customer experience emerged as a critical concern. The

corporation's efforts to manage network pressures while minimizing service disruptions

underscored its dedication to customer satisfaction. Implementing transparent

communication, offering support, and optimizing network performance were key

strategies that contributed to sustaining customer loyalty and trust.

The corporation's adeptness in reassessing its cost structure was evident in its ability to

navigate revenue fluctuations. By proactively adjusting expenditures and reallocating

resources, the corporation aimed to mitigate the impact of potential revenue declines,

ensuring its financial stability in the medium term.

The evolving landscape of data privacy frameworks was recognized as an area

necessitating attention. By staying attuned to changing regulations and aligning

corporation policies accordingly, the corporation aimed to safeguard customer data and

maintain regulatory compliance, thereby fostering trust and accountability.

In essence, the management of the state-owned telecommunications corporation during

the COVID-19 pandemic serves as a case study in crisis management and strategic

decision-making. The corporation's ability to balance short-term challenges with long-

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term objectives, its customer-centric approach, and its embrace of technological

advancements collectively contributed to its resilience and competitiveness. As the

business world continues to navigate uncertainties, the lessons derived from this case

remain pertinent for organizations seeking to thrive in dynamic and unpredictable

environments.

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REFERENCES

Kamangar, F., & Islami, F. (2013). Sample size calculation for epidemiologic studies

principles and methods. Journal of Iranian Medicines, 5, 295-300.

LeCompte, M.D., & Schensul, J.J. (2019). Analysing and interpreting ethnographic

data. Walnut Creek, CA: AltaMira Press

Macnee, C. L., & McCabe, S. (2018). Understanding nursing research-reading and

using research in evidence-based practice (2nd ed.). Philadelphia: Lippincott

Williams and Wilkins.

Patton, M.Q. (2017). How to use qualitative methods in evaluation. London: Sage.

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