The Ugandan government has requested a two-week extension to resolve a dispute over the licensing of local Wi-Fi hotspot operators. The dispute arose after concerns were raised that existing regulatory requirements could force small businesses out of the market and disrupt access to affordable internet. The issue was brought to Parliament's Committee on Information and Communications Technology by the Kampala City Traders Association (KACITA).
KACITA wants Parliament to support a special micro-network service provider licence for hotspot operators who buy internet packages and redistribute connectivity to paying customers. According to KACITA, these operators have extended internet access to underserved communities and created livelihoods, but face closure due to existing licensing requirements and costs that are difficult for small businesses to meet.
ICT Minister Kasule Lumumba told Parliament's Committee on Information and Communications Technology that her ministry needed more time to consult telecommunications companies, internet service providers, regulators, and the petitioners before presenting a comprehensive solution. The committee, chaired by Andrew Ojok Oulanyah, agreed to further engagement, with Lumumba committing to work with stakeholders on a regulatory framework that accommodates small businesses while protecting licensed service providers.
MTN Uganda marketing officer Mackinon Kabarole told the committee that hotspot operators were not necessarily illegally tapping into telecommunications networks but were repurposing internet packages intended for individual or designated business use for commercial resale. He noted that customers who purchase home internet packages and redistribute connectivity to neighbours for a fee breach the terms under which the services were supplied.
However, Lumumba questioned whether all hotspot operators had similar contractual arrangements with telecommunications providers, noting that some had contracts while others did not. KACITA chairman Hajji Issa Sekitto said the association took up the matter after receiving complaints from hotspot operators, many of whom are its members. He argued that the businesses had filled gaps in internet access by providing affordable connectivity for households, students, and businesses.
The committee chairperson, Oulanyah, said the licensing regime was a major point of disagreement, with operators arguing that the cost of obtaining a licence was a barrier to entry. He said the ministry had committed to consult telecommunications companies, internet service providers, and smaller operators to establish a framework that allows the businesses to operate legally without undermining existing providers.
The petition also raised concerns over the importation of networking equipment, including routers and switches, with KACITA reporting that some consignments had been held by the Uganda Revenue Authority (URA). Lumumba said she would engage URA, her technical team, and the Ministry of Finance to clarify the requirements governing equipment imports and approval, warning against disrupting legitimate trade while regulatory questions remained unresolved.
Key points
- The Ugandan government has sought a two-week extension to resolve the Wi-Fi hotspot licensing dispute.
- The dispute centres on existing regulatory requirements that could force small businesses out of the market.
- The government aims to establish a regulatory framework that accommodates small businesses while protecting licensed service providers.
