On 3/6/2019,The Uganda Communications Commission (UCC) switched on 22 3G base stations under the third phase of its Rural Communications Development Fund (RCDF) project, which mainly was focusing on improving connectivity in unserved and underserved areas of the country. The Fund contributed UGX3.04 billion (USD800,000) to deploy new base stations or upgrade existing 2G sites to 3G capability. The deployment work was carried out by MTN Uganda.
On 7/6/2019,The National Information Technology Authority of Uganda (NITA-U) said it had plans to have installed 500 free Wi-Fi access points across the country by the end of this year. According to a report from The Monitor, the state-run organisation then had 284 active Wi-Fi sites in Kampala, Entebbe and Wakiso. Another 216 Wi-Fi kiosks were to be installed over the next six months, with priority being given to rural areas where fibre backbone networks had recently been installed.
The NITA-U began its USD4.7 million Wi-Fi deployment in 2017, offering free connectivity under the MYUG brand at off-peak times, with peak download speeds of 2Mbps. The group said that past problems with network congestion were to be resolved and users were to have improved service levels.
On 28/6/2020,SEACOM was awarded a grant of an undisclosed amount from the US Trade and Development Agency (USTDA) to conduct a feasibility study on the market potential for fibre services in Tanzania, Rwanda, Uganda and Kenya. The study was to allow SEACOM to ascertain the specific areas of expansion in the chosen countries, including required network equipment and fibre-optic cabling. In addition to the study, SEACOM had revealed plans to add eight new PoPs across the African continent; the company had expanded its reach in Mombasa (Kenya) with the new Icolo data centre, with similar PoPs planned for construction in Nairobi (Kenya) and Kampala (Uganda).
02/07/2019,The government of Uganda was criticised for proposed changes to regulations which could increase state control over internet access. A report from the Daily Monitor, which cited a communication from privately-run Uganda Internet eXchange Point (UIXP), says that draft regulations from the Uganda Communications Commission (UCC) was to require all local ISPs to channel traffic through a Designated National Internet Exchange Point (DNIXP), which will be controlled by the government. Furthermore, the report said that plans to create a single national backbone network run by the state will also increase government influence, effectively nationalising communications infrastructure.
With internet blackouts having accompanied presidential and parliamentary elections in 2016, some critics said the proposals was politically motivated ahead of the next planned election in 2021, while they will also create a virtual government monopoly which has been labelled as ‘counter-productive’.
The UCC defended its stance. Fred Otunu, director of corporate affairs at the regulator, said: ‘It is not about nationalising but aims to avoid duplication and government playing a central role in providing infrastructure. The issue of the national broadband policy should be understood in the same context like we talk about other infrastructure, whether roads, airports and so forth. ICT had been thought that it should be left to the private sector, but the world over is saying this is a sector that the government should have a central interest in. If government is providing road infrastructure, why shouldn’t government provide ICT infrastructure because this is a cyber-super highway.’
18/7/2019,The government of Uganda said the tax on mobile social media services which was introduced in July 2018 had failedto generate the expected income. A report from Agence Ecofin cites Doris Akol, the Commissioner General of the Uganda Revenue Authority (URA), as saying that the tax brought in UGX49.5 billion (USD13.5 million) between its implementation and the end of 2018, which was just 17.4% of the UGX284 billion which had been predicted. Reasons for the poor performance included mobile customers opting to install VPN software or waiting until they are in range of a Wi-Fi connection before accessing social media apps.
While the social media tax had produced disappointing results for the government, mobile money services continued to do well, bringing in UGX157.2 billion in taxes in 2018, well ahead of the UGX115 billion which had been expected.
23/07/2019,The Uganda Communications Commission (UCC) ordered local cellco Airtel to provide proof of its 4G network coverage and download speeds. According to a report from Techjaja, the regulator said it had received consumer complaints that Airtel’s 4G network – which is advertised as ‘nationwide’ – is not present across the country, while data transmission rates were lower than expected. The UCC had carried out preliminary testing in the cities of Kampala, Mukono, Entebbe and Jinja and found that LTE-based services were available in over 90% of areas sampled. Its main concern, however, was with the data rates, which it found to be ‘much lower than what is internationally expected for a countrywide 4G network service’.
Airtel therefore was asked by the UCC to: show technical evidence to prove that it provides the claimed nationwide 4G service across Uganda ‘in terms of performance and geographical coverage’; and ‘show cause why regulatory sanction(s) should not be instituted … for misrepresenting to its customers and the general public about its network quality and speeds’.
Indian-owned Airtel Uganda announced the nationwide availability of 4G services in February 2019, claiming to have 1,632 LTE-enabled sites connected by over 3,900km of fibre, covering 95.9% of the population.
01/10/2019,The government of Mauritius played down rumours that local state-backed telco Mauritius Telecom (MT) is still interested in acquiring a majority stake in Uganda Telecom Ltd (UTL). The Ugandan government was looking to sell off around two-thirds of UTL in an attempt to revitalise the struggling operator, but a deal agreed a year ago with Nigeria-based investor Teleology fell through in January due to its failure to hand over the deposit payment. At the time of the Teleology deal, MT had been named as another potential buyer for UTL.
According to a report from the Kampala Post, however, there were no plans for MT to take a stake in its Ugandan counterpart. Officials in Mauritius also denied that Uganda’s Minister for Privatisation and Investments, Evelyn Anite, travelled to Mauritius in August to discuss a possible deal between MT and UTL.
11/10/2019,The National Information Technology Authority of Uganda (NITA-U) defended itself against accusations that it was wasting public funds with its rollout of a national backbone network. press reports had accused officials at the state-backed body of corruption and of mismanaging the network deployment.
A statement from NITA-U responded by saying: ‘The originators of the false news are obviously determined on downplaying Uganda’s progress in achieving widespread connectivity that has significantly lowered internet bandwidth costs to Ugandan individuals and organisations over the last ten years.’ The body said that at the start of the project in 2008 the cost-per-Mbps was USD1,200 but then dropped to USD70-per-Mbps. According to a report from PML Daily, the agency added that 3,000km of fibre-optic cable had already been deployed and a fourth phase of the rollout was underway.
1/11/2019,The Ugandan government said the country’s telecoms operators must list at least 20% of their shares on the local bourse within two years in a move to encourage local ownership. A report from Reuters cites Ibrahim Bbosa, spokesman for the regulator Uganda Communications Commission (UCC), as saying that the share listing will be one of the terms contained within new licences: ‘In 60 days we want to have issued new licences and then two years from then all the players should have listed at least 20% of their shares on the Uganda Stock Exchange (USE).’ According to statistics foreign-owned operators MTN Uganda and Airtel Uganda control almost 90% of the local mobile market between them.
Another condition of the new licences was to be for operators to share fibre backbone infrastructure to avoid the expense of each firm rolling out overlapping networks.
13/11/2919,MTN Group, a leading emerging market operator with more than 240 million customers in 21 countries in Africa and the Middle East, announced the successful deployment of more than 200 commercial rural sites across its footprint, using OpenRAN technology which enables operators to achieve cost-effective deployments allowing for greater connectivity to previously unconnected areas. Working with Vanu, a provider of equipment, tools and services that allow mobile network operators to profit by serving off-grid communities, MTN ultimately aimed to supply both equipment and services for as many as 6,000 mobile network sites in rural areas across its 21 operations, bringing 2G, 3G and 4G connectivity to areas that were previously unconnected. In order to realise this goal, MTN will rely on an ecosystem of partners who will bring their expertise to build and maintain the sites, utilising a full turnkey approach. The vendor, meanwhile, said that its ‘unique’ off-grid network systems will enable MTN Group to provide efficient and profitable connectivity solutions to previously unconnected communities.
MTN’s operations in Uganda and Guinea are already benefiting from this technology, as the regional carrier has also partnered with the likes of Vanu, Parallel Wireless and NuRAN Wireless to deliver OpenRAN technology in those markets.
11/12/2019,The Uganda Civil Aviation Authority (UCAA) signed an agreement allowing Loon, a subsidiary of the Alphabet group of companies which also includes Google, to operate unmanned, high-altitude balloons which act as floating mobile masts to extend network coverage to unserved areas.
The Daily Monitor cites State Minister for Works and Transport, Aggrey Bagiire, as saying: ‘The signed Letter of Agreement will provide for safe over flight of the balloons in Uganda’s airspace. It also caters for orderly descent and landing in case of an eventuality.’ He added that Loon already had similar flight arrangements in Botswana, Nigeria, South Africa, Mauritius, Seychelles, Democratic Republic of Congo, Republic of Congo, Mozambique and Kenya.
3/01/2020,American Tower Corporation (ATC) closed its previously announced USD1.85 billion acquisition of Eaton Towers Holdings, adding 5,700 towers to its portfolio in Africa. ATC says it now controls around 177,000 wireless towers worldwide.
ATC had also announced that it was acquiring minority stakes in tower joint ventures (JVs) in Uganda and Ghana which are currently held by MTN Group. ATC will pay MTN USD523 million for its 49% interests in Uganda Tower Interco and Ghana Tower Interco. The transaction was expected to close in the first quarter of 2020, subject to regulatory approval. In a statement MTN explained the decision to offload its stakes in the two JVs, saying: ‘We remain focused on continuing to execute on the important strategic priorities of reducing debt, simplifying the portfolio and reducing risk.
20/1/2020,Ugandan cellco MTN teamed up with equipment vendor ZTE of China to demonstrate 5G mobile technology in Kampala. South African-owned MTNsays it wanted to be the first to bring a Standalone 5G network to East Africa. MTN Uganda’s CEO, Wim Vanhelleputte, commented: ‘5G will make our life better, drive incremental capacity and open up new business [opportunities]. MTN as a company is constantly making efforts to break barriers by democratising voice and data connectivity in order to improve subscriber experience.’ A report from PML Daily cites Godfrey Mutabazi, Executive Director of the Uganda Communication Commission (UCC), as saying that, as a regulator of the communications sector, it is working to ensure that there is an appropriate infrastructure that supports 5G. MTNhopes to launch a live 5G network in Uganda by the end of this 2020.
UK-based MVNO giant Lycamobile Group notched up a new African market, following the launch of Lycamobile Uganda. This development expanded Lycamobile’s global footprint to 24 counties. Allirajah Subaskaran, Lyca Group founder and chairman, commented: ‘As the world’s largest MVNO with a sustained focus on Africa, it is a natural move for Lycamobile to venture into Uganda. We are currently operational in South Africa and considered Uganda in the East African region because of the market potential and ease of doing business.’ While the press release asserts that Lycamobile ‘has established countrywide infrastructure’, local news site PML Daily notes that the new MVNO has signed a wholesale agreement with fixed-wireless 4G player Tangerine, which it says is ‘already in most towns in Mukono, Kampala and Wakiso’. Lycamobile will use the ‘072’ prefix.
31/01/2020,MTN Uganda was warning that a government move to enforce a sale of at least 20% of local telco shares to Ugandans could result in no increase in domestic share ownership. The requirement to list shares on the local stock exchange has been included in new licence terms which come into force today (31 January).
Reuters cited MTN Uganda CEO Wim Vanhelleputte as saying that instead of the listing requirement, the government should allow foreign firms to sell stakes to vetted local investors via private placements. This would guarantee local ownership, whereas an entry to the stock market could result in foreign investors buying shares, even if participation in the initial public offer (IPO) is restricted to Ugandans. MTN has previously been in negotiations with pubic sector pension fund NSSF over a possible stake sale.
27/2/2020, The government of Uganda was looking at borrowing USD150 million from Exim Bank of China to help fund ICT projects. ICTMinister Peter Ogwang is cited by The Daily Monitor as saying that the money will be used to ‘develop the national backbone infrastructure to begin implementing ICT investments in schools, referral hospitals, districts and lower local government’. Funding will also be used to provide computers and connectivity for secondary schools.
13/3/2020,MTN Uganda agreed to pay USD100 million to renew its licence for a further ten years. The decision followed more than a year of negotiations, during which the South African-owned cellco had been forced to operate under a series of temporary permits. It was reported last year that the government was pushing for a USD118 million price tag on the ten-year licence, or USD150 million for a 15-year concession. According to statistics on market leader MTN controls around 43% of all mobile subscribers in Uganda.
27/04/2020,Africell Holding, which operates mobile networks in Sierra Leone, The Gambia, Democratic Republic of the Congo and Uganda, announced the completion of a strategic group reorganisation, involving the opening of a new London, UK head office and the legal incorporation of Africell’s US-owned parent company in Jersey (Channel Islands). Ziad Dalloul, founder and CEOof Africell, said: ‘The Group reorganisation is a significant moment for Africell. The changes enacted certify us as a company with bold growth plans, a thoroughly international perspective, and the highest standards of governance and compliance. Africell’s entrepreneurial culture drawn from Lebanon, where Africell was founded, still drives the business on, but the new London base gives a new platform from which can deliver the next stage of firm’s development.’
Ian Paterson, Chief Investment Officer of Africell, added: ‘Being headquartered in a dynamic hub like London and incorporated in a major international financial centre such as Jersey gives Africell superior access to investors and partners. It also improves the visibility – and achievability – of exciting new business opportunities, such as the fourth network licence in Angola, for which Africell was recently invited to submit a proposal and which we are keen to pursue in partnership with the government of Angola.’
In 2019 Africell gained a significant investment from the US International Development Finance Corporation (USIDFC, previously OPIC). The mailing address for the Africell group remains in Beirut according to its corporate website at 18 March. (Update: the mailing address subsequently changed to London).
2/06/2020,MTN Uganda was ordered to pay disputed taxes amounting to UGX44.2 billion (USD11.6 million). A report from The Independent says that the country’s Tax Appeals Tribunal (TAT) found in favour of the Uganda Revenue Authority (URA) in two separate cases. In the first case the URA was demanding UGX24.2 billion in unpaid duties which related to the taxation of airtime, and in the other the URA was awarded UGX20 billion which was owed by MTN as part of a dispute over how telecom and mobile money services are taxed. MTN was arguing that tax should be paid on the price of airtime it sells at the wholesale level, while the URA maintained that taxes should be paid on the retail value.you can get More on this tax on https://acidicsecurity.blogspot.com/2019/02/mtn-uganda-on-is-on-fire-because-of.html?m=1
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