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UCC Launches Study to Enhance Competition in Uganda’s Telecommunications Market

October 25, 2024
3 min read
Author: Aayushya Ranjan

Uganda Communications Commission (UCC) has commissioned a telecommunication market definition and assessment study to enhance competitiveness in the industry and establish possible barriers to competition so as to foster a better business environment.

During a stakeholder engagement meeting organised by UCC at its head office in Bugolobi on Tuesday, telecommunication operators were introduced to the team of consultants who will undertake this assignment.

Tilil Technologies Limited and Acacia Economics (PTY) Limited, a joint consultancy, will conduct the telecommunications market definition and market power assessment whose key objective is to examine and evaluate competition in the industry, as well as identify market participants, their services and products.

World over, regulators engage in studies to inform regulatory interventions, including enhancement of competitiveness in the industry and to establish barriers to competition so as to promote a better business environment. The idea is to minimise non-competitive practices, which potentially lead to higher prices and reduced choices.

The consultants led by Ms Shaista Goga presented to operators a framework and roadmap for implementing the data collection exercise. She observed that the market has changed considerably, with enhanced digitalization and many newer technologies. She further explained that the study is proactive and not reactive, meaning that it is not addressing any specific complaints.

The consultants are seeking to understand the market and through that establish what can be done to enhance competitiveness. The study will cover all critical elements of telecommunication, including fixed lines, mobile, broadband internet, tower markets, and other related services.

The consultants will also seek to identify the various products and services available in the telecommunications market and to understand barriers to entry and expansion. They will further analyse substitutes for products and services in the market, including alternative technologies and services.

Having looked at market share, market barriers, and other competitive dynamics in the market, the consultants will be able to establish if certain companies have overly significant market power, and how competition can be upheld.

Among other functions outlined in the Uganda Communications Act 2013, UCC is obliged to encourage and enable competition in the communications sector through regulation and licensing of competitive operators to achieve competitively priced and high-quality services.

To achieve this, UCC needs to be fully aware and cognizant of market features, including the level of competition, the different sub-markets therein, the dominance of some players and the potential of such players to abuse their dominance, among other factors.

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