The figures from the last quarter of 2022 revealed a 3% growth in subscriptions, indicating a continuous upward trend throughout the year, according to the Uganda Communications Commission quarterly market performance report.
KAMPALA, UGANDA | NOW THEN DIGITAL — In 2022, Uganda witnessed a remarkable surge in its connectivity scorecard, with both fixed and mobile subscriptions reaching a staggering 33.2 million by the year’s end. Of these, 33.1 million were mobile subscriptions, while 117,000 were fixed subscriptions.
The latest figures from the fourth quarter of 2022 indicate a 3% growth in subscriptions, showcasing a consistent upward trend throughout the year. These findings were reported in the Uganda Communications Commission’s quarterly market performance report.
Mobile Subscriptions: A Significant Increase
Over the course of 12 months ending in December 2022, the industry experienced a net addition of 2.9 million new mobile subscriptions, marking a substantial 10% increase.
As a result, the national tele density for mobile subscriptions has reached an impressive 77 lines for every 100 Ugandans, regardless of age.
Rapid Expansion of Internet Subscriptions
Total internet subscriptions surpassed the 25 million milestone, with a net addition of 1.3 million subscriptions in the fourth quarter of 2022. This quarter also saw the highest quarter-on-quarter addition in subscriptions throughout the year.
The growth in internet subscriptions can be attributed to the enticing internet packages and value propositions offered by various Internet Service Providers during the end-of-year festivities. Comparing year-on-year data, Uganda recorded an additional 1.8 million new internet connections, resulting in a national penetration rate of 60%.
Internet Traffic and Data Consumption
In terms of internet traffic, the fourth quarter of 2022 witnessed a substantial use of 129.3 million GBs, surpassing the previous quarter by 5.8 million GBs. This growth can be attributed to the promotional pricing and product offerings associated with the festive season in both fixed and mobile internet segments.
Notably, since 2020, internet traffic has doubled, with mobile data contributing over 94% of the total data traffic. By the end of December 2022, fixed internet traffic reached a total of 30 million GBs, compared to 14.1 million GBs at the end of December 2020.
In terms of mobile data, the industry recorded a total of 421.5 million GBs in 2022, twice the amount recorded in 2020. These figures demonstrate the crucial role data plays in driving the sector forward.
Mobile Money Services on the Rise
During the quarter under review, the market witnessed 1.4 billion mobile money transactions, indicating a 4% growth. This trend can be attributed to the increasing adoption of cashless payment methods, particularly person-to-business and person-to-person mobile money services.
Comparing the quarter ending in December 2021, the industry experienced a net growth of 182 million transaction counts, representing a significant 15% jump between December 2021 and December 2022.
The number of registered mobile money subscriptions reached 36.8 million at the end of December 2022, highlighting the ongoing role of digital financial services in promoting financial inclusion in Uganda. This 4% growth in subscriptions compared to the preceding quarter further reinforces the importance of mobile money services.
Network Devices and Smartphone Adoption
Uganda’s network-connected devices kept pace with subscriptions, with over 900,000 terminals added in the fourth quarter of 2022. As of December 2022, the total number of devices on Uganda’s networks reached 38.1 million.
This growth is primarily driven by the increasing adoption of smartphones, with 770,000 new smart terminals across the networks. Remarkably, 95% of the terminals in Uganda’s telecom industry can access the internet, indicating a shift in consumer behavior towards advanced and feature-rich smartphones that offer internet connectivity advantages.
Furthermore, the share of internet-enabled gadgets grew by 18% compared to basic gadgets, which experienced a 43% drop since December 2021.
Acquisition of Uganda Telecom Limited and Space Program Milestone
Uganda Telecom Limited, facing financial troubles, was acquired by a new entity known as Uganda Telecommunications Corporation Limited in a deal worth Shs 316 billion.
This acquisition has provided UTCL with a portfolio of over 400 tower sites and an existing customer base, allowing them to introduce a range of fixed and mobile voice and data services as new value propositions.
Additionally, Uganda achieved a significant milestone in its space program by successfully launching its first satellite, PearlAfricaSat-1, into low earth orbit.
The satellite’s primary mission is to provide crucial research and observation data for weather forecasting, land and water bodies monitoring, mineral mapping, agriculture monitoring, disaster prevention, infrastructure planning, and border security.
Broadcasting, Postal, and Courier Sectors
The last quarter of 2022 marked the completion of the radio licensing process, with 218 radio broadcasters approved during the three-month period ending in December 2022. This licensing exercise aimed to ensure efficient and effective use of the radio frequency spectrum while promoting compliance with broadcasting standards.
On the postal and courier front, domestic mail volumes increased to 182,370 in the fourth quarter, reflecting a 5% quarter-on-quarter growth. This growth can be attributed to new licensees entering the courier market to meet the increased demand for door-to-door delivery by domestic e-commerce businesses.
Total #Internet subscriptions crossed the 25 million mark in December 2022, while mobile subscriptions rose to 33.2 million, according to the recently released @UCC_Official market performance report.
For details, go to: https://t.co/1umMPFGuz3 pic.twitter.com/BgRu6ltkuW
— UCC (@UCC_Official) June 13, 2023
Elon Musk’s Acquisition of Twitter
Tech billionaire Elon Musk, CEO of Tesla, acquired the social media giant Twitter for a staggering USD 44 billion. The acquisition, delayed by disagreements with former executives, followed allegations of inflated subscription counts due to spam or fake accounts.
With Twitter boasting a follower count of 134.7 million, this acquisition marked the second-highest in the tech industry in 2022, following Microsoft’s acquisition of Activision Blizzard for USD 68.7 billion in the first quarter.
These developments in Uganda’s connectivity landscape and the broader tech industry illustrate the country’s progress and potential for further growth in the digital space.
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