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    UCC finally raises Pay TV license fees to UGX 95 million

    The Uganda communication commission (UCC) 2 months ago marked PayTV broadcasters as uncompliant after issuing strong license restrictions and fees only to spark off a cold war with the providers. While the fierce notice by UCC sparked off a teasing announcement by Pay TV providers redefining their services with intentions to increase package fees. The deadlock forced UCC to set several negotiations with the said PayTV providers after which the regulator is set to enforce agreed Pay TV license fees amounting to UGX 95 million unlike the previous UGX 550 million.

    ” The only logical consequence is when cost of business goes up, prices go up. But since it has not changed for many years, people should be willing to pay more whether it is the subscribers or investors ” – Ms. Sheila Nyanzi

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    According to the Kwese East Africa regional head Ms. Sheila Nyanzi. Several PayTV might increase package/service fees in order to re-align with their in-house regulations. Although a majority of the PayTv providers may subsidize the cost, those that will be left with no choice by to increase will see their subscribers pay a little more than the usual package rates as agreed in several meetings with the regulator as she further asserted.

    Requirements of UCC’s new PayTv licensing regime

    1. UCC agreed with the submission by pay TV operators that operators without the physical infrastructure in Uganda shall not be allowed to obtain public infrastructure provider (PIP) licenses.
      2. Only operators providing services through Terrestrial, cable and other transmission infrastructure shall be required to obtain PIP licenses.
      3. All broadcasters providing services to the final consumers shall be required to obtain a public service provider (PSP) license.
      4. PIP license shall be for a period of 15 years, renewable upon satisfactory performance of the license terms and conditions.
      5. PSP license shall be for a period of 5 years, renewable upon satisfactory performance of the license terms and conditions.
      6. Existing pay-TV operators in Uganda not be required to pay initial entry fees for any of the license applied for.
      7. Pay TV operators shall pay an annual license fee of $25,000 or 0.65% of the operators gross annual revenue. Every pay TV operators shall be required to submit audited books in accordance with the reporting requirement.
      8. Pay Tv shall carry a minimum of 20% local content on their broadcasting platforms.
      9. Where, for whatever reason, a pay TV operator failed to meet the 20% local content threshold, the commission shall determine the amount of monetary contribution to be made by the respective operators towards the content development fund
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    Farooq Gessa Mousal
    Farooq Gessa Mousal
    Techjaja: CTO

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