National Information and Communications Technology Policy CHAPTER TWO POLICY RATIONALE The emergence of the information age emphasizes the important role that ICT can play in facilitating a nation’s socio-economic development. The effective use of ICT is becoming the most critical factor for rapid economic growth and wealth creation, and for improving socio-economic well-being. ICT’s are, therefore, increasingly becoming the key drivers for socio-economic development worldwide. It is now acknowledged that a nation’s capability to accelerate its socio-economic development process and gain global competitiveness depend very much on the extent to which it can develop, use, and exploit ICT in one form or another. For Tanzania to move away from its industrially weak and subsistence agriculture-based economy towards a knowledge-based economy, there is a need to leverage ICTs as a catalyst for wholesale development of all economic endeavours. To aid this process the Government, in 2003, developed the National ICT Policy with a vision for “Tanzania to become a hub of ICT infrastructure and ICT solution that enhance sustainable socioeconomic development and accelerated poverty reduction both nationally and globally”. The National ICT Policy 2003 was based on ten main focus areas namely: Strategic ICT Leadership; ICT Infrastructure; ICT Industry; Human Capital; Legal and Regulatory Framework; Productive Sectors; Service Sectors; Public Service; Local Content; and Universal Access. This policy made it possible for Tanzania to achieve milestones in the ICT industry and in facilitating the deployment and exploitation of ICTs within key sectors of the Tanzanian economy. To a great extent, the policy vision of Tanzania being a regional ICT hub has been attained as Tanzania now serves neighbouring countries by extending the benefits of high capacity submarine cable through the NICTBB. Since 2003 a number of policy objectives have been attained and the industry has witnessed major technological changes. These include construction of infrastructures, implementation of universal service obligations and successful migration from analogue to digital terrestrial television broadcasting which has further improved quality and also helped to rescue spectrum resources (digital dividend) suitable for mobile broadband particularly in the last mile connectivity. Other developments include advancement of communication technology from GSM to LTE and transmission systems from microwave to optical fibre technology. These technological advancements and successes have brought challenges as well as opportunities in the ICT industry including 14