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Post, Broadcasting and
Telecommunications Market &
Industry Q2 Report, 2018
Legal Disclaimer
The information and figures contained herein were obtained from licensees’
submissions to the Commission and other sources available to the Commission.
It is intended to provide a communications market overview to the industry,
prospective entrants, government, academia and other stakeholders. We do not
give any kind of warranty and may not be liable for any loss or damage arising
from its use or misuse.
2
Introduction
This is a review of the industry performance and trends, key
developments and challenges for the period April to June 2018. It covers;
1. Global trends in telecommunications sector;
2. Trends in service growth and penetration;
3. Product and pricing movements in the industry;
4. Mobile Financial services (Mobile Money);
5. Internet & Data services
6. The Broadcasting services
7. Postal services.
8. Consumer affairs.
3
Uganda’s communications Sector at a Glance
Sept 17 Dec 17 Mar 18 Jun 18
PIP 23 23 23 22
PSP Voice and Data 33 33 33 31
No of operational TV
stations
33 33 33 33
No of Pay TV service
providers
8 8 8 8
No of FTA service
providers
28 28 28 28
No of license Radio
stations
292 292 292 292
Pay TV
Subscriptions 1,634,067 1,627,594 1,934,452 1,732,038
Fixed Lines
subscription 263,963 262,286 260,447 252,165
Mobile
Subscriptions 24,361,551 24,948,878 24,024,925 21,648,672
Teledensity 65.4 66.9 62.2 56.1
4 Population est: 39,041,200 (UBOS)
Telecommunications Tax Contribution
The figures are based on tax collections from 5 major players from the Telcos.
A cumulative figure of UGX 141.3 billion was realized in telecommunications VAT,
Excise & PAYE in the period April-June 2018 compared to UGX 127.5 billion
realized in the preceding quarter.
The increase (9.7%) in tax collections could be explained by increases in service
usage within the quarter.
5
Source: URA
-
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
50,000,000,000
60,000,000,000
70,000,000,000
80,000,000,000
As of Sept 2017 As of Dec 2017 As of March 2018 As of June 2018
Excise 67,607,063,276 62,793,691,206 65,837,417,564 73,253,596,402
VAT 58,509,996,039 43,239,145,861 53,749,187,967 58,050,629,412
PAYE 8,536,977,753 8,004,379,096 7,919,061,597 9,965,521,533
Re
ve
nu
es
Quarterly trend in Tax revenues
Fixed Subscriptions
3% drop in fixed line
subscriptions registered in
this quarter. A similar
trend is observable in the
three previous quarters.
6
As of Sept 2017 As of Dec 2017 As of March 2018 As of June 2018
263,963
262,286
260,447
252,165
TREND IN FIXED SUBSCRIPTION
Trend in Fixed Line Penetration
7
The graph shows a downward trend in fixed subscription penetration.
This is not surprising as more people have preference for mobile subscription.
7.01 6.96
6.67
6.46
As of Sept 2017 As of Dec 2017 As of March 2018 As of June 2018
FIXED SUBSCRIPT ION PER '000 POPULATION
Mobile Subscriptions, June 2018
Of the 21,648,672 mobile
subscriptions, 99.6% of it is
prepaid.
2,376,253 SIMs were
deactivated in the period
April – June 2018. The drop
could partly be attributed to
continued clean up of
unregistered SIMs in the
different networks and
consequences of service
terminations by smart, K2
and Vodafone. 8
9.9%
As of Sept2017
As of Dec2017
As of March2018
As of June2018
24,361,551
24,948,878
24,024,925
21,648,672
QUARTERLY TREND IN MOBILE SUBSCRIPTION
Mobile Telephone access, June 2018
9
A 5.4% drop in mobile penetration was realized during the quarter. This
is a reflection of the continued cleanup on non registered SIMs which was prevalent in the market. However, this is expected to improve in
the subsequent quarter.
65.4%
66.9%
61.5%
56.1%
As of Sept 2017 As of Dec 2017 As of March 2018 As of June 2018
QUARTERLY TREND IN TELEDENSITY
National Telephony status, June 2018
10
23,993,113
24,625,514
25,211,164
24,285,372
21,900,837
As of June 2017 As of Sept 2017 As of Dec 2017 As of March 2018 As of June 2018
National Telephony, June 2018
Fixed+Mobile Subs
Mobile Market Competitiveness, June 2018
11
The upward trend implies reducing mobile market competitiveness
based on mobile subscriptions. This could partly be explained by the reduced number of players in the market following the ceased in
services by K2, SMART, VODAFONE.
4003.9
3936.3 3942.0
4477.1
3600
3700
3800
3900
4000
4100
4200
4300
4400
4500
4600
Sep-17 Dec-17 Mar-18 Jun-18
Herfindahl Hirshchman Index (HHI)
On-net & Off-net traffics
12
Uganda is largely an on-net market based because of voice bundle offering.
Sept 2017 Dec 2017 March 2018 June 2018
6,985,029,573 7,449,275,094
11,293,092,924 11,775,613,813
185,094,465 167,134,855 256,983,526 152,327,575
On net traffic (voice) Off net traffic (voice)
International traffic
13
3Q17 4Q17 1Q18 2Q18
117,391,241 122,751,990
104,792,316
97,456,854
53,769,147 50,187,102
40,779,947 40,561,836
International Traffic, June 2018
International traffic (voice incomming to mobile) International traffic (voice outgoing)
Roaming Minutes
For the last three quarters, the
roaming traffics had been in a
downwards trend. For this quarter,
roaming by foreign networks
dropped from 9,048,134 minutes
to 8,157,295 minutes and roaming
in foreign networks dropped from
17,367,279 minutes to 11,786,908
minutes.
This translates to a respective
9.8% and 32% drop in roaming
minutes.
These drops could partly be
explained by increased
consumption of OTT services.
14
Sept 2017 Dec 2017 March 2018 June 2018
17,276,576
20,844,138
17,367,279
11,786,908 13,040,778 12,488,448
9,048,134 8,157,295
Roaming traffic, June 2018
Roaming in foreign networks
Roaming by foreign networks
Trend in SMS traffic
15
The on-net sms traffic continues to dominate the
sms market (98.8%).
The higher traffic of incoming international sms is
due to global sources terminating in Uganda.
-
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
SEPT 2017 DEC 2017 MARCH 2018
JUNE 2018
1,557,364,152
1,444,287,250
2,303,754,072
1,954,813,351
20,972,939 21,469,994 18,315,326 14,486,729
Out going SMS On net Out going SMS Off net
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
Sept 2017 Dec 2017 March 2018 June 2018
3,695,974 3,691,904
2,266,151 2,394,493
16,309,013
12,588,164
7,672,876 8,056,345
International Outgoing SMS Incoming International SMS
Tariffs Mobile plans are available on the two UCC accredited
price comparison websites;
1. www.price-check.co.ug
2. www.kompare.ug
Mobile Money Services
17
Comparative Mobile Money statistics
18
The higher number of mobile money subscription than the number of mobile subscription is due to the fact that a mobile money subscription shall remained counted as registered for the service even when such number has been deactivated from the network provided there
is balance on such account.
Source: BOU
Sept 2017 Dec 2017 March 2018 June 2018
23,726,352
23,362,532
22,683,746 22,733,823
24,361,551
24,948,878
24,024,925
21,648,672
MOBILE MONEY SUBSCRIPTION VS MOBILE SUBSCRIPTION
Number of Mobile money subscription
Number of Mobile subscription
Sept 2017 Dec 2017 March 2018 June 2018
151,644
160,351
163,082
166,194
MOBILE MONEY AGENTS
No of mobile money agents
Mobile Money Transactions
Positive growth has been registered in all the three business dimensions
above. The number of transactions grew by 5.1%, the value of transaction
grew by 2.6% and the balance on customer accounts grew by 8.8%.
19
Source: BOU
Sept 2017 Dec 2017 March 2018 June 2018
Number of
Transactions 305,757,311 340,591,373 340,783,906 358,272,314
Value of
Transactions 16,748,857,697,159 18,136,115,656,548 18,848,872,284,952 19,347,889,204,239
Balance on customer
accounts 418,978,104,604 511,885,255,712 455,966,442,347 495,977,449,459
Communications Infrastructure.
The number of Base
Transceiver Stations (BTSs)
unchanged during the
quarter at 4,425.
The number of PIPs and
PSPs (voice and data)
dropped from 23 22 and 33
to 31 respectively.
The Bandwidth
21
By the end of June
2018, the Total
bandwidth had risen
to 96,890.8 mbps,
resulting to increase
in Bandwidth per
million inhabitants
by 13%.
Sept2017
Dec2017
March2018
June2018
Total Bandwidth (Mbps) 68,360.1 75,879.7 85,744.0 96,890.8
Bandwidth per I millioninhabitants (mbps)
1,814.5 2,014.1 2,196.2 2,481.8
-
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
-
20,000.0
40,000.0
60,000.0
80,000.0
100,000.0
120,000.0
TO
TA
L B
AN
DW
ITH
(M
BP
S)
22
Internet Subscriptions and use
23
9,637,568 10,028,847
10,420,126
9,855,034
162,850 167,700 172,550 173,600
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
Sept 2017 Dec 2017 March 2018 June 2018
Internet subscription (Mobile) Internet subscription (Fixed)
The mobile internet subscriptions dropped to 9,855.034 million while the fixed internet subscriptions grew to
173,600 by the end of June 2018.
The estimated internet users dropped slightly to 18,502,166 from the19.1 million as estimated in the
previous quarter. The internet penetration now stand 47.4%.
18,148,923
18,825,254
19,134,518
18,502,166
Sept 2017 Dec 2017 March 2018 June 2018
ESTIMATED INTERNET USERS
BROADCASTING
24
PAY TVs, MODE OF BROADCASTING & GEOGRAPHICAL COVERAGE
25
Trend in Pay TV subscriptions
26
Subscriptions are expected to grow in the subsequent quarters due to
the world cup season.
June 2017 Sept 2017 Dec 2017 March 2018 Est. June 2018
1,614,404 1,544,615
1,627,594
1,934,452
1,732,038
PAY TV SUBSCRIPTIONS
POST & COURIER SERVICES
27
Postal & Courier Access
28
Indicator Sept 17 Dec 2017 March 2018 June 2018
Number of
Permanent Post Offices
334 334 334 334
Number of
Permanent Post Offices connected to the
internet
49 33 33 33
Post Offices
offering public internet services
32 25 25 25
Private letter
boxes
82,900 82,900 82,900 82,900
Courier Access
points
858 867 867 867
Postal distribution in Uganda
29
Quarterly Postal Mail Volumes
30
44
,46
0
67
,24
6
31
,50
9 4
3,5
71
32
,58
4
47
,04
5
21
,98
7
30
,43
5
2,5
89
6,8
26
1,9
24
2,5
74
S E P T 2017 D E C 2017 MAR C H 2018 JU N E 2018
Domestic Ordinary Letter Posted Domestic Express Mail Services (DEMS) Domestic Registered Letter
Letter traffics
Letter category Sept 2017 Dec 2017 March 2018 June 2018
East African Letter post Incoming
6,096
6,781
29,729 4,343
Outgoing
701
1,489
3,307 2,014
European Letter post Incoming
41,416
65,464
48,478 41,455
Outgoing
60,178
111,014 51,112 38,448
Rest of Africa Letter Post
Traffic Incoming
4,791
6,070
7,088 3,045
Outgoing
1,750
1,076
2,704 1,711
America Letter Post Traffic Incoming
15,836
20,431
36,164 17,743
Outgoing
12,610
25,797
34,080 17,154
Rest of World Letter Post
Traffic Incoming
14,351
30,973
52,615 37,548
Outgoing
10,284
27,039
22,377 22,974 31
Consumer Affairs Consumers of communication
services when dissatisfied with a service are required to first lodge
complaints with their respective
service providers. Where a
consumer remains dissatisfied,
they can then lodge complaints with UCC, at which point it
becomes a second level complaint.
The data used in this report
represent second level complaints
to UCC. However, the figures may include some first level
complaints from consumers who
claim inability to access their
service providers.
4th QUARTER (October-December 2017)
Quality of service
Operators are expected to resolve 90% of all complaints
received within a 24-hour period.
The data analyzed included tickets for inquiries, queries and
complaints.
The ticket items include feedback provided to customers
within a call session of a customer calling the call center. The
feedback includes guidance, advise, information and actual
complaint resolution given to a complainant. It is noted that
in several instances a resolution to a complaint may be
reached after several customer calls.
33
Trend in number of complaints
34
The number of complaints received in the quarter under review is
relatively low as shown in the above chart.
Sept 2017 Dec 2017 March 2018 June 2018
35
152
53
39
32
139
48
34
3
13
5 5
Complains received Complains resolved Complains Pending
Trends in mode of delivery of complaints
35
Over time, the consumers’ most preferred mode of complaint delivery is
through phone calls, followed by emails and least by walk-in. This confirms the level of appreciation of IT services.
Sept 2017 Dec 2017 March 2018 June 2018
42.9
40
49
46.1
40
30 30.2 30.7
11.4
15
20.8
23.2
Phone calls Emails Walk-in clients
Chart showing the resolved and pending complaints
as per the period reviewed.
36
87.2% of the
complaints received were
resolved.
[CATEGORY NAME] 87.2%
12.8%
RESOLVED PENDING
Types of complaints received, resolved and pending
37
The most dominant form of complaints received was SIM card registration as
was the case in the previous quarter. The complaints which remained largely
unresolved are Poor networks, illegal broadcasting and content.
0
2
4
6
8
10
12
RECEIVED RESOLVED PENDING
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