By Ben Musanje
The Uganda Communications Commission (UCC) has agreed to explore possible licensing arrangements for public Wi-Fi hotspot operators following a request by the Kampala City Traders Association (KACITA) to suspend enforcement against unlicensed providers and allow time for consultations.
The decision follows a meeting between UCC officials and KACITA members as the regulator prepares to enforce its directive requiring unlicensed public Wi-Fi hotspot operators across the country to switch off their services and dismantle their equipment.
During the meeting, UCC Executive Director Nyombi Thembo announced the formation of a multi-stakeholder committee to examine possible licensing arrangements for Wi-Fi hotspot resellers, with the aim of identifying a lawful framework under which eligible operators can continue doing business.
The Commission also announced a registration exercise for all Wi-Fi hotspot resellers to establish their numbers, locations, equipment types and other relevant operational details. The exercise is expected to help UCC understand the nature and scale of the businesses and inform further regulatory engagement.
Speaking on behalf of the hotspot providers, KACITA Chairperson Issa Ssekito asked the Commission to suspend the enforcement deadline to allow more time for consultations. He also appealed to UCC to guide operators on the appropriate licences or regulatory arrangements through which they could bring their businesses into compliance.
The engagement follows last week’s announcement by UCC that all unlicensed public Wi-Fi hotspot operators had seven days to switch off their services and dismantle their equipment, after which those who remained operational would face enforcement, including the seizure and destruction of routers.
Thembo said the directive followed earlier notices and engagements with hotspot providers, adding that the Commission had moved from warnings to enforcement after assessing the sector. The seven-day window, he said, had been agreed upon with the operators following a meeting held on Monday.
UCC first issued a notice in July after receiving complaints from licensed internet service providers (ISPs). The Commission later held consultations with hotspot operators before announcing the enforcement measures in collaboration with licensed ISPs, telecommunications operators and relevant government agencies.
UCC estimates that about 4,000 unlicensed operators are selling public Wi-Fi services nationwide, with new entrants continuing to join the market.
According to Thembo, the operators typically purchase high-speed fibre-to-the-home and fixed wireless internet connections, including 5G fixed wireless services, from licensed providers before reselling the connectivity to the public without the required authorisation.
The regulator has defended its crackdown on grounds of tax compliance and fair competition, arguing that unlicensed resellers undermine companies that invest in network infrastructure and meet their tax and regulatory obligations.
Thembo said licensed operators charge an average of Shs2,000 per gigabyte after taxes and regulatory fees, while hotspot resellers sell the same volume for about Shs1,000 without remitting the required taxes and fees to government.
UCC estimates that the government loses approximately Shs148 billion annually in tax revenue from the unlicensed operations, a figure the Commission says continues to rise.
The regulator has also rejected arguments that the lower prices offered by hotspot operators amount to affordable internet, maintaining that public internet services must be provided within the established legal and regulatory framework.
Under the Uganda Communications Commission Act, 2013, providers of telecommunications services to the public are required to obtain the appropriate licence from the Commission.
The proposed committee and registration exercise could provide a pathway for eligible hotspot resellers to formalise their businesses. However, UCC has not announced whether it will grant KACITA’s request to suspend the enforcement deadline.
The Commission maintains that its enforcement measures and ongoing consultations are intended to ensure that all public internet service providers meet the required standards of accountability, service quality and reliability while operating in accordance with the law. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
