UCC Targets 4,000 Unlicensed Wi-Fi Operators Over Shs148bn Tax Loss Claim

What the report says

The Uganda Communications Commission (UCC) has said it is targeting about 4,000 unlicensed public Wi-Fi operators, arguing that the businesses are causing an estimated Shs148 billion in annual tax losses and creating risks for telecom infrastructure and consumers. According to the Nile Post report, UCC Executive Director Nyombi Thembo said the commission has already assessed the operators and is pursuing steps to curb internet resale without the required authorisation.

UCC said the operators typically buy high-speed internet from licensed providers and resell it at lower prices without meeting regulatory or tax obligations. The commission also argued that the practice leaves licensed telecom companies at a disadvantage because they must comply with taxes, quality standards and investment requirements. The article said UCC is working with the Uganda Revenue Authority on equipment imports linked to unlicensed operators and may move to identify and seize non-compliant installations through legal procedures.

Beyond tax concerns, UCC raised consumer protection, safety and security issues. It said some hotspots are installed on electricity poles or telecom infrastructure without permission, which can expose workers to danger and interfere with maintenance. The commission also said users may have limited recourse if services fail or if personal data is mishandled.

The report also quoted MTN Uganda chief executive Sylvia Mulinge, who said lower internet prices should be pursued in a way that remains sustainable for network investment. Her comments reflect a broader debate in Uganda’s telecom sector over how to expand affordable access while preserving service quality and infrastructure spending.