Telecommunication companies in Uganda have the lowest Average Revenue Per User (ARPU) compared to their counterparts in the region, a Deloitte study shows.
The Technology, Media and Telecom (TMT) Predictions 2014: Highlights and context report indicates that while Kenya’s ARPU was $6.2 (Shs15,020) last year and $4.4 (Shs10,660) for Tanzania, Ugandans spent only $3.5 (Shs8,479) on average on airtime.
Airtel has set the stage for increased competition in the mobile money arena following an announcement that the telecom will cut fees on its transactions across all networks.
This comes on the back of increased charges for MTN subscribers. Airtel, which is currently integrating with Warid Telecom, announced that it would starting charging Shs900 to withdraw between Shs5,001-500,000, down from Shs5,000 and Shs2,000 for withdrawing between Shs500,001 and 5 million, down from Shs40,000.
The clock is ticking to the deadline of the Sim Card registration exercise this week on Friday but telecoms companies still want more.
The companies, MTN, Orange, Airtel, Warid, K2 telecom and UTL were on March 1 granted a 180-day extension period to register all their subscribers, a period which has turned out inadequate, pushing them to demand for another grace period.
The Uganda Communication Commission will hold a meeting with telecom executives to discuss, among other things, the increasingly deteriorating service quality, according to Eng Godfrey Mutabazi the UCC Executive Director. The meeting will mainly focus on the failures registered in the mobile money service, ambiguous charges, service interruptions and network failures.
Six companies have lost their telecommunication business licenses in Uganda after failing to launch their services within the required time. The affected firms include; Talk Telecom, Mo Telecom, Mara Telecoms, a subsidiary of the Mara Group, Excellentcom Uganda Limited, Janu Communications Limited and Ace Networks Limited.