Liberalisation set to drive Ugandan mobile sector

Mobile penetration in Uganda is expected to reach more than 70% by 2014, up from 39% in 2009, as liberalisation of the sector and increased competition drive growth, according to a report from US-based analyst Pyramid Research.

Although Uganda is one of the smallest markets in the region, it is also one of the fastest growing markets in Africa and the Middle East, according to Sylwia Boguszewska, analyst at Pyramid Research.

In the next five years, Pyramid expects Uganda to experience the second highest percentage increase of mobile subscriptions among the African countries, after Cameroon.

“Mobile penetration rose from just 1.9% at year-end 2002 to an estimated 39% in 2009,” said Boguszewska. “Pyramid expects it will increase further to reach 70.7% penetration by 2014, while the number of mobile subscriptions will exceed 27 million.”

Uganda now has five mobile operators, three of which are well-established: MTN Uganda, Uganda Telecom, and Zain Uganda. They were joined by Warid Telecom, which entered the market in February 2008, and Orange Uganda, which launched in March 2009, according to Boguszewska.

Another mobile operator, Anupam, is due to enter soon, increasing the number of mobile operators to six.

Increased competition is driving down prices, with new entrant Warid being particularly aggressive to attract subscribers, while MTN’s Zone pricing scheme has also attracted customers, Boguszewska said.

“Last year, the three mobile operators – MTN Uganda, UTL, and Zain – commanded 85% of mobile market subscribers, while Warid Telecom, despite its late entry in 2008, managed to gain a significant 15% market share,” she added.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM