CASE STUDY: UGANDA

CASE STUDY: UGANDA

Kyeyune Helen

The Republic of Uganda is a landlocked country in East Africa covering an area of 235,885-sq Km. The G.D.P per capita is estimated at US $ 322 for 97/98 period.

Uganda is mainly an agricultural country with strong emphasis on diversifying of export commodities. The population is about 20.4 m with an approximate Tele-density of 0.28 lines per 100 people. It is important to note that 80% of the population lives in the rural areas but 70% of the telecommunication services are in the urban areas.

The Uganda Communications Commission was formed in 1997 after the Uganda Communications Act had been passed. This was after Government had decided to liberalize the Communications sector, thereby separating regulatory roles from operational roles, and also separating the two from policy makers. This therefore, saw the breaking of the monopoly that Uganda Posts & Telecommunications Corporation was enjoying as a sole operator before then.

UCC was therefore, put in place to meet the objectives of the Communications Act

OBJECTIVES OF UGANDA COMMUNICATIONS COMMISSION

UCC regulates both the telecommunications and postal services in Uganda with the following main objectives:

To enhance national coverage of communications services and products, with emphasis on new varieties that are more cost effective.

To encourage the participation of private investors in the development of the telecommunications sector, thus enabling competition and thus better services to the population.

To develop and improve rural communications services.

OPERATIONS OF UCC

The main characteristics of the operations of the UCC are openness and private sector participation. The Commission feels that Uganda has unique developmental needs in the sector and the solutions require participation by all stakeholders.

The Commission has opted for an approach of facilitation rather than policing while ensuring competition and fairness to all.

The Commission has set up a Rural Communication Development Fund, which is intended to be used to leverage investments in rural communication services. Use of this Fund will be on competitive basis.

The Commission is emphasizing understanding of telecommunications as a vehicle rather than an end. Projects like Tele-education, and Tele-medicine are encouraged.

The Commission will co-ordinate with the electric utilities in extending services to rural places, as availability of power makes the use of Fixed Wireless Access one of the most promising approach to rural telecommunications, more easily, achievable.

UCC is proactive in ensuring penetration of spectrum efficient technology solutions so that UCC initiates changes rather than waiting for the operators to take the initiative.

TELECOMMUNICATION SECTOR REFORM

In 1996, the government decided to implement sector reforms, as sit telecommunication availability has a direct bearing on the development of the economy of a country.

Uganda Communications Commission (UCC) was put in place as independent operator to regulate the industry while playing an advisory role to government on policy.

In 1996, there were about 46,207 fixed telephone lines of which about 36,472 were in the Kampala metropolitan area. There were about 3,500 mobile lines.

A Second National Operator was licensed and started operation in October 1998.

The table below gives a comparison of the services in 1996, when reforms were instituted and 1998; 2 years after reforms were instituted.

TABLE 1: COMPARISON OF SERVICES IN 1996 AND 1998

	1996	1998
Fixed Telephone lines connected	46,207	55,749
National Telephone Operators	1	2
Mobile Cellular operators	1	2
Mobile lines	3,500	40,000
Internet Providers	2	7
Public payphone licenses	1	10
Paging	2	3
Data Networks	2	5

SECTOR POLICY OBJECTIVES

In taking the decisions that were taken, the main objectives were to;

Put in place an independent regulator

Increase of Tele-density from 0.28 lines per 100 people to l2.0 lines per 100 people by year 2002.

Improve telecommunications facilities and quality of service as well as adding variety of new telecommunications services.

Serve the unmet customer demand and

Increase the geographical distribution and coverage of the services throughout the country.

To achieve the objectives some of the key targets that were set included;

National network digitalization of at least 75%.

Increased subscriber lines to at least 300,000 lines by 2002

Improve the call completion rate.

Communications Sector Comparative Figures for the Period Feb 2001 to Dec 2003
	Services Provided	Feb 2001	Jul 2001	Jul 2002	Sept 2002		Dec 2002		Mar 2003		Jun 2003		Sept 2003	Dec 2003
	Fixed Telephone Lines	61,462	56,149	54,976		55,453		59,472		59,590		60,995	64,856	65,793
	Mobile Cellular Subscribers	188,568	276,034	393,310		443,903		505,627		595,996		621,082	711,313	893,035
	Internet/Email Subscribers	5688	5999	6500		6500		6500		7024		7024	7024	7024*
	National Teleco Operators	2	2	2		2		2		2		2	2	2
	Mobile Cellular Operators	3	3	3		3		3		3		3	3	3
	VSAT International Data Gateways	8	8	8		8		8		8		8	8	8
	Internet Service Providers	11	11	17		17		17		17		17	18	18
	Private FM Radio Stations	100	112	115		117		117		117		119	122	125
	Private Television Stations	19	20	22		22		22		22		22	22	23
	National Postal Operator	1	1	1		1		1		1		1	1	1
	Courier Service Providers	10	10	11		11		11		12		14	17	19
	Pay Phones	3,075	3,310	3,278		3,282		3,200		3,086		3,036	3,347		3,456

National Spectrum Management Obligation

In accordance with Uganda Communications Act 1997,

1. Uganda Communications Commission to ensure the orderly development and efficient operation of radio communications in Uganda, shall be the exclusive authority to issue:

(a) Licences for radio communications apparatus and spectrum use, and licences for possession and operation of radio communication apparatus;

(b) Any licence the Commission may consider appropriate and may fix the terms including the paying of fees for those licences.

2. Uganda Communications Commission, notwithstanding any other law, shall have the exclusive duty to:

(a) Plan, monitor, manage and allocate the use of radio frequency spectrum;

(b) Establish technical requirements and technical standards in relation to:

(i) radio communications apparatus;
(ii) interference-causing apparatus or any class there of;

(c) Negotiate with the International telecommunications Union or its affiliated bodies in matters referred to in paragraph (a).

Office of Spectrum Management

In executing its functions as outlined above, Office of Spectrum Management was established within Uganda Communications Commission.

The office of Spectrum Management is responsible for spectrum management activities, whose effectiveness is essential for maintaining access to radio spectrum and hence the benefits radio can provide to Uganda as a country.

The Office is responsible for the frequency planning, coordination allocations, assignments, regulating and administering of the use of radio frequencies; and the monitoring and enforcement procedures. It is further responsible for establishing regulations, frequency fees structure, technical parameters and standards governing the use of each band ensuring that current international regulations are met.

With such increase in the use of the radio frequencies, spectrum management has become particularly important for Uganda especially where:

(a) Local terrain favors the use of digital microwave as a transmission media for telephony;

(b) Currently there is an existing need for rural telephony penetration, a need that may be met by radio extensions (such as through mobile cellular networks /wireless local loop) from the existing backbone systems.

Considering that radio spectrum is a natural but limited resource, and that no additional spectrum can be produced or discovered, the UCC is maximizing spectrum capacity by adopting one or more of the following strategies:

(a) Making more efficient use of the current allocations;

(b) Re-accommodating incumbent spectrum users to less congested frequency bands;

(d) Taking advantage of newer technologies that utilize high frequencies.

INNOVATIONS IN PROVIDING SERVICE IN UGANDA

UCC has adopted a proactive approach in technology introduction, supportive of innovations by service providers when trying to meet the needs of the population. The varying communications needs of the populations require innovations and tailor made solutions. For example UCC has licensed;

Public payphone operators

Internet via High Frequency Radio Bands

2.4 ISM band usage for data and internet connection

UCC is keenly following developments in the wireless based technology solutions, especially in the areas of affordability and quick deployment.

DEVELOPMENT OF RURAL COMMUNICATIONS

The development of rural communications is of great importance to UCC. Operators have been required, directly through the License rollout obligations, to attend to rural communication development

UCC on the other hand has set up and manages the Rural Communications Development Fund. The fund, while limited, will be used to leverage investment in rural telecommunications through competitive private sector bidding.

The Commission also hopes to encourage:

- Policy conducive to rural telecommunications development.

- Technology choices appropriate for rural areas.

- Models for serving rural and isolated communities.

INCENTIVE FOR INVESTORS

The Uganda Government as an incentive to the two major licensees agreed to offer duopoly exclusivity period of 5 years for voice, fax and leased lines, after which those services will be open for full competition like all the others. There is a wide range of investment opportunities.

For example during the exclusivity period, it is permissible for parternships with the major Licence holders to offer services in the exclusive category.

Otherwise areas like;

Internet

Paging

Data and international data gateways

Courier services

Public payphones (using lines from major operators) are open for full competition

The Commission is very supportive of innovations and takes time to study application when made.

NATIONAL OPERATORS

Different categories of licences have been identified in the sector under the current licensing regime. The first category is that of National Operators. One national operator, Uganda Post Limited (UPL) has been licensed to provide postal services in Uganda.

On the telecommunications side, two national operators have been licensed, Uganda Telecom Limited(UTL) and MTN Uganda Limited. These are licensed to provide the full range of communications services