Faculty Guide: Khusbu Sadhwani Mem

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Partial Submission of Global Country Study (2830003) Semester-3

Country Selected: Uganda College Code: College Name: Patel Group of Institutions, MBA Department

Student Information:

Student Name 1.Mistri Piyush.M 2.Patel Ravi.V 3.Patel Dhirendra.G 4.Goswami Jaimin.R

Student Enrollment Number 108030592010 108030592115 108030592121 108030592089

Faculty Guide: Khusbu Sadhwani mem

Facults E-mail:

Facultys Contact number :( M )

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Telecom Sector of Uganda


The introduction of mobile telephony has revolutionised Ugandas telecommunications industry since Celtel/Zain (now Bharti Airtel) launched the first network in 1995, followed by MTN in 1998, Uganda Telecom in 2001, and Warid Telecom in 2008 and HiTS Telecom, in which France Telecoms mobile unit Orange bought a majority stake in 2009. The intensified competition led to an unsustainable price war which has accelerated subscriber growth but also the fall of average revenue per user (ARPU). However, with market penetration still well below the African average, hundreds of millions of US dollars are being invested into new infrastructure. The operators started to increase their tariffs again in 2011 and at the same time are trying to find ways of generating additional revenue streams. Mobile data and 3G broadband services as well as mobile money transfer and m-banking services are at the forefront of this development in a country where less than 20% of the population currently has Internet access or holds bank accounts.

Recent noteworthy developments in Uganda's telecoms sector include the news in October that Uganda's telecoms regulator the Uganda Communication Commission (UCC) announced that it would delay the launch of mobile number portability (MNP) until it could find a suitable model. The UCC's director of technology and licensing, Patrick Mwesigwa, said that, after evaluating MNP's impact in Kenya and South Africa, it has proved to be too expensive considering its benefits.

Uganda is one of the fastest and most consistently growing economies in Africa. Fibre, mobile broadband and mobile banking are revolutionising the countrys telecom sector, according to Research & Markets. Ugandas first mobile network was launched in 1995 by Celtel/Zain (now Bharti Airtel), and was followed by MTN in 1998, Uganda Telecom in 2001, Warid Telecom in 2008 and HiTS Telecom, in which France Telecom's mobile unit Orange bought a majority stake in 2009.

The intensified competition has led to a price war which has accelerated subscriber growth, but has also led to the fall of average revenue per user (ARPU). However, with market penetration still well below the African average, hundreds of millions of US dollars are being invested into new infrastructure. The operators started to increase their tariffs again in 2011 and at the same time are trying to find ways of generating additional revenue streams. Mobile data and 3G broadband services as well as mobile money transfer and m-banking services are at the forefront of this development in a country where less than 20% of the population currently has Internet access or holds bank accounts. A simplified and converged licensing regime has significantly reduced barriers to market entry and increased competition. MTN also competes with Uganda Telecom in the fixed-line market. Penetration is low in this sector but has seen a renaissance recently on the back of wireless local loop (WLL) network rollouts, prepaid services and an increasing demand for broadband access. 3% of fixed lines are using fibre for the last mile.

Being landlocked, the country depended entirely on satellites for its international Internet connectivity until 2009 when several international submarine fibre optic cables landed on the African east coast, to which Uganda is now connected via a national fibre backbone extending to its borders. By 2010, prices for international bandwidth had plummeted to a fraction of their original cost. In parallel, wireless technologies such as WiMAX and 3G mobile services have brought the Internet within reach of a much wider part of the population than the limited fixedline DSL services ever have. These improvements in infrastructure will revolutionise the market by making broadband access more affordable and enabling converged voice, data and video/entertainment services. With GDP growth forecast to remain stable at around 7% per annum until at least 2016, growth prospects for Uganda's telecoms sector are excellent.

Companies covered in Uganda Telecom services:-MTN, Bharti Airtel, Uganda Telecom (UTL), Warid Telecom, Orange (HiTS Telecom),I-Tel, Simba Telecoms.

Internet Service Providers: 1. Dial-up Internet Access 2. Dedicated Connections 3. VSAT

Providers of Value-Added Services:As the Ugandan telecommunications sector develops and matures, several different types of middlemen have arose to facilitate the delivery of, and add value to, the core services provided by the main operators. These are the distributors, marketers, franchisees, etc. that all play a role in extending services beyond the reach of the operators networks. These are important and exciting areas of entrepreneurial activity Phone Providers: Phone Stores: Phone Shops: Street Vendors:

Service Provider in Uganda: Voice Telephony Fixed-Line -Landline Services: -Fixed Wireless: Mobile Cellular

Data: Fixed Line Landline Services Fixed Wireless

Value Added Services:-

Payphones Phone Sharing Computer Sharing FM Radio Solutions and Add-ons

Conclusion
It has been established that Communication is a key factor in any development process. In light of the catalytic role that communication plays in National development, the Government has set up a policy frame work to ensure optimum utilization of this resource for the attainment of social economic development goals. For Government to implement the long term national development programmes, especially the National Develop Plan (NDP 2010), reliable means of communication must be available at all levels of implementation. Developments in information and communications technology (ICT) have dramatically changed the way information is transmitted and disseminated thus making communication one of the most powerful tools for modernization and development.

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