The Ugandan government has announced a $300 million investment to relaunch the state-owned telecommunications company, using the brand name UTeL also known as Uganda Telecom Limited. The new company, called Uganda Telecommunication Corporation Limited (UTCL), will be a fully owned subsidiary of the Ministry of Finance.
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UTL was founded in 1993 and was once the leading telecommunications company in Uganda. However, the company fell on hard times in the early 2010s after the Libyan government, which had a 49% stake in the company, withdrew its investment due to the civil war in Libya. UTL was subsequently placed under administration in 2017.
The new company’s brand, UTeL, will be structured as a public limited company. The Ministry of Finance will hold a 60% stake in the company, while the Ministry of ICT will hold a 40% stake. The company will be headquartered in Kampala, Uganda.
The UGX 300 billion investment from the government will be used to revive UTeL’s operations and infrastructure. The company will also use the investment to launch new products and services, including 4G and 5G networks in the future. The government found it wise to retain it’s state-owned telecommunication network despite the past turmoils.
UTCL will face stiff competition from the two leading private telecommunications companies in Uganda, MTN and Airtel. These companies control more than 90% of the market share.
The Future of UTeL
The government is confident that UTeL will be able to compete with private telecommunications companies. The company has a strong brand and a loyal customer base. The government is also committed to providing the company with the necessary support to succeed.
The relaunch of UTeL is a significant development for the telecommunications sector in Uganda. The company has the potential to provide affordable and reliable telecommunications services to all Ugandans. The government’s investment in the company is a vote of confidence in the future of the telecommunications sector in Uganda.
