2014 Uganda - Telecoms, Mobile, Broadband and Forecasts

Publication Overview

This annual report provides a comprehensive overview of trends and developments in Uganda’s telecommunications market. Subjects covered include:

  • One of the most competitive mobile markets in the region;
  • Key statistics;
  • Market and industry overviews;
  • Government policies affecting the telecoms industry;
  • Market liberalisation and regulatory issues;
  • Telecoms operators – privatisation, acquisitions, new licences;
  • Major players (fixed, mobile and broadband);
  • Infrastructure development, including international and domestic fibre;
  • Mobile voice and data markets, including 3G, 4G;
  • Average Revenue per User (ARPU);
  • Infrastructure sharing, tower outsourcing;
  • Internet and broadband development and growth;
  • Broadband pricing – ADSL, WiMAX, WiFi, EV-DO, 3G, 4G (LTE), Metro Ethernet;
  • Convergence (voice/data, fixed/wireless/mobile);
  • Digital media;
  • Mobile money transfer and m-banking services.

Researcher:- Peter Lange
Current publication date:- July 2014 (13th Edition)

Executive Summary

Seventh network launches amidst consolidation in crowded mobile sector

The introduction of mobile telephony has revolutionised Uganda’s telecommunications industry, but with seven networks the market is overcrowded, which has led to a price war and consolidation among the operators. However, not long after the No. 2 in the market (Bharti Airtel) took over the No.4 (Warid Telecom), a new operator (Smart Telecom) launched in March 2014. Two months later, the new No. 4 (Orange) decided to exit the market and sold to Lebanon-based Africell.

The price war has accelerated subscriber growth but also reduced the average revenue per user (ARPU) and quality of service (QoS). The network operators started raising their tariffs again and are trying to find ways of generating additional revenue streams. 3G and 4G mobile broadband services as well as mobile money transfer and m-banking services are at the forefront of this development in a country where less than 20% of the population currently has internet access or holds a traditional bank account.

Fixed-line and DSL penetration is low but has seen a renaissance on the back of wireless local loop (WLL) rollouts, prepaid services and an increasing demand for broadband access. Fixed GSM and WiMAX in combination with VoIP now make up more than half of the fixed telephony market.

Being landlocked, the country depended entirely on satellites for its international connectivity until 2009 when several international submarine fibre optic cables landed on the African east coast. Uganda is now connected via a national fibre backbone extending to its borders with neighbouring coastal countries. By 2013, prices for international bandwidth had fallen to a fraction of their original cost, but retail pricing of broadband services is still relatively expensive, especially when considering purchasing power parity. However, wireless and mobile technologies such as WiMAX, EV-DO, HSPA and LTE are now putting the internet within reach of a much wider part of the population than traditional fixed-line DSL services have in the past. These improvements in infrastructure are revolutionising the market and enabling converged voice, data and digital media services.

At around 50%, total teledensity is still below the African average. A simplified and converged licensing regime has significantly reduced barriers to market entry and increased competition. With annual GDP growth forecast to remain stable at around 7% p.a., growth prospects for Uganda’s telecoms sector are excellent.

Market highlights:

  • Seventh network launches amidst consolidation in crowded mobile sector;
  • Opportunities for MVNOs and tower outsourcing companies;
  • Three 4G (LTE) networks launched;
  • Growth returns to the market after wave of SIM card deregistrations;
  • More than 95% of internet connections are mobile;
  • Internet subscriptions growing at more than 100% per year;
  • Most fixed lines are provided using wireless or mobile systems;
  • Fibre optic network rollouts continue;
  • New fibre links to international submarine cables.

Estimated market penetration rates in Uganda’s telecoms sector – end-2014

Market

Penetration rate

Mobile

51%

Fixed

0.4%

Internet

22%

(Source: BuddeComm based on various sources)

Companies covered in this report:

Uganda Telecom (UTL, LAP Green, Telecel, Orascom, Deutsche Telekom); MTN; Bharti Airtel (Zain, Celtel); Warid Telecom (Essar); Orange (HiTS Telecom); i-Tel; Simba Telecoms; Seacom; Infocom (Altech); Internet Solutions; UTL Online; Africa Online; Spacenet; The Broadband Company (TMP); Wateen Telecoms; Smile Telecom; Foris Telecom; Talk Telecom; Mo Telecom; Goal Technology Solutions (GTS); UMEME; WBS Television; NTV Uganda; MultiChoice; GOtv; Jump TV; Zuku TV (Wananchi); Standard Chartered Bank; Monitise; American Tower Corporation (ATC), Africell (Lintel).

Data in this report is the latest available at the time of preparation and may not be for the current year

Table of Contents

  • 1. Key Statistics
  • 2. Telecommunications Market
    • 2.1 Overview of Uganda’s telecom market
  • 3. Regulatory Environment
    • 3.1 Background
    • 3.2 Regulatory authorities
      • 3.2.1 Uganda Communications Commission
      • 3.2.2 National Information Technology Authority
    • 3.3 Telecommunications Policy 1996
    • 3.4 Uganda Communications Act 1997
    • 3.5 Uganda Communications Act 2013
    • 3.6 Telecom sector liberalisation in Uganda
      • 3.6.1 New competition framework 2005
      • 3.6.2 National ICT Policy
      • 3.6.3 Licensing prior to 2007
      • 3.6.4 New licensing regime
      • 3.6.5 Additional mobile networks
    • 3.7 Interconnection
    • 3.8 Number portability
    • 3.9 Universal Service Fund (USF)
      • 3.9.1 RCDF projects
    • 3.10 Interception of Communications Bill
      • 3.10.1 Registration of subscriber data
    • 3.11 Cyber crime legislation
    • 3.12 Consumer protection
    • 3.13 Taxes
    • 3.14 Counterfeit phones
  • 4. Fixed Network Market
    • 4.1 Fixed-line statistics
    • 4.2 Fixed network operators in Uganda
      • 4.2.1 Uganda Telecom
      • 4.2.2 MTN Uganda
  • 5. Telecommunications Infrastructure
    • 5.1 National fibre backbone infrastructure
      • 5.1.1 MTN and UTL
      • 5.1.2 National Backbone Infrastructure (NBI)
      • 5.1.3 UMEME
      • 5.1.4 Google
    • 5.2 International infrastructure
      • 5.2.1 Submarine fibre
      • 5.2.2 Terrestrial fibre
      • 5.2.3 Satellite, VSAT
  • 6. Internet Market
    • 6.1 Overview
      • 6.1.1 Internet statistics
    • 6.2 Public Internet access locations
    • 6.3 Personal computer market
    • 6.4 Dial-up
    • 6.5 International bandwidth
    • 6.6 Uganda’s ISP market
      • 6.6.1 Overview, licensing
      • 6.6.2 Selected ISPs
      • 6.6.3 Uganda Internet Exchange Point (UiXP)
  • 7. Broadband Market
    • 7.1 Overview
    • 7.2 ADSL
    • 7.3 WiMAX, LTE
    • 7.4 WiFi
    • 7.5 EV-DO
    • 7.6 Mobile broadband
    • 7.7 Convergence
      • 7.7.1 VoIP telephony
      • 7.7.2 Next generation Networks (NGN)
      • 7.7.3 Broadband over powerlines (BPL)
      • 7.7.4 Smart grids
    • 7.8 E-services
      • 7.8.1 E-commerce
      • 7.8.2 E-banking
      • 7.8.3 E-government
      • 7.8.4 E-health
      • 7.8.5 E-learning
  • 8. Digital Media
    • 8.1 Broadcasting in Uganda
    • 8.2 Broadband TV (IPTV)
    • 8.3 Digital Terrestrial TV (DTT)
  • 9. Mobile Communications
    • 9.1 Overview of Uganda’s mobile market
      • 9.1.1 Mobile statistics
    • 9.2 Regulatory issues
      • 9.2.1 Licensing
      • 9.2.2 Taxes
      • 9.2.3 Tariffs
      • 9.2.4 Infrastructure sharing
      • 9.2.5 SIM card registration
      • 9.2.6 Quality of service (QoS)
    • 9.3 Major mobile operators
      • 9.3.1 MTN Uganda
      • 9.3.2 Bharti Airtel Uganda (formerly Zain, Celtel)
      • 9.3.3 Uganda Telecom Ltd (UTL)
      • 9.3.4 Africell (Orange Uganda)
      • 9.3.5 i-Tel
      • 9.3.6 Smile Communications
      • 9.3.7 Smart Telecom, Sure Telecom
    • 9.4 Mobile Virtual Network Operators (MVNO)
      • 9.4.1 K2 Telecom
    • 9.5 Tariffs and price war
      • 9.5.1 Per-second billing
      • 9.5.2 Free calls
      • 9.5.3 Flat rates
      • 9.5.4 MTN Zone
      • 9.5.5 Free international roaming
    • 9.6 Mobile traffic
    • 9.7 Mobile data services
      • 9.7.1 SMS
      • 9.7.2 MMS
      • 9.7.3 WAP, GPRS and EDGE
      • 9.7.4 BlackBerry
    • 9.8 3G and 4G mobile broadband
      • 9.8.1 Mobile broadband statistics
      • 9.8.2 3G, HSPA
      • 9.8.3 Long-term Evolution (LTE/4G)
    • 9.9 Satellite mobile
    • 9.10 Mobile money transfer, m-banking
      • 9.10.1 Traditional bank charges and international remittances
      • 9.10.2 Regulation
      • 9.10.3 MTN Mobile Money
      • 9.10.4 Airtel Money (ZAP)
      • 9.10.5 M-Sente (UTL)
      • 9.10.6 Other services
    • 9.11 Mobile TV
  • 10. Forecasts
    • 10.1 Forecasts – mobile market 2015; 2018
    • Table 1 – Country statistics – 2014
    • Table 2 – Fixed-line network statistics – 2014
    • Table 3 – Internet provider statistics – 2014
    • Table 4 – Internet statistics – 2014
    • Table 5 – Mobile statistics – 2014
    • Table 6 – National telecommunications authority
    • Table 7 – Fixed lines in service and teledensity in Uganda – 1995 - 2014
    • Table 8 – Fibre optic cable assets in Uganda by operator – June 2013
    • Table 9 – Internet users and penetration rate in Uganda – 1995 - 2014
    • Table 10 – Fixed vs. mobile internet subscriptions in Uganda – 2007 - 2013
    • Table 11 – Uganda's international internet bandwidth – 1999 - 2013
    • Table 12 – Uganda Telecom ADSL and ISDN pricing – 2010 - 2013
    • Table 13 – Uganda Telecom WiMAX pricing – 2012, 2013
    • Table 14 – MTN Uganda ADSL, WiMAX and Metro Ethernet pricing – 2012
    • Table 15 – Smile Telecom Uganda WiMAX and LTE pricing – 2012
    • Table 16 – Foris Telecom Uganda prepaid WiMAX pricing – 2012
    • Table 17 – Uganda Telecom WiFi hotspot pricing – 2009 – 2013
    • Table 18 – Historic - Mobile subscribers and penetration rate in Uganda – 1996 - 2004
    • Table 19 – Mobile subscribers and penetration rate in Uganda – 2005 - 2014
    • Table 20 – Mobile operator market share of subscribers – 2012 - 2013
    • Table 21 – MTN Uganda subscribers – 2000 - 2014
    • Table 22 – MTN Uganda ARPU – 2002 - 2013
    • Table 23 – Zain Uganda subscribers – 2002 - 2013
    • Table 24 – Zain Uganda ARPU – 2006 - 2009
    • Table 25 – Orange Uganda mobile subscribers – 2009 – 2014
    • Table 26 – Warid Telecom (Uganda) GPRS/EDGE pricing – 2012
    • Table 27 – Uganda Telecom GPRS/EDGE pricing – 2012
    • Table 28 – MTN Uganda Blackberry pricing – 2012
    • Table 29 – Active mobile broadband penetration in Uganda – 2009 - 2012
    • Table 30 – Uganda Telecom 3G mobile broadband pricing – 2012
    • Table 31 – Orange Uganda 3G/HSDPA mobile broadband pricing – 2012
    • Table 32 – MTN Uganda 3G/HSDPA mobile broadband pricing – 2012
    • Table 33 – Airtel Uganda HSPA+ pricing – 2012
    • Table 34 – Warid Telecom (Uganda) unlimited HSPA+ pricing – 2012
    • Table 35 – Forecast mobile subscribers in Uganda – 2015; 2018
    • Chart 1 – Fixed lines in service and teledensity in Uganda – 2002 - 2014
    • Chart 2 – Fixed/wireless access technologies market share in Uganda – December 2011
    • Chart 3 – Internet users and penetration rate in Uganda – 2003 - 2014
    • Chart 4 – Mobile subscribers and penetration rate in Uganda – 2002 - 2014
    • Chart 5 – Telecommunications tax revenue in Uganda by tax type – 2008 - 2012
    • Chart 6 – Mobile tariffs in Uganda, on-net and off-net – 2009 - 2011
    • Chart 7 – Mobile traffic in Uganda by traffic type – 2008 - 2012
    • Chart 8 – Mobile vs. fixed internet subscriptions in Uganda – 2007 - 2013
    • Exhibit 1 – International gateway licences fees
    • Exhibit 2 – Emergency rescue scheme for Lake Victoria

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