Patrick Masambu Executive Director of UCC INTERVIEW

Revolutionary boom
Uganda Communications Commission

As the eyes of the Commonwealth turn to Uganda this November, there will be a natural emphasis on communication services. ICT services are not only necessary for the smooth running of an event like CHOGM; they are also a prime indicator and an enabler of national development.

Luckily the current boom in Uganda’s communications sector is nothing short of revolutionary.

The latest investment survey from the Uganda Communications Commission (UCC) reveals that the sector attracted over $75 million last year, a 47 per cent increase over the previous year. The number of phone subscribers grew by 1.5 million in the last fiscal year. As of June 2007, there were 3.7 million phone subscribers in Uganda, 3.6 million of whom owned mobile phones. Ten years ago that number stood at 3,000.

According to UCC Executive Director Patrick Masambu (INTERVIEW), the increases are the result of a surge in competition on the market. Last year a duopoly that had given exclusive rights to MTN Uganda and Uganda Telecom Ltd ended and the UCC established a new licensing regime.

In addition to the three existing telecommunication operators, UCC has licensed two additional service providers who will be operational by November. The Commission has so far licensed 23 companies to offer telecommunication services. Four of these—Warid Telecom Uganda, Hits-Uganda Ltd, Infocom and Africa Online—hold both public infrastructure provider and public service provider licenses.

Vigorous competition and major capital investments in the sector promise to push growth even further in the coming year. This competition is also bringing to consumers lower tariffs, innovative services and better quality of services.

Internet usage, which to date had been relatively low, also yielded promising figures. The number of subscribers rose last year by 30 per cent. Buoyed by an increase in private demand, international bandwith increased by 50 per cent.

One of the major challenges in capitalising on the socio-economic potential of the ICT revolution, however, is limited infrastructure in rural areas. The UCC has taken the novel approach of subsidising small service providers as well as committing a very substantial budget, in millions of US dollars, to ICT development in areas identified as unprofitable by the telecommunication companies.

By enabling the private sector, ensuring a competitive market and investing in rural connectivity, UCC is making sure that Uganda’s communications boom translates into economic growth for all.