MTN Uganda might be paying a higher fee to acquire Telecommunication Licence in Uganda. The increase in licensing fee came as an offshoot of the new framework released by the Ugandan Communication Commission, UCC.
The stride to revamp the Uganda telecom licensing framework began in 2018 and was completed a few days ago. The new framework that is expected to take full force in 2020 came with some fundamental changes. Some changes in the law include:
An increase in the duration of the National Telecom Operator (NTO) Licence from 15 to 20 years. This comes with an increased fee and a compulsory clause to list on the Uganda Stock Exchange.
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A separate licence under the National Public Service Provider (NPSP) It allows the licensee to provide voice and data services, including capacity sales across Africa.
There is also the National Public Infrastructure Provider (NPIP) and others.
MTN is the largest telecom company in Uganda and functions under the National Telecom Operator NTO licence with a telecom spectrum that covers 95% of Uganda.
To acquire the NTO licence under the new licensing framework, MTN will have to pay $118 million for the duration of the 15-year license. This amount is extremely as compared to the previous amount paid to acquire licences in the country.
Meanwhile, the telco still has to acquire 3-4 other licences as listed in the reformed licensing platform.
The UCC spokesperson, Ibrahim Bbosa noted that the new licence is meant to regulate the Telecom sector in Uganda. He also said the team has requested clarification and negotiation to reduce the amount for the licence.
He noted that the agreed bargain will serve as an aggregate to determine the amount other telecommunication companies in the country will pay.
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