FDC Urges UCC to Formalise Wi-Fi Resellers

The Forum for Democratic Change (FDC) has urged the Uganda Communications Commission (UCC) to introduce affordable licensing for public Wi-Fi hotspot operators instead of shutting down their businesses, arguing that the services have created jobs and expanded access to cheaper internet.

The opposition party’s position follows UCC’s seven-day ultimatum to about 4,000 unlicensed operators to stop providing public Wi-Fi services and remove their equipment ahead of a nationwide enforcement campaign. 

 

In a press briefing on Monday, FDC Vice Chairperson Centenary Robert Franco said the government should support young people who have established small internet businesses to serve communities struggling with the cost and accessibility of connectivity.

“Government is supposed to provide free or affordable internet to its citizens. Internet is no longer a luxury. It is a necessity for education, health, business, communication, and access to government services,” the party said. 

“If government cannot provide it, it should not punish those who are providing it.” The FDC wants UCC to establish simple, affordable and transparent licensing arrangements that would enable the operators to formalise their businesses. It also called on telecommunications companies to avoid imposing what it described as unfair payments and conditions on small resellers. 

The party argued that the businesses have helped students access learning materials, enabled small traders to conduct business online and allowed farmers to obtain market information. It further cited Kenya as an example Uganda could learn from in formalising internet reselling, creating jobs and expanding affordable connectivity. 

The FDC’s position comes amid growing tensions between hotspot operators and the regulator over how to balance affordable internet access with licensing, taxation, consumer protection and infrastructure safety. 

On October 13, UCC Executive Director George William Nyombi Thembo announced that the commission was moving to enforce regulations against unlicensed public Wi-Fi services after assessing their operations. Nyombi said the operators mainly purchase high-speed fixed broadband, including fibre-to-the-home and fixed wireless access, from licensed providers before reselling connectivity to the public without the required authorisation. 

He said the practice undermines licensed telecommunications companies, which invest in infrastructure and meet regulatory obligations, while depriving the government of an estimated Shs148 billion in annual tax revenue. 

 

UCC also cited cybersecurity and data privacy concerns, limited avenues for consumer complaints and the risks associated with mounting unauthorised equipment on electricity poles and other public infrastructure. 

 

“The commission has completed its assessment of these illegal operators, and we are now moving to enforcement,” Nyombi said. 

The regulator estimates that licensed providers charge an average of Shs2,000 per gigabyte, inclusive of taxes and other costs, while unlicensed hotspot operators sell access at about Shs1,000 per gigabyte. 

Nyombi has argued that the lower prices charged by unlicensed operators do not necessarily represent fair competition because the businesses do not meet the same licensing, taxation and infrastructure obligations as authorised providers. 

UCC has also linked the growth of unlicensed hotspots to the loss of about 1.5 million customers from licensed services, although the figures and their implications for internet pricing are claims made by the regulator. The enforcement announcement followed a meeting Nyombi held with Wi-Fi and hotspot operators on October 12, after receiving complaints about the proposed regulatory measures. At the time, he said the commission had decided to examine the concerns before determining the way forward. 

“True to our ethos of professional honesty and fair regulation, the Commission has taken time to thoroughly examine these concerns,” Nyombi said following the engagement. He cautioned, however, that regulation must protect the wider public interest and the sustainability of the communications sector. 

 

“Unchecked operations that bypass established public frameworks ultimately undermine the collective interest and harm the wider sector,” he said. Following the assessment, UCC announced the seven-day ultimatum and said it would hold guidance sessions to help willing operators transition to legal operations under the applicable licensing frameworks.

The commission warned that the nationwide operation would involve identifying and dismantling unauthorised installations and seizing routers and related equipment. 

 

It also said equipment that could not be regularised could be destroyed in accordance with the law. Despite the tough enforcement stance, Nyombi has acknowledged the employment concerns surrounding the businesses.