The Uganda Communications Commission (UCC) has temporarily suspended enforcement against unlicensed Wi-Fi internet resellers as it explores a new licensing framework that could enable thousands of small-scale operators to formalise their businesses.
UCC Executive Director Ibrahim Bbosa said the decision followed a meeting with representatives of the operators, who have been given an opportunity to engage the regulator on how they can comply with existing telecommunications laws.
The commission estimates that about 4,000 operators are involved in purchasing internet packages intended for private use and reselling connectivity to the public through Wi-Fi hotspots.
Bbosa said the discussions had raised the possibility of introducing a community-based licensing model that would accommodate small operators serving residential buildings, shopping arcades and neighbourhoods.
“One that was most exciting to them was the possibility that maybe we should explore a community-based licensing for their service provision,” Bbosa said.
He noted that a model similar to the one used in the broadcasting sector could provide a basis for developing a licensing arrangement suited to the scale and nature of the businesses.
A multi-stakeholder committee comprising about 14 members, excluding the commission’s secretariat, is expected to examine the available options and recommend a pathway towards compliance.
Any proposals arising from the consultations will be subject to the necessary approval before a new licensing framework can be introduced.
As part of the process, UCC plans to introduce an online registration system to establish the number of operators in the country, their locations and the equipment they use to distribute internet services.
The exercise is expected to give the regulator a clearer picture of the sector and help inform decisions on an appropriate licensing framework.
However, the temporary suspension of enforcement does not grant operators legal permission to continue reselling internet services without the required licences.
Bbosa cautioned that ongoing discussions should not be interpreted as an exemption from existing laws.
“The fact that we are in a negotiation does not give credence. We do not condone an illegality simply because we are in discussion,” he said.
He added that enforcement would remain paused to allow consultations with the operators to proceed.
UCC has raised concerns about the current business model, including potential risks to consumer protection, cybersecurity and tax compliance, as well as unfair competition with licensed internet service providers.
The proposed consultations are intended to establish whether a regulatory arrangement can accommodate small-scale Wi-Fi resellers while ensuring that they meet appropriate legal and operational requirements.
For operators serving buildings, arcades and residential neighbourhoods, a community-based licensing model could provide a route to formalisation if the proposal is approved.
The outcome of the process will determine whether thousands of small-scale internet resellers can obtain authorisation under a framework tailored to their operations, while addressing the regulatory concerns raised by the commission.
Until a new framework is approved and implemented, operators should not assume that the temporary pause in enforcement removes their existing licensing obligations.