USD100 million for 12 years: UCC extends MTN Uganda’s License Soon after getting new license, MTN Uganda promises a bold digital life to all its customers driven by diligent innovations, high quality voice, data and mobile money services across all the 135 districts of Uganda.

After fulfilling all requirements for the extension of the Second National Operator License Agreement, MTN Uganda has been granted an extension of 12 years by the Uganda Communications Commission (UCC), effective July 1, 2020.

In a statement, the Commission says: “Having conducted a performance assessment of MTN Uganda operations over the last 20 years, the Commission came to the conclusion that MTN Uganda has substantially complied with its financial and legal obligations, as well as most of the technical obligations.

“Accordingly, the Government, through the Commission, and MTN Uganda, have been engaged in discussions over a license extension, which culminated in this breakthrough,” said the UCC statement.

UCC Executive Director Irene Sewankambo signed on Uganda’s behalf.

MTN has said that it has paid US$100m (UGX371.5 billion) as license fees for the 12 years.

In a statement, MTN Uganda said “This brings to an end the long-standing negotiations between MTN Uganda, the Uganda Communications Commission (UCC) and the government. This license renewal comes almost 2 years later since MTN Uganda applied for a license renewal following the expiry of their 20-year license in October 2018”.

Speaking at the license signing ceremony, the MTN Uganda Chief Executive Officer, Wim Vanhelleputte said that:

“I am glad to inform you that our second National Operator License has been signed and MTN can continue operating in Uganda. We are happy and  remains committed to our  vision of delivering a bold digital life to all our customers through diligent innovations and shall continue to provide high quality voice, data and mobile money services connecting Ugandans across all the 135 districts of Uganda.

MTN Uganda provides telecommunications services under a Second National Operator License for the operation of a telecommunications system issued on 15 April 1998 for a period of twenty years. The License expired on 21 October 2018 but was variously extended to accommodate conclusion of renewal negotiations which have been ongoing for close to 2years.

Speaking at the license signing ceremony, the MTN Uganda Chief Executive Officer, Wim Vanhelleputte said that:

“I am glad to inform you that our second National Operator License has been signed and MTN can continue operating in Uganda. We are happy and  remains committed to our  vision of delivering a bold digital life to all our customers through diligent innovations and shall continue to provide high quality voice, data and mobile money services connecting Ugandans across all the 135 districts of Uganda.

MTN Uganda provides telecommunications services under a Second National Operator License for the operation of a telecommunications system issued on 15 April 1998 for a period of twenty years. The License expired on 21 October 2018 but was variously extended to accommodate conclusion of renewal negotiations which have been ongoing for close to 2years.

Speaking at the license signing ceremony, the MTN Uganda Chief Executive Officer, Wim Vanhelleputte said:

“I am glad to inform you that our second National Operator License has been signed and MTN can continue operating in Uganda. We are happy and remains committed to our vision of delivering a bold digital life to all our customers through diligent innovations and shall continue to provide high-quality voice, data and mobile money services connecting Ugandans across all the 135 districts of Uganda.

MTN Uganda has been providing telecommunications services under a Second National Operator License for the operation of a telecommunications system issued on 15 April 1998 for a period of twenty years. The License expired on 21 October 2018 but was variously extended to accommodate conclusion of renewal negotiations which have been ongoing for close to 2years.

One of the major conditions for MTN Uganda’s license renewal and for other similar National Operator license holders is to have at least 20% of its shares listed on the Uganda Securities Exchange (USE), giving a chance for Ugandans to own part of MTN’s success through buying some shares in the company.

Summary of other terms and conditions

• The licensee shall ensure that its network extends to, and services are available in at least 90% of the geographical boundary of Uganda within five (5) years from the effective date of the license.
• The licensee shall not deny access for licensed services to any subscriber except for non-payment of fees or for any other just cause.
• The Licensee shall ensure that its services meet the Licensor’s Quality of Service standards and other standards as the Licensor shall determine from time to time.
• The Licensee shall comply with all the Laws, Regulations, Guidelines and Standards Issued by the Government of Uganda on health, safety and environment protection.
• The Licensee shall provide services adaptable to persons with disabilities across its network.
• The Licensee shall ensure that its equipment, facilities or systems do not damage, interfere or in any way harm the installations, facilities or operations of other Licensees.
• The Licensee shall ensure and maintain the confidentiality of all communications that it may obtain in the course of providing a service to a customer or interconnecting to a public network or in the execution of its business.
• The Licensee shall interconnect its system(s) with national, public or private telecommunication systems or other licensed operators to deliver locally originated traffic through interconnection agreements, which shall be approved by the Licensor.
• The Licensee shall provide national roaming services to requesting telecommunications service providers on terms and services as shall be agreed upon by the parties.
• The Licensee shall share its infrastructure with other requesting licensees in designated areas as provided by the Act, Regulations, Government policies, guidelines and directives.
• The Licensee shall comply with the sector policy, regulations and guidelines requiring the listing of a portion of its shares on the Uganda Securities Exchange.
• The Licensee shall comply with the Act, the Regulations made under the Act, standards, directives, guidelines issued by the Licensor in the public interest, including but not limited to, national development, consumer protection, environment protection, disaster relief services, and security of persons and infrastructure.
• Under the terms of the license, the Licensee is authorised, non-exclusively, to establish, install, operate, maintain lease, and sale telecommunications systems and to provide telecommunication services and make available network infrastructure systems to other licensed operators and authorised persons in Uganda.

This license extension is guided by the new licensing framework, which is in line with the new broadband policy of 2018 that aims to boost investment in the communications sector so as to improve the quality of telecommunications services in Uganda.