The Uganda Communications Commission is considering a community-based licensing model for an estimated 4,000 small-scale internet operators, but says the suspension does not exempt them from existing laws.
The Uganda Communications Commission (UCC) has formed a multi-stakeholder committee to examine licensing options for unlicensed public Wi-Fi resellers, as the regulator seeks to bring an estimated 4,000 operators into compliance with telecommunications laws.
The committee follows a meeting on October 20 between UCC and members of the Kampala City Traders Association (KACITA), according to an official statement from the regulator. It will examine possible licensing arrangements that could allow eligible operators to continue providing internet services legally.
UCC Executive Director George William Nyombi Thembo said the commission would also register Wi-Fi resellers to establish their numbers, locations, equipment types and other operational details.
The consultations come as UCC prepares to enforce licensing requirements against businesses that purchase internet packages from licensed providers and resell connectivity to the public through Wi-Fi hotspots.
Licensing options under review
The proposed framework could provide a route for small businesses serving residential buildings, shopping arcades and neighbourhoods to obtain the necessary authorisation.
UCC said the committee would examine possible arrangements, but did not announce an approved licensing model or provide a timetable for introducing new rules.
The registration exercise is expected to help the commission assess the scale of the sector and determine what regulatory arrangements may be appropriate.
UCC estimates that about 4,000 unlicensed providers operate across Uganda. The commission says they mainly purchase fixed broadband, fibre-to-the-home and fixed wireless access services before reselling internet access without the required licences.
The regulator has argued that the practice undermines licensed internet service providers, which must meet licensing, tax and consumer-protection requirements.
Enforcement remains a concern
UCC announced on October 13 that it was moving towards nationwide enforcement against unlicensed public Wi-Fi operations after completing an assessment of the sector.
The commission said the planned operation would involve identifying and dismantling unauthorised installations and seizing routers and related equipment. It also said it was working with the Uganda Revenue Authority to restrict the importation of telecommunications equipment by unlicensed operators.
In its October 20 statement, UCC said it would allow discussions with operators to explore possible solutions but could not extend or legitimise unlawful operations.
KACITA chairperson Issa Ssekito, speaking on behalf of Wi-Fi hotspot providers, asked the commission to suspend the enforcement deadline to allow time for consultations. The operators also requested guidance on the licences or regulatory arrangements needed to bring their businesses into compliance.
UCC has cited concerns about consumer protection, network interference, cybersecurity, tax revenue and the installation of equipment on infrastructure without proper authorisation.
The commission’s October 13 statement estimated that unlicensed Wi-Fi reselling was costing the government about Shs148 billion in tax revenue annually. That figure is the regulator’s estimate and has not been independently established in the information available for this report.
Although the committee could recommend a licensing arrangement suited to small-scale operators, any new framework remains subject to further consideration and approval.
