Incomplete liberalization is keeping prices high. While many countries in the region have implemented reforms to promote greater competition and private sector participation in various ICT sub-sectors, incomplete liberalization in most of the region has allowed incumbent telecommunications operators to use their monopoly power to keep prices high in areas key to economic development such as international bandwidth and access to Internet. Over the past five years, the policy trend in the ICT sector has moved in one direction – that of more competition – and this i s having a significant positive impact on customers. However, a key issue which is emerging, particularly in relation to the development of backbone networks and broadband services, i s the details of market liberalization and regulation.
Through in-depth consultations, the Government of Tanzania finalized in June 2005 its second poverty reduction strategy called the “National Strategy for Growth and Reduction of Poverty”, or MKUKUTA, covering 2005-2010. The strategy identifies three clusters of broad outcomes: growth of the economy and reduction of income poverty; improvement of quality of life and social well-being; and governance and accountability.