The Ugandan government has requested a two-week period 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. ICT Minister Kasule Lumumba told Parliament's Committee on Information and Communications Technology that the ministry needed more time to consult with stakeholders.
The dispute follows a petition by the Kampala City Traders Association (KACITA), which wants Parliament to support a special micro-network service provider licence for hotspot operators. These operators buy internet packages and redistribute connectivity to paying customers. KACITA argues that hotspot operators have extended internet access to underserved communities and created livelihoods, but face closure due to existing licensing requirements and costs.
According to MTN Uganda marketing officer Mackinon Kabarole, hotspot operators are not necessarily illegally tapping into telecommunications networks, but are repurposing internet packages intended for individual or designated business use for commercial resale. However, Lumumba questioned whether all hotspot operators had similar contractual arrangements with telecommunications providers. The committee, chaired by Andrew Ojok Oulanyah, agreed to further engagement.
KACITA chairman Hajji Issa Sekitto said the association took up the matter after receiving complaints from hotspot operators, many of whom are its members. The businesses have filled gaps in internet access by providing affordable connectivity for households, students, and businesses that rely on online research, education, and marketing. KACITA estimates that the sector could involve approximately 40,000 operators.
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 with 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.
The interim understanding was that existing hotspot services could continue during the two-week consultation period, but operators should not take on additional clients as they worked to regularise their businesses. The ministry also wants to establish how hotspot operators fit into the broader digital transformation programme, including the responsibility of licensed telecommunications companies and government agencies to extend internet connectivity to underserved areas.
Key points
- The Ugandan government has sought a two-week period 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 sector could involve approximately 40,000 operators, according to KACITA estimates.
