As telecom companies gear up to launch their respective 5G networks in the country, the Uganda Communication Commission (UCC) has finally distributed the available spectrum for use in deployment. The commission recently published an invitation, on the 25th of May 2023, to interested persons to apply for radio spectrum under a competitive multi-band award process for the deployment of broadband services in Uganda. Following the evaluation of the received submissions against the criteria set out in the invite, Airtel Uganda and MTN Uganda emerged successfully to be assigned spectrum. The two giant telecoms have been able to scoop over 68% of the available spectrum which represents 25 out of 37 available blocks (see table below).
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In the competitive multi-band award process. the telcos had to pay an initial commitment fee (bank guarantee) of up to USD 1.5 million if they wanted to deploy the new technology using more than one frequency band. The regulator had planned complete the allocation process by mid-August this year after the carriers had completed the spectrum reservation process by the 21st of July but seems the process has been fast-tracked.
Band | Available blocks | Block size (MHz) | Awarded to MTN (MHz) | Awarded to Airtel (MHz) | Remaining blocks |
---|---|---|---|---|---|
700MHz (FDD) | 4 | 2×5 | 2(2×5) | 0 | 2 |
800MHz (FDD) | 2 | 2×5 | 0 | 2(2×5) | 0 |
2300MHZ (TDD) | 10 | 1X10 | 1X100 | 0 | 0 |
3500MHz (TDD) | 20 | 1X10 | 0 | 1×100 | 10 |
2600MHz (FDD) | 1 | 2×10 | 2×10 | 0 | 0 |
Both telecoms have taken the best available spectrum blocks required to deploy a good 5G network. 5G spectrum holding in the sub (below) 1GHz spectrum band(s) of a successful applicant of the 700MHz and 800MHz bands was awarded to MTN and Airtel respectively. There is only one more available spectrum available in this band, which means only one telecom company can buy this later. UCC has said that they will not assign telecom companies two 5G specturm allocations in the low bands i.e. in both the 700MHz and the 800MHz. This a precious band as it helps with the quick roll-out of coverage of networks as it offers good long-range coverage. Check out the distribution in the table above.
Both networks have acquired over 100MHz of TDD (Time Division Duplex) band in the mid-bands 2300 MHz, 2600MHz, 3300MHz, and 3500MHz spectrum that can be used in densely populated areas. Applicants shall be required to pay the applicable fees in full, as outlined in the Uganda Communications (Fees and Fines) (Amendment) Regulations, 2023, S.I. No. 24 of 2023.
5G spectrum applicants had to present to UCC a clear roll-out and business plan before they could be awarded any spectrum. The regulator required telecom companies to have a five-year roll-out plan and should highlight the specific milestones, timelines, and indicators to measure progress for the realization of the proposed network and/or expansion.
Before UCC would assign this new 5G spectrum, telecom companies had to commit to the following when it comes to data costs by 2025;
- Reducing the cost of 1GB of mobile internet to less than UGX 2,100
- Reducing the cost of 1Mbps of fixed wireless internet connection to less than UGX 106,400