Uganda Communications Commission will re-establish the operating licence of the local unit of South African telecom company MTN Group. The re-establishment comes with “new stringent terms.”
MTN Uganda is the largest telecom company in Uganda, with 11.2 million subscribers. It was launched in Uganda in 1998 after obtaining a 20-year operating license which was due to expire this year.
UCC has been assessing the application for a ten-year extension of MTN’s licence since last year and last month the regulator was asking MTN to agree to list its shares on the local stock exchange as a condition for the renewal. MTN was not immediately available to comment.
Uganda’s telecoms sector has developed rapidly over the last years, but analysts say a new tax on social media use could solve some of those gains by threatening prospects for fresh investment in the sector.