1. 23 April 2009 African Economic Outlook 2008/2009 UNECA A review of the ICT sector 2008/09 David Ogong, Director, Competition and Corporate Affairs Uganda Communications Commission July 23, 2009

2. UNECA Outline 1)Status of ICT Infrastructure 2)Trends in Licensing 3)Service growth and penetration 4)Trends in retail and whole sale tariffs 5)Universal Access Interventions 6)Industry innovations 2

3. UNECA 3 The Telecommunications Sector at a Glance June -08Sept -08 Dec -08 Mar - 09 PIP + PSP License Holders 132124 PSP Voice and Data Only 768 8 PSP Capacity Resale Only 655 5 Fixed Lines 160,768167,011168,481 210,655 Mobile Subscriptions 6,140,8227,460,0118,554,864 9,801,173 Tele-density 21.325.829.47 32.61 Number of Payphones 37,59552,51556,918 65,669

4. UNECA National Fiber Optic ICT Infrastructure Roll out of Phase II of the National Fiber backbone is underway. The 1542 km fiber shall link towns of Luweero, Kyenjojo, Bushenyi, Lira and Kumi to the Kampala metro Phase III and IV shall link northern Uganda, Western to Phase I and II 4

5. UNECA Private Fiber Optic Infrastructure - UETCL Optic Fiber network over power lines run by UETCL UETCL has obtained a Public Infrastructure Provider and offers transmission links to service providers 5

6. UNECA Wireless Infrastructure and Coverage GSM coverage is close to 100% of the total population GSM Geographic coverage is at 65% 2361 BTS installed country wide 5 GSM cellular operators National Switch capacity of 12.8 million lines 6

7. UNECA Licensing Framework Telecoms market Service Public Service Provider Public voice and data Capacity resale General Licences Infrastructure Private Infrastructure License Public Infrastructure license Combined National Telecoms Operator 7

8. UNECA Key principles of the Licensing Framework The current licensing framework is premised on the following principles; Technology neutrality with Convergence of services Separation between Infrastructure and Service provision Infrastructure is interpreted as “plant, equipment and systems associated with transmission, reception and switching of telecommunications (electronic) signals.” A telecommunications service is taken to be the relaying of messages of any form (voice or data) over communication infrastructure between a sender and a receiver” 8

9. UNECA Growth in Telephone Connections 1o million telephone connections by March 2009 from less than 2 million lines in 2005 Telephone penetration of 32 lines for every 100 inhabitants. Rapid growth in mobile connections is the result of falling connection charges, abolition of monthly rental charges as well as increasing coverage. 9

10. UNECA Public Payphones Deliberate strategic intervention by the UCC to bolster the roll out of public pay phones. It included the establishment of pay phones through the Universal Access Fund as well as incorporating payphone obligations in NTO licenses. Initial policy target was for a payphone for every 1,200 inhabitants. To date there are 65,669 payphones countrywide translating into is a payphone for every 500 inhabitants 10

11. UNECA Broad band Services Limited growth in demand for internet services. Only 2.5 million internet users The slow uptake is the result of; - high connection and bandwidth charges resulting from sole dependence on satellite bandwidth, - Limited infrastructure outside the Kampala metro - Limited local content 11

12. UNECA Broadband services - Contd However there has been significant growth in mobile narrow band internet access. This has been facilitated by the entry of traditional voice carriers in this segment offering CDMA, GPRS and 3G data services To date there are an estimated 300,000 mobile internet connections 12

13. UNECA Service Tariffs Retail tariffs are largely driven by competitive market forces. UCC intervenes in the regulation of wholesale services like wholesale leased lines and termination. Effective September 2009, a new interconnection framework shall come in place. This shall prescribe interconnection principles and procedures as well as interconnection rates. 13

14. UNECA RCDF Universal Service Interventions 14 RCDF Projects implementedNumber of Commissioned Projects Number of Projects under development Internet Points of Presence 715 Internet Cafés 5722 ICT Training centres 8220 District Web Portals 780 Public Pay Phones 2220379 Research projects 41 Postal support projects 1520 Multi Purpose Community Tele-centres (MCTs) 86 School ICT laboratories 1041 Health care ICT facilities 043 Call centres 01

15. UNECA 15 Thank You