The proposed committee will assess existing internet resellers and recommend a regulatory framework as the communications regulator pursues operators providing services without licences.
The Kampala City Traders Association (KACITA) and the Uganda Communications Commission (UCC) have agreed to establish a joint committee to recommend how unlicensed internet resellers should be regulated, following tensions over a crackdown on businesses selling internet access without the required licences.
KACITA chairperson Isa Sekitto said the committee would comprise traders in the sector and government representatives, with UCC providing leadership.
The agreement followed a meeting between the two parties to discuss the operations of businesses providing internet services without the required authorisation.
Sekitto said the parties had also agreed to compile an inventory of existing operators to establish the scale of the business before deciding how to regulate it.
“We agreed that we formulate an inventory, and we forced all our members, all of them in that sector, to register, so that we don’t add any more as we aim at regulating the existing ones,” Sekitto said.
He said the registration exercise would help authorities identify operators and determine which businesses could continue operating under a regulatory framework to be developed by the committee.
The process could result in some businesses being allowed to continue, others being required to change their operations, or additional operators being incorporated into a regulated system, he said.
Although he acknowledged that operators needed the appropriate licences, Sekitto urged UCC to allow the proposed committee to develop recommendations before taking further enforcement action.
“It is unfortunate that we had people talking about climbing the trees and removing the routers. This is not fair,” he said, referring to proposed measures targeting internet equipment.
“If you agree and you raise up your hand, nobody should shoot you,” Sekitto added, arguing that operators willing to engage with regulators should be given an opportunity to comply.
UCC has been pursuing approximately 4,000 unlicensed operators who buy internet connectivity from licensed providers and resell it through public Wi-Fi hotspots without authorisation.
The commission has cited concerns about unfair competition, consumer protection, cybersecurity and potential tax losses estimated at Shs148 billion annually.
According to UCC, licensed operators charge about Shs2,000 per gigabyte, while some unlicensed resellers offer the same volume for approximately Shs1,000, creating pricing pressure on licensed businesses.
The regulator has also warned of risks to consumers, including inadequate privacy protections, limited avenues for complaints and redress, and unsafe installations of equipment on utility poles.
UCC has said the practice violates the Uganda Communications Act, 2013, and has proposed licensing options for national companies, community-based operators and individual providers as consultations continue.
Private home Wi-Fi remains exempt from licensing requirements, according to the commission.
The proposed committee is expected to provide a platform for traders and regulators to discuss licensing requirements and recommend how existing operators should be handled.
Meanwhile, Sekitto warned that Uganda could struggle to achieve annual economic growth of 7 per cent if challenges facing businesses persist, arguing that growth could remain below 5 per cent.
He did not provide economic projections or supporting data for the estimates.
Sekitto also expressed concern about business performance in November and December, which he described as critical months when traders typically generate revenue to pay school fees, replenish stock and prepare for the following year.
“If we don’t perform now, don’t think we shall do wonders to come next year,” he said.
He warned that rising operating costs would eventually affect consumers as businesses passed additional expenses on to buyers through higher prices.
“Any cost they put on us, we transfer it to the final user,” Sekitto said.
He said higher prices could force households with limited disposable income to prioritise essential goods and cut spending on other products, further weakening business sales.
Sekitto urged the government to consider the wider economic effects of its regulatory and policy decisions, arguing that the survival of businesses was closely linked to consumers’ purchasing power.