A new licensing regime for Uganda telcom operations will soon take effect as telecom operators have up to January 30 to formally the Ugandan Communication Commission (UCC) of the type of licence categories they want to apply for under a new licensing regime. The new licensing framework which is to come into force in June 30 was announced last October.
In April 2019, UCC sent out a stakeholder contribution proposal that considered reviewing the current licensing framework. The review entailed extending the scope of some existing licenses and introducing new license categories to address the emerging policy and industry concerns. The new framework is based on 5 key principals.
- Local Listing of shares (at least 20% on USE within two years of acquiring licence )
- Structured renewal of licenses
- Number portability
- Spectrum Management
- National Coverage
According to Ibrahim Bbosa, the director of public and corporate affairs at UCC, the new licensing categories were created after a review of the broadband policy. Mr Bbosa said the new policy framework structure is aimed at improving the quality of telecommunication services and boost investment in the sector. It has also been standardized and reclassified to cater for both existing and new operators.
The new licensing framework structure standardizes and reclassifies the existing and new telecoms into 5 licensing categories viz: National Telecom Operator (NTO), National Public Service Provider (NPSP), Regional Public Service Provider (RPSP), National Public Infrastructure Provider (NPIP) License and finally the Regional Public Infrastructure Provider (RPIP) License. The distinguishing features of the aforesaid licenses are summarized in the table below:
| FEATURE | NTO | PSP | PIP | |
|---|---|---|---|---|
| 1. | Scope of License | (i) Licensed to provide infrastructure services within the boundaries of Uganda (ii) Establish and operate telecommunications services | Regional License Licensed to provide services to consumers in the specified licensed region(s) | Regional License Licensed to provide infrastructure services within the specified licensed zone(s)/ region(s) |
| National Establish and operate telecommunications services nationally (all defined geographic zones) | National Licensed to roll out and provide infrastructure services nationally (all defined geographic zones) | |||
| 2. | Area of coverage | Entire geographical boundary of Uganda and must at a minimum cover and provide service in 95% of this geographical area. | Regional License (i)Provision of services within the license zone (as per defined geographic zones). (ii) Roaming agreements shall be limited to the licensed region. | Regional License Infrastructure rollout and provision limited to license zone (as per defined geographic zones) |
| National Entire geographical boundary of Uganda | National Roll out and provide infrastructure across the country | |||
| 3. | Spectrum Allocation to be determined by technical plan and area of coverage | Will be eligible for national allocation based on expansion /development plan, legal and regulatory framework, public interest and availability of the respective resources. | N/A | Eligibility shall be based on licensed region (s), subject to availability, and upon consideration of expansion /development plan, legal and regulatory framework and public interest. |
| 4. | National Roaming and Infrastructure sharing | (i) Obligatory to host and/or provide infrastructure services to PSP for regional and national rollout of services within their respective licensed zones (ii) Obligatory to host and/or lease to or from National operator and or PIP for network rollout and provision of infrastructure within licensed zones. | To obtain infrastructure services from NTOs and PIPs in licensed areas | To lease to and lease from NTOs and PIPs for the rollout of infrastructure in licensed zones |
| 5. | Listing on Stock Exchange | Shall be required to list at least 20% of its shares on the Uganda Stock Exchange within two (2) years from the date of grant/ issuance of license. | 20% of local ownership | 20% of local ownership |
| 6. | License duration | 15 years | 5 years | 15 years |
| 7. | Compliance Certificates | Annual | Annual | Annual |
| 8. | License Fee | License renewal/Grant fee of 2% of the Licensee’ Projected Gross Annual Revenue for either 15 or 10 years depending on the choice of the applicant. | National 2% of the licensee’s projected Gross Annual Revenue for 5 years. | Regional License 2% of the licensee’s projected Gross Annual Revenue for 15 years. |
| National 2% of the licensee’s projected Gross Annual Revenue for 15 years | ||||
| 9. | Annual license fee | 0.25% of the Gross Annual Revenue or USD 50,000 whichever is higher | PSP Voice & Data 0.25% of the Gross Annual Revenue or USD 20,000 whichever is higher PSP Capacity Resale 0.25% of the Gross Annual Revenue or USD 5,000 whichever is higher | National 0.25% of the Gross Annual Revenue or USD 30,000 whichever is higher Regional License 0.25% of the Gross Annual Revenue or USD 10,000 whichever is higher |
In reaction to the above features ,there were some concerns from the public and also telecom operators who feared that the new licensing framework could disrupt the sector and result into over regulation. Most operators were opposed to the fee increment since they are already paying many other taxes and the fear that changing licenses might adversely affect the rights of existing operator’s licenses.
