The Forum for Democratic Change (FDC) has urged the government to introduce affordable licensing for community Wi-Fi businesses rather than shut them down, opposing a planned crackdown by the Uganda Communications Commission (UCC) on unlicensed internet resellers.
Robert Centenary, the party’s vice chairperson, said young entrepreneurs had established small Wi-Fi businesses to bring affordable internet access closer to communities underserved by major telecommunications companies.
Last week, UCC announced plans to dismantle approximately 4,000 unlicensed public Wi-Fi hotspots across the country, citing estimated annual tax revenue losses of Shs148 billion.
UCC Executive Director Nyombi Thembo said the commission had completed an assessment of the operators and was preparing a nationwide enforcement exercise targeting businesses that resell internet services without the required licences.
“These operators are not providing affordable internet; this is an economic crime,” Thembo said.
However, Centenary argued that community Wi-Fi resellers play an important role in connecting students, small traders and low-income earners who might otherwise struggle to afford internet services.
“Government should provide internet, not punish those providing it,” he said in a statement.
The opposition party wants UCC to establish a simple, affordable and transparent licensing framework that would enable small operators to formalise their businesses while continuing to serve their communities.
“Formalise, do not criminalise,” Centenary said during a press briefing in Kampala.
UCC maintains that unlicensed operators purchase high-speed internet from licensed providers and resell it without the necessary authorisation or payment of applicable taxes, undermining regulatory compliance and government revenue.
According to the commission, licensed operators charge an average of Shs2,000 per gigabyte, inclusive of taxes and other costs, while unlicensed resellers charge approximately Shs1,000 for the same volume.
Centenary criticised the government and telecommunications companies for imposing licensing requirements, fees and commercial conditions that he said could push small operators out of business instead of supporting their growth.
He cited Kenya as an example of a country where Wi-Fi reselling has been formalised, arguing that Uganda could adopt a similar approach to support small businesses, create employment and expand internet access.
The party also called on telecommunications companies to review their commercial arrangements with small resellers to ensure that contractual terms do not unfairly undermine competition.
Centenary said affordable internet access was essential for education, healthcare, communication, business operations and access to government services.
He added that community Wi-Fi networks were helping students, farmers, boda boda riders, market vendors and small-business owners participate in the digital economy.
FDC called on the government to lower internet costs and support young people establishing digital businesses, arguing that affordable connectivity could generate employment and widen access to online services.
The dispute highlights the challenge facing regulators as they seek to enforce licensing and tax requirements while preserving affordable internet access for underserved communities.
While UCC argues that enforcement is necessary to protect government revenue and ensure compliance among internet service providers, FDC maintains that affordable licensing would allow small businesses to meet regulatory requirements without losing their livelihoods.
The outcome could have implications for internet affordability, youth entrepreneurship and competition in Uganda’s telecommunications sector.