According to International Trade Administration, in February 2005, Tanzania initiated liberalization of its telecommunications sector. The government has actively embraced competition in the telecom market despite it having retaken control of the incumbent telecom TTCL in June 2016.

Foreign participation has also been encouraged to promote economic growth and social development. Policy reforms have led to the telecom sector becoming among the most liberal in Africa. However, high import tariffs on telecom equipment and taxes on telephone facilities by various authorities are still placing a burden on investors and operators.

With about 40% Internet penetration there is still a portion of the population that remain off-line and excluded from the benefits of the internet. Liberalisation has opened opportunities to establish new telecommunications operations, particularly for mobile phone operators, public data communication operators, closed user group data communication providers, radio paging service providers and Internet service businesses.