The Uganda Communications Commission (UCC) has tightened compliance requirements for Wi-Fi hotspot operators, insisting that businesses reselling internet services must obtain appropriate licences and stop using home internet packages for commercial resale.
UCC executive director Nyombi Thembo said the commission would introduce a registration system to distinguish home internet users from commercial operators, as it seeks to curb unlicensed telecommunications services and address unfair competition in the sector.
The measures follow the expiry on October 19 of a seven-day deadline for unlicensed operators to voluntarily stop providing telecommunications services.
Thembo announced the measures after a third meeting with Wi-Fi and hotspot operators affiliated with the Kampala City Traders Association (KACITA), the National Entrepreneurs and Traders Association (NETA) and other individuals involved in the business.
He said operators must comply with mandatory licensing requirements, including obtaining community licences where applicable under the law.
“Offering telecommunications services without a valid licence is untenable,” Thembo said, adding that licensing was necessary to formalise businesses, promote sustainability and ensure fair competition.
The commission will also introduce service categories to distinguish home internet packages from commercial resale arrangements, with the aim of ensuring that costs are fairly distributed among wholesale suppliers, intermediaries and downstream operators.
According to Thembo, a registration link will be created to help identify operators’ service categories, package types, costs and applicable registration requirements.
The crackdown targets operators who purchase home internet packages and resell connectivity to neighbours and other customers for profit, a practice UCC says can distort market prices and compromise network quality.
Thembo said commercial resale of home internet packages undermines fair competition and creates an uneven playing field for licensed telecommunications businesses that invest in network infrastructure and comply with regulatory requirements.
He said the commission would also require operators to adhere to fair-usage policies, declare taxes and protect network integrity.
The measures, he added, are intended to protect consumers, secure data, combat cyber threats and ensure that businesses in the digital economy operate within the law.
To improve engagement with operators, UCC will establish a joint industry committee comprising representatives of the commission, relevant government agencies, security agencies and seven hotspot operators.
The committee will provide a platform for addressing operational challenges, improving communication and resolving disputes between regulators and businesses.
“We are regulators with a human face who understand the drive required to build a business, but compliance is non-negotiable,” Thembo said.
The commission said the new framework seeks to balance consumer interests and affordable internet access with the need to protect infrastructure investments and ensure that operators meet their tax and licensing obligations.
However, the announcement did not specify how many operators had complied with the October 19 deadline, how many remained unlicensed or what enforcement measures would be taken against businesses continuing to operate illegally.
UCC’s engagement with hotspot operators comes as internet resellers serve customers who may find commercial internet packages expensive or inaccessible. The proposed licensing and service categorisation system is expected to clarify the requirements for businesses operating at different levels of the internet distribution chain.
The commission has said unlicensed operators must stop providing telecommunications services, while those seeking to continue operating must meet the applicable licensing and regulatory requirements.