The Indian company OnMobile from Bangalore with
collaboration with two major mobile services providers Vodacom Tanzania and
Airtel they are said to earn a total of Tanzanian Shillings 80 million daily.
40 percent of the money earned is taken to the Indian based company. The
research done by the local magazine The Citizen the local musicians especially
the young generation’s musicians are not earning income from this business or
if they are earning is too small amount if not nothing at all.
Each caller back tune costs Tanzanian shillings 300, the
Citizen source who was not mentioned, said that from the business, Vodacom and
Airtel get between Tsh 20 million and
Tsh 40 million daily respectively. Annually the two companies are earning Tsh
22 billion but the mobile firms could not confirm this amount.
The two major mobile services providers they accepted doing
business with the Indian company
but have refused to declare openly their terms of agreement. The information
declared the companies are taking between 75 to 80 percent of the total sales,
while OnMobile takes the rest.
But the line of distribution does not end there, as there is
another locally registered and licesnsed company, Push Mobile, which, after
getting the money, retains 40 percent while the artiste gets seven percent as
the rest goes to OnMobile.
“We are not in a position to scrutinize revenue sharing
mechanisms between third parties we believe that there are good legal
frameworks in Tanzania that can arbitrate any disputes and ensure appropriate
gaps are closed,” Ms Singano, Airtel’s regulatory and cooperate communications
director said. 
Asked about the 8 billion they reportedly generate from the
business annually, Vodacom’s chief for marketing and corporate affairs, Ms
Mwamvita Makamba, could neither admit nor deny it. She, however, maintained
that Vodacom was not privy to the arrangements between their contents providers
(not necessarily OnMobile) and the musicians.
Miss Makamba Vodacom’s chief for marketing and corporate
affairs said “Much as we enjoying seeing every stakeholder getting fair returns
of their works, it is not our business to get involved with artistes provider
commercial relationships”
People yet are not aware of how much they can make in the
mobile industry in Tanzania, their works have been utilized for free from.
Their songs, pictures and products are used for free with the mobile service
providers companies. The income generated from the business could help them