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The Uganda Communications Commission (UCC) has launched a crackdown on illegal and unlicensed Wi-Fi hotspot operators across the country.
In a new directive, UCC stated that this move comes in response to numerous complaints from licensed telecommunication operators who allege that the proliferation of these unlicensed services is creating unfair market dynamics and distorting competition.
The Commission's investigations, conducted under the Uganda Communications Act Cap 103, revealed that illegal operators acquire internet bundles in bulk from licensed Internet Service Providers (ISPs) at wholesale rates.
They then proceed to resell this data to end consumers at significantly lower prices, often under different brand names, creating an uneven playing field for licensed providers whose standard tariffs cannot compete.
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Findings Highlight Unfair Competition Practices
The UCC's findings detail several contentious practices employed by these unlicensed Wi-Fi hotspot providers.
Firstly, they purchase large internet bundles from legitimate Internet Service Providers and then resell this data to the public.
Secondly, the prices at which they retail these bundles are notably lower than what is available through the licensed ISPs' own menus for their target markets, effectively undercutting established businesses.
Thirdly, these operators often resell data under various brand names that are distinct from their source providers, making it difficult for consumers to trace the original service.
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UCC House in Bugolobi, Kampala
In some instances, the UCC found evidence of collaboration between these illegal Wi-Fi operators and licensed entities for the purpose of reselling data to consumers, raising questions about compliance within the licensed sector.
Consequently, the UCC now requires all telecommunication operators to maintain proper records of entities purchasing bulk bundles for resale, submit updated lists of authorised agents by August 31, 2025, and provide comprehensive quarterly lists of all agents offering Wi-Fi hotspot services under their license.
The Mushrooming Wi-Fi Hotspot Business in Uganda
Uganda has witnessed a rapid expansion of Wi-Fi hotspot businesses, particularly in urban and semi-urban areas.
These informal operators, often referred to as "public Wi-Fi" or "hotspot vendors," have thrived by providing affordable internet access, especially to low-income earners and students who cannot afford consistent data bundles from major telecommunication companies.
This business model typically involves purchasing “unlimited” internet packages and then charging users for daily Wi-Fi connections.
This has created a vibrant, albeit largely unregulated, ecosystem for internet access.
The appeal for consumers lies in the perceived affordability and flexibility, while for operators, it represents a low-barrier-to-entry business opportunity.
However, this growth has come at a cost to the formal sector, as licensed ISPs, who invest heavily in infrastructure and adhere to regulatory frameworks, face significant revenue losses due to this unregulated competition.
The UCC's crackdown aims to curb these illicit operations, foster fair competition, and ensure that all players in the telecommunications sector operate within the stipulated licensing and regulatory guidelines. Any licensed operator failing to comply with the new requirements faces enforcement action in accordance with the law, signalling the UCC's determination to bring order to this burgeoning market.