Post, Broadcasting and Telecommunications Market ... … · Mobile Market Competitiveness, June 2018 11 The upward trend implies reducing mobile market competitiveness based on mobile

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


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


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%


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


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


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

http://www.price-check.co.ug/









http://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


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


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


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


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


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.


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.


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

Documents

Post, Broadcasting and Telecommunications Market ... … · Mobile Market Competitiveness, June 2018 11 The upward trend implies reducing mobile market competitiveness based on mobile