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    Why Uganda Telecom mobile network has been switched off

    Mobile subscribers on the Uganda Telecom (UTL) network have for over four days not been unable to make or receive calls, an issue which has troubled the few remaining subscribers of the national mobile network.

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    The lack of communication has stretched Uganda Telecom’s loyal customers to the limits and are now opting to switch to other mobile network operators.

    Uganda Telecom is currently under receivership due to huge debts and is currently owned by the government of Uganda. For the third day running, UTL remains non-committal as to when this problem will be rectified.

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    In a short statement issued yesterday, Uganda Telecom management said: “We are currently experiencing a technical failure on our Mobile service platforms. Restoration updates will be communicated.  Inconveniences caused are highly regretted.”

    It should noted that UTL is the only telecom without a full 4G mobile data network and still running on old 2G and 3G equipment. There is no official communication from the industry regulator, Uganda Communications Commission (UCC) so far but we expect them to comment on the matter soon.

    A Timeline of Uganda Telecom’s woes

    In February 2000, UCOM Ltd bought 2,040,000 ordinary shares of UTL at $33.52 million from the Government of Uganda. This meant that UCOM became a majority shareholder with 51%, while the GoU became a minority shareholder with 49%. The allotment gave a lot of powers to the majority shareholder (UCOM) in making major decisions such as the hiring of key managers, provision of technical assistance, and borrowing loans for the company.

    2007 – 2017: Uganda Telecom reported heavy losses despite massive borrowings. UGX 16.21bn in 2008, UGX 11.86bn in 2009, UGX 69.26bn in 2010, UGX 145.63bn in 2011, UGX 27.67bn in 2012, UGX 59.91bn in 2013 and UGX 229.51bn in 2014.

    March 2017: The government revealed that the Libyan Post, Telecommunications and Information Technology Company (LPTIC), the entity that owns 69 percent of Uganda Telecom had thrown in the towel.

    March 2017: Uganda Telecom was placed under receivership under Bemanya Twebaze.

    May 2018: Ugandan Government puts up a revamping strategy including sourcing for competent investors, an extension of Uganda Telecom’s license for 20 more years, expansion of the telecom’s spectrum as well as giving it unlimited access to the National Backbone Infrastructure.

    Afrinet Communications, Mauritius Telecom, Hamilton Telecom, Telecel Global, Baylis Consortium and Teleology show interest in taking over UTL. Teleology seemed to offer the best deal.

    June 2019: Investment Minister Hon. Evelyn Anite told members of Parliament that government no longer has any control of UTL Operations under Bemanya Twebaze, with no more access to the company premises for any audits to be done.

    Ruth Sebatindira
    Ruth Sebatindira-Uganda Telecoms’s company administrator

    The company administrators would, in response, call a press conference to deny all the accusations posed by the minister insisting that neither refused government from accessing UTL premises.

    Jan 2020: Bemanya Twebaze was finally kicked out as Uganda Telecoms’s company administrator and Ruth Sebatindira was appointed by the court following a presidential directive for the company to get a new administrator.

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    IN THIS STORY STREAM

    Farooq Gessa Mousal
    Farooq Gessa Mousal
    Techjaja: CTO

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