Tanzania’s government has stopped India-based data and Value Added Services [VAS] company OnMobile from operating in the country, amid accusations that the firm does not have a trading licence.

OnMobile, which is listed on India’s Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), offers services such as mCommerce solutions, missed call alerts and mobile advertising. The company also claims to reach 1 billion mobile users in 55 countries.

However, OnMobile has found it tough to operate in Tanzania, as the country’s deputy minister for communications, science and technology, January Yusuf Makamba, has reportedly told the national assembly that OnMobile has struck up partnership deals with Vodacom and Airtel before even receiving a required licence.

As a result, the Tanzania Communications Regulatory Authority (TCRA) has shut down its business in that country until it receives a legal trading licence.

Tanzania’s deputy minister for communications, science and technology, January Yusuf Makamba, has now instructed OnMobile – through the Tanzania Communications Regulatory Authority (TCRA) – to wait until it receives a legal trading licence.

“We have curtailed their business,” said Makamba.

“It is illegal in this country to engage in such big-time trading without being registered,” the minister added .

Tanzania has an active telecommunications sector, as the African country has two fixed-line operators (TTCL and Zantel) and eight operational mobile networks, with four additional players licensed under a new converged regulatory regime, according to BuddeComm research.

BuddeComm research further forecasts that the mobile penetration rate in the country could reach 62% by the end of 2012, while fixed and internet penetration rates could respectively reach 0.4% and 13% each.