Synopsis
Once referred to as the Pearl of Africa, then devastated by civil war, peace and radical economic reforms have transformed Uganda into one of the fastest and most consistently growing economies on the continent. The entry of MTN as the second national operator to compete with Uganda Telecom in all telecom services, including fixed lines and a total of five mobile networks, has revolutionised the sector. At around 30%, total teledensity is still below the African average, and all market segments are experiencing strong growth. A new simplified and converged licensing regime has significantly reduced barriers to market entry and increased competition, but this has also led to an unsustainable price war. Major initiatives have been launched to bring telecommunication services and the Internet to rural areas of the country. International submarine fibre optic cables arriving at the African east coast for the first time in 2009/10 will dramatically reduce the cost of international bandwidth, in combination with several national backbone networks being rolled out.