KAMPALA,Uganda (UGNEWSLINE) – Uganda is considering a new regulatory framework for community Wi-Fi operators as the government seeks to balance affordable internet access with telecommunications licensing requirements, amid fears that a crackdown could disrupt thousands of small businesses and livelihoods.
The debate has moved to Parliament, where traders and internet hotspot operators are pushing for affordable licensing arrangements that would allow them to continue selling internet services without facing the financial and administrative requirements imposed on major telecommunications companies.
The Kampala Capital City Traders Association (KACITA), which estimates that about 40,000 operators could be affected by the enforcement campaign, says the businesses have become an important source of affordable internet for students, households and small enterprises.
The association presented its concerns to Parliament’s Committee on Information, Communication Technology and National Guidance on October 28, warning that the crackdown by the Uganda Communications Commission (UCC), including arrests and confiscation of equipment, threatens businesses and the wider digital economy.
KACITA’s ICT director, Disan Kayima, told legislators that the enforcement measures had also affected suppliers of networking equipment, with some consignments of routers and switches reportedly held by the Uganda Revenue Authority.
He urged Parliament to support a licensing arrangement that reflects the financial capacity of small operators, proposing that fees should not exceed Shs3 million, citing Kenya’s regulatory approach as a possible reference.
The association argues that community Wi-Fi businesses have helped bridge connectivity gaps by allowing customers to purchase internet access in smaller and more affordable quantities instead of subscribing to expensive individual packages.
However, the regulator maintains that the growing practice of purchasing internet packages intended for private or designated business use and reselling connectivity commercially raises legal, consumer protection and fair competition concerns.
The UCC has also raised concerns about unauthorised networking equipment installations, customer identification, cybersecurity and the use of telecommunications infrastructure without permission.
In response to the dispute, the government has proposed further consultations to establish a licensing system that accommodates smaller operators while protecting established internet service providers.
ICT and National Guidance Minister Justine Kasule Lumumba requested two weeks to conclude consultations with telecommunications companies, internet service providers, regulators and affected traders before presenting a way forward.
She also called for a temporary halt to arrests and confiscation of equipment during the consultation period, saying stakeholders needed an opportunity to resolve the outstanding issues.
The Deputy Minister of ICT, Yorke Alioni, outlined proposed national and regional licensing categories, which would require operators to establish incorporated companies, pay a US$2,500 registration fee and meet annual licensing charges of US$2,000 for national suppliers and US$1,200 for regional suppliers.
The proposals have raised questions about whether smaller community operators can afford to formalise their businesses under the suggested arrangements.
Parliament’s ICT committee chairperson, Andrew Ojok, said legislators wanted to understand the specific requirements operators would have to meet to become compliant, stressing the need for clear and achievable regulations.
The discussions follow UCC’s October enforcement campaign against unlicensed public Wi-Fi providers, which prompted complaints from traders over equipment seizures and the financial implications of existing licensing requirements.
The commission has previously explored the possibility of community-based licences that would allow operators serving limited geographical areas, such as residential neighbourhoods and shopping arcades, to provide internet services legally.
For Uganda, the outcome could have wider implications for the country’s digital economy, particularly among young entrepreneurs and small businesses that depend on affordable connectivity to conduct their activities.
The challenge facing policymakers is to establish rules that protect consumers, generate government revenue and ensure fair competition without shutting out smaller players who have increasingly become part of the country’s internet distribution network.
