The number of mobile internet subscriptions has failed to keep up with the outstanding first quarter in 2020. Between January and March 2020 the country registered a growth of over 1.5 million internet subscribers, but according to UCC‘s latest report, there was a growth of less than 100,000 new connections from March to June 2020.
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At the end of June 2020, total internet stood at 18.9 million connections, translating into a penetration of 46 internet connections for every 100 Ugandans.
While the number of new mobile internet connections is not as outstanding as the quarter one 20 additions, this remains noteworthy growth in light of the general contraction in mobile subscriptions and devices. This new growth is indicative of the conversion of previously voice-only customers into internet users.

The customer migration from 2G to data services may be the result of:
- New demand from Work-From-Home protocols instituted by different corporate bodies following the nationwide lockdown.
- New price competition resulting in subsidized internet offerings by the leading carriers during the lockdown.
- Targeted customer migration campaigns by MTN Uganda and Airtel Uganda during this period. These campaigns specifically offer customers promotional data bundles to test the 4G/3G experience.
- Knock-on effects from heightened infrastructure investment by the MNOs in 2019
Smartphone distribution
The global smartphone market has witnessed the first year-on-year contraction with leading handset makers like Samsung, Huawei, and Xiaomi reporting double-digit percentage drops in global handset shipments.
According to UCC’s report, in Uganda, the early knock-on effect of the global market contraction in 2Q20 has been a 1% reduction in total internet-enabled gadgets connected to the network (smart and feature phones).
These have dropped from 24.4 million at the end of March to 24.1 million at the end of June 2020. This is the first time that new devices have failed to offset the number of discontinued handsets on the network.
Subsequently, the slowdown in new device connections has had a trickle-down effect of stagnant internet subscriptions.
Amidst the disruption in global supply chains, domestic carriers have nonetheless continued with partnerships with independent hardware distributors to stimulate new handset sales and connections. Examples of these partnerships include:
MTN Uganda Limited partnered with Tecno Mobile to launch the Camon 15 series in June 2020 at a launch price of UGX 688,000. This included 3GB free every month for the first three months after purchase.
Airtel Uganda Limited in partnership with Infinix launched the Inifinix Note 7 series priced between UGX 655,000 – UGX 834,000. The handsets come with a number of monthly data offers.