1

UCC 4Q21 - Market Performance Report

 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 the communications
market overview to:

1. The industry,
2. Prospective entrants,
3. Government,
4. Academia and other stakeholders.
UCC does not give any warranty and may not be liable for the interpretation arising from its use or misuse.
UCC 4Q21 - Market Performance Report

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 Introduction
This is a review of the industry performance, trends and key developments for the quarter starting October
to December 2021. The report covers:

1. Outlook of the Global Telecom Market Place

2. Uganda Highlights in the Telecom Industry
3. Service access
4. Traffic and Usage
5. Industry Revenues
6. Post and Courier Services
7. Multimedia and Broadcasting Market

UCC 4Q21 - Market Performance Report

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4
UCC 4Q21 - Market Performance Report

Global Highlights
1.1 Facebook Goes META

In the biggest news of the quarter, the tech world saw social media giant Facebook rebrand to “Meta” in
October 2021. This is probably the biggest tech company rebrand in the last 10 years swamping earlier
rebrand efforts by tech actors like Instagram, Dropbox, and Firefox.

In rebranding statements attributed to Facebook, the company claims that the rebrand is motivated by
a new focus beyond messaging to an Artificial Intelligence (AI) and Virtual Reality (VR) inspired new
world. The company further claims that this is natural cooperation from the screen-centered (mobile-
centered) communication that we know today to a deeply immersive virtual connectivity world. This
world they have chosen to call the “Metaverse”.

That being said, brand analysts have continued to posit that the big rebrand was motivated by major
brand damage over the years that saw Facebook’s brand valuation/ranking fall to 15th in the world and
well behind leading tech brands like Google, Amazon, Microsoft, and Apple.
These have maintained the top 5 brand rankings in the last 3 years .

Source: Interbrand Website accessed on 21st February 2021

This brand damage analysts claim has been fueled by several incidents like,
1. The Cambridge Analytica Electoral Process manipulation allegations of 2018
2. Increased regulatory scrutiny and pressure on micro profiling that is a key tenet of Facebook’s
business model.
UCC 4Q21 - Market Performance Report

3. Various antitrust investigations in the US and in Europe into Facebook’s conduct.

5
 1.2. Big Tech Valuations and Subscriptions

December 2021 saw the big tech companies close the year with record annual surges in market
capitalization. The 5 leading tech companies (Alphabet, Amazon, Apple, Meta Platforms (formerly
Facebook), and Microsoft) posted a record USD 2.45 trillion increase in market caps over the 12-month
period. Microsoft, Apple, and Alphabet Inc. were the top three contributors to the S&P 500 index’s 2021
gains.

Leading this growth, was Alphabet Inc.’s 65% annual gain in market cap over the 12 months period.
This represents Alphabet’s biggest annual surge in market cap since 2009.

The big tech growth over the 12 months remains fueled by growth in cloud services, increased digital
ad spend as sectors recover from the earlier lockdowns, the launch of new enterprise software as well
as new hardware releases by entities like Apple.

Company Market Cap (Dec 2021)

Apple USD 3 Trillion

Microsoft USD 2.5 Trillion

Alphabet Inc. (Google) USD 2 Trillion

Amazon USD 1.7 Trillion

Meta (Formerly USD 0.9 Trillion

Facebook)

Source: https://companiesmarketcap.com/tech/largest-tech-companies-by-market-cap/
UCC 4Q21 - Market Performance Report

Source: Bloomberg
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 Source: Bloomberg

1.3. Facebook Outages

The quarter witnessed a 4-hour blackout on all Facebook platforms including Whatsapp, Facebook
Messenger, and Instagram affecting more than 2 billion users worldwide.

In a public statement, FB explained that configuration changes at the time at their various data centers
were the cause of the shutdown and not a Distributed Denial of Service Attack (DDOS). Facebook
further reassured its customer base that no personal data was compromised during the outage.

UCC 4Q21 - Market Performance Report

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 1.4. Ofcom Sets Consumer Protection and Risk Management Rules for Video
Sharing Platforms

In continuing regulatory focus on video-sharing platforms, the UK regulator issued principles-

based guidance on obligations of video-sharing platforms like Tik Tok, Snapchat, Vimeo, and
Twitch.

The October 2021 guide referenced as “The video Sharing Platform Guidance” obliges platforms
to put in place risk management and consumer protection systems to guard against harmful
content like hate speech, terrorist content, child sexual abuse material, racism, and xenophobia.

The regulator’s effort follows statutory and self-regulation efforts like content mediation by content
sharing platforms that have gained traction over the last two years.

Ofcom’s decision to develop this guide was based on its research in 2021. The research
conducted on video-sharing platform users showed that a third of U.K. internet users say they
witnessed or experienced hateful content; a quarter claimed they were exposed to violent or
disturbing content; while one in five had been exposed to videos or content that encouraged
racism.
UCC 4Q21 - Market Performance Report

1.5. Global smartphone shipments

The quarter recorded a 40 million growth in the number of global smartphone shipments. This
translates into nearly 10% quarter-on-quarter growth of smartphone shipments despite the shortages
in hardware chips witnessed during the last half of 2021.

In terms of market share, Apple led total shipments with 85 million phones sold accounting for 23% of
total phone sales during the period. It was followed by Samsung and Xiaomi that accounted for 19%
and 12% share of global shipments respectively during the period.

8
 Market Share of
Source: IDC Fourth Smartphone
Quarter 2021 Repoort Shipments
4Q21

1.6. NBC renews North America Premier League Media Rights

In further confirmation of the growing soccer market in North America, broadcast giant National
Broadcasting Company (NBC) a commercial broadcaster in the US renewed its UK Premier League
broadcast rights for a further 6 years (2022 - 2028).

The USD 2 billion fees paid by the broadcaster to beat off interest from ESPN and CBS translates into
a nearly 100% increase in fees paid for the same content in 2016 for the same rights and duration.
By comparison, North America continues to be a prime live sport media market with the annual payout
for the premier league media rights more than tripling payments by other regional broadcasters.

RENEWED
UCC 4Q21 - Market Performance Report

US renewed its UK
Premier League
broadcast rights for
6 years
(2022 - 2028)

Source: The Independent 9

 Region Broadcaster Fees Rights Year of award
(USD Billions) Duration
USA NBC 2.7 6 years 2021

MENA BeIN Sports 0.5 3 years 2020

Africa Super Sport 0.25 3 years 2020

(Sub Saharan)
South America ESPN 0.3 3 years 2022

Australia Optus Sport 0.6 6 years 2021

France Canal+ 0.3 3 years 2021

Slovakia
Czech
United Kingdom Sky Sports, BT, 6.6 3 years 2022
BBC
Sweden Nordic 0.3 6 years 2021
Denmark Entertainment
Finland Group
UCC 4Q21 - Market Performance Report

1.7. Video Streaming and New Pressure on Broadband Infrastructure

The extended lockdowns have fast-tracked the appeal and global dependence on content and video
streaming services. The highlight of this during the quarter was the alleged 2.1 billion hours of viewing
attributed to Netflix’s blockbuster show called Squid Game.

So significant has been the growth in traffic on account of the show’s viewership that South Korean
broadband Provider SK Broadband has reported a record traffic peak of 1,200 Gbps per second
10 attributed to the Squid Gameshow. This is from an earlier traffic average of only 50 Gbps.
Subsequently, in an October 2021 lawsuit in Seoul, the broadband provider has sought compensation
from the streaming giant to accommodate increased network traffic and maintenance costs. The
streaming giant that has since become the second biggest traffic generator in South Korea has
promised to review the claims and work with the network provider to maintain quality service with its
last-mile customers.

The growth in video streaming traffic brings back earlier industry conversations on the matter of net
neutrality.

UCC 4Q21 - Market Performance Report

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 UCC 4Q21 - Market Performance Report

12
Domestic Highlights
2.1. First Telco Listing on Uganda Securities Exchange

In a market first, Uganda saw a licensed telecom entity get listed for the first time on the local securities
exchange. The listing of 20% of the MTN Uganda portfolio was in fulfillment of the National Broadband
Policy as well as licensing obligations from the sector regulator .

In another first, the Initial Public Offering (IPO) was issued through traditional intermediaries as well
as new mobile money channels. This is probably the most inclusive IPO on the Uganda Securities
Exchange (USE).

At the end of the IPO, the operator had raised USD 151 million while the Group maintained an 83%
share of its local subsidiary.

Source:nilepost.co.ug/2021/10/06/mtn-uganda-to-float-20-of-its-shares-on-the-uganda-securities-
exchange/

2.2. New FDI in Telecom Infrastructure Markets

The highlight of the domestic infrastructure market was the conclusion of Towerco of Africa’s (TOA)
acquisition of a majority stake in Ubuntu Towers Uganda Limited, a newly licensed passive infrastructure
provider in Uganda.

Towerco of Africa is a wholly-owned subsidiary of Axian Group that has terrestrial and undersea telecom
infrastructure interests around the continent. The Group services a combined customer portfolio of 25
million subscribers with more than 15,000 Kms of terrestrial fiber and 3,700 tower deployments.

The transaction should release more than USD 50 Million in equity and debt finance for Ubuntu
Towers Uganda Ltd.
UCC 4Q21 - Market Performance Report

13
 George A. Ssamula
Chief Legal Officer
Ubuntu Towers

Axian Telecom has been the most active telecom player of Africa in terms
of inorganic growth. In addition to Mobile, Fixed as well as Digital Financial
services and deep expertise in Telecom Infrastructure, it made it an easy
choice for us as Ubuntu to make Axian an equity partner. We are delighted
to be supported by Axian, especially looking at the achievements over the
last 12 months some of which include the Tigo Tanzania acquisition; the
successful $420m debut bond issuance and Investment in Ubuntu Towers.

This transaction is in line with our strategy to bring to better connectivity,

to Ugandans, especially in the under-served areas and to drive national
development agenda hand in hand with a purely African founded, and
focused investor

2.3. Continued Relevance of Niche Brands

The telecom landscape continues with segmentation of markets and value prepositions by providers
to special interest groups.

In 4Q21, the market saw Airtel renew its partnership with K2 Telecom a central region-focused telecom
brand under the number ranges 708 and 709. In the partnership, Airtel maintains a revenue share
arrangement with the K2 brand owners who initially run the brand as a Mobile Virtual Network Operator
- MVNO outfit.

Airtel provides all radio and core network services in the partnership. The brand owners engage in joint
marketing with the MNO.
UCC 4Q21 - Market Performance Report

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2.4. Policy Stewardship Changes in Business Process Outsourcing (BPO)

In a bid to kickstart Uganda’s competitiveness in the ICT Business Process Outsourcing (BPO) space,
the Ministry of ICT and National Guidance (MOICT&NG) has commissioned the inaugural BPO and
Innovation Council.

The 9-member council is chaired by Prof. William Bazeyo who also doubles as the Chairperson of
Makerere University Research and Innovations Fund (Mak-RIF). Other members include,
1. Dr. Rebecca Isabella Kiconco, the Vice-Chairperson of the Council and Lecturer Makerere University
Business School
2. Rajeev Agarwal, a business consultant
3. Eva K. Mugerwa, a lawyer and member of the United Nations Joint Population Programme
4. Rowena Turinawe, the Business Transformation Manager at the National Information Technology
Authority Uganda
5. Fred Otunnu, the Director of Corporate Affairs at the Uganda Communications Commission.
6. Richard Okuti, an International Trade expert
7. Richard Zulu, the chairperson of Startup Uganda
8. Charles Odongtho, a communications consultant
9. Dr. Diana Nandagire Ntamu, the Director of the Entrepreneurship, Innovation and Incubation Centre
at Makerere University Business School (MUBS).

Dr. Rebecca Rajeev Agarwal Eva K. Mugerwa

Isabella Kiconco

UCC 4Q21 - Market Performance Report

Rowena Turinawe Fred Otunnu Richard Okuti

Dr. Diana
Richard Zulu Charles Odongtho
Nandagire Ntamu 15
 The council is tasked with:
1. Formulating strategies for job creation through ICT outsourcing and Innovation
2. Prescription of regulatory reforms and projects to facilitate the growth of ICT BPO and Innovation
industry.
3. Identify, support, and scale-up breakthrough technologies and disruptive innovations.

2.5. The Uganda Film Festival is Launched

The 9th edition of the Uganda Film Festival (UFF)
was launched in December 2021.

As has been the custom, the annual film awards

are preceded by a 3-month long host of activities
that include regional public exhibitions and
screenings, media campaigns as well as industry
capacity building.

The capacity-building pieces of training focus on

a range of areas including acting, sound and light
management, scriptwriting, production as well as
legal and commercial aspects of the creatives
market. Registration and expressions of interest
for training are underway.

Multichoice Uganda, Uganda Tourism Board, and Tangerine have joined the UCC as early sponsors
for the 9th Uganda Film Festival.
Some of the Previous winners of the UFF awards include,
1. Best Student Film – Till Death Do Us Apart
2. Best Short Film – The Blind Date by Loukman Ali
3. Best Supporting Actress in Feature Film – Keloy Loy Kemigisha
4. Best Director for a Feature Film – Kizito Samuel Saviour
UCC 4Q21 - Market Performance Report

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2.6. Uganda Content Development Support Programme Launched

In further support to the local creatives market, the UCC launched the Content Development Support
Programme. The program is one of the many industry initiatives aimed at improving local content
production in the country.
In the inaugural financing round, under the theme “Promoting Culture and Tourism”, UGX 512 million
was awarded to four select projects after a competitive beneficiary evaluation.
The beneficiaries were,
1. Rachael’s Old King by Mark Byarugaba
2. Karamojong by Eleanor Nabwiso
3. Unheard by Polly Kamukama and Joseph Ssebagala
4. Borders by Ampire Daphne Rubaramira

Ampire Daphne
Rubaramira

UGX
172.9M

Polly Kamukama and

Joseph Ssebagala

UGX
150M

Mark Byarugaba

UGX
130.8M
UCC 4Q21 - Market Performance Report

Eleanor Nabwiso

UGX
50M

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 2.7. Uganda Film on the Continent

Local productions continued to make inroads on the continental film scene with several nominations in
the annual Africa Movie Academy Awards (AMAAs). In the November 2021 awards held in Nigeria, the
Ugandan productions were nominated in 6 categories:
1. Stain – Best Film, Best Director, Best Achievement in Screenplay, Best Cinematography, Best Visual
Effects, Ousmane Sembene Award for Best Film in an African language, Best Actress in Leading Role
2. Tecora – Best Production Design, Best Makeup, Best Costume Design
3. Meat – Best Short Film
4. A Thousand Fate – Best Animation
5. Noboth – Best Documentary
6. Monica – Best Actor in a Supporting Role

Joan Agaba won Best Lead Actress for her role in “Stain” while Asher Roshen’s production “Meat” won
Best Short Film category in the awards.

Source: Multichoice Talent Factory Source: IMDB

Relatedly, in December 2021, a first Ugandan production was debuted on global streaming service
Netflix. “The Girl in the Yellow Jumper” is produced by Loukman Ali a local producer and past winner of
Best Short Film in the Uganda Film Festival.
UCC 4Q21 - Market Performance Report

Source: Netflix Source: Loukman Ali

https://www.netflix.com/ug/title/81505036# https://twitter.com/LoukmanAli

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2.8. Solar Powered Tablet Pilot for the Digitally Excluded

In pursuit of the digital inclusion agenda, the UCC through Uganda Communications Universal Services
Access Fund (UCUSAF) launched a last-mile digital inclusion pilot premised on the provision of
low-cost internet-connected solar-powered tablets to rural digitally excluded groups. Special content
in education, e-governance, and agriculture were specially provided to the pilot subjects/beneficiaries.

The project that was undertaken in the areas of Loodoi in Kotido, Looro in Amudat, Bubinge A and
Musitu in Butaleja, Kyetume in Kayunga, Bukayo in Buvuma, Kanyashogyi in Kanungu, Mvule in
Bulisa, was specially mooted to improve long term design of grid, awareness, and content limitations
in digital inclusion programming.

The pilot project seeks to further further facilitate persons disadvantaged by poverty to participate in
the economy and reap the benefits of access to communication.

This would provide useful insights and learnings in the mainstream of similar projects for the inclusion
of other off-grid communities and the promotion of relatable relevant content for target communities.

Hon. Nyombi Thembo

Director UCUSAF
UCC 4Q21 - Market Performance Report

UCUSAF (formerly RCDF) has in the last 10 years made

significant interventions in addressing infrastructure gaps through
initiatives like the financing of passive infrastructure deployments.

That notwithstanding, new research has shown that there remains

significant inclusion bottlenecks on account of device affordability,
low penetration of grid electricity as well as limited digital literacy.
This pilot project seeks to grow insights to improve programme
design in addressing this kind of digital exclusion

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 UCC 4Q21 - Market Performance Report

20
Subscriptions and Access
3.1. Radio Network Infrastructure Access

Passive Towers

UCC 4Q21 - Market Performance Report

3.2. Broadband Access Capacity

In terms of broadband access total international bandwidth
capacity grew from 228,546 Mbps at the end of September
to 238,142 Mbps at the end of December 2021.

This growth in bandwidth translates into an access indication

of 5,515 Mbps for every million inhabitants from 5,293 Mbps 238,142 Mbps
of Total International
per million inhabitants. Bandwidth.

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 3.3 Last Mile Voice Connectivity

In terms of connectivity, the last three months of 2021 saw 1.05 million jump in subscriptions matching
the previous 12 months quarterly peak of 1.05 million new subscriptions posted in 3Q21.

This growth in subscriptions is a 4% quarter on quarter growth and a 9% annual growth in the 12
months ending 31st December 2021.

3.4. Last Mile Broadband Connections

UCC 4Q21 - Market Performance Report

1Q21 2Q21 3Q21 4Q21

1 in every 2 Ugandans is connected to a broadband connection

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 The quarterly peak performance for the year during 4Q21, 1.8 million new subscriptions is attributed
to traditional seasonal demand of the festive season characterised by heavy promotional campaigns
for both gadgets and data offerings as well as continued loosening restrictions on cross boarder travel.

3.5. Devices and Terminals

At the end of December 2021, a record 34 million devices were connected to the network. These
include mobile handsets, laptops, tablets and other IOT devices.

BASIC MOBILE PHONE FEATURE PHONES

Can make calls and Can make and receive calls, send
send text messages text messages and provide some of
the advanced features found on a
smartphone.

Monthly Users Monthly Users

2Q21 3,949,752 2Q21 18,524,536

3Q21 3,549,893 3Q21 19,849,299
4Q21 3,532,047 4Q21 20,519,692

SMARTPHONES
A class of mobile phones and of multi-purpose mobile computing
devices. They are distinguished from feature phones by their
stronger hardware capabilities and extensive mobile operating
systems, which facilitate wider software, internet (including web
browsing over mobile broadband), and multimedia functionality
(including music, video, cameras, and gaming), alongside core
phone functions such as voice calls and text messaging.
Monthly Users

2Q21 9,729,758
3Q21 9,390,005
4Q21 10,098,098

In terms of quarterly net growth, device additions on the network stood at 1.3 million new devices in
the 3 months ending December 2021. This is the highest net quarterly addition in the last 12 months.

Worth noting is the fact that net terminal additions (of 1.3million gadgets) were less than the new
broadband connections (2.5million data connections) during the period. This is on account of the fact
UCC 4Q21 - Market Performance Report

that most new gadgets have multi sim capabilities.

Further, it was noted that smart and

feature phones account for more
than 95% of new network connected
15,000 units
terminals.

Basic handsets shrunk by more

than 15,000 units during the period.
The shrinkage in basic handsets is a
continuation of observations made in 3Q21

the preceding three quarters.

4Q21

23
 3.6 Growing E-waste Challenge
The withdrawal of basic handset terminals from networks more than ever puts pressure on industry
actors to mainstream e-waste management policies as the market migrates to new data centric
technologies (3G, 4G and hopefully 5G).

Early market research by the UCC

estimates more than 4.5 tonnes of
electronic waste shall be collected in
Uganda per year.

On the UCC’s part, the National e-waste

management facility was commissioned
in June 2021 while sector (telecom and
broadcast) waste disposal guidelines are
under development.

Relatedly, some countries and network operators continue to decommission 2G networks and by
extension service to basic handsets. This creates new pressure on the management of terminals,
radio and core network 2G infrastructure.

Table 1: Network 2G Decommissioning Status

UCC 4Q21 - Market Performance Report

Mobile Network Operator Country Continent Status

Reliance India Asia Decommissioned

NTT DOCOMO Japan Asia Decommissioned

KDDI Japan Asia Decommissioned

Softbank Japan Asia Decommissioned

Hutchison Macau Asia Decommissioned

SmarTone Macau Asia Decommissioned

24
 Mobile Network Operator Country Continent Status
CTM, Hutchison, Macau Asia Decommissioned
SmarTone*
M1 Singapore Asia Decommissioned

Singtel Singapore Asia Decommissioned

StarHub Singapore Asia Decommissioned

M1 Singapore Asia Decommissioned

SingTel, M1, Singapore Asia Decommissioned

StarHub
KT Corp South Asia Decommissioned
Korea
Chungwa, FET, Taiwan Taiwan Asia Decommissioned
Mobile
FET Taiwan Asia Decommissioned

Taiwan Mobile Taiwan Asia Decommissioned

AIS Thailand Asia Decommissioned

CAT Telecom Thailand Asia Decommissioned

DTAC Thailand Asia Decommissioned

Bell MTS Canada North Decommissioned

America
Telus Canada North Decommissioned
America
SaskTel Canada North Decommissioned
America
AT&T United States North Decommissioned
America
Telstra Australia Oceania Decommissioned

Optus Australia Oceania Decommissioned

Vodafone Australia Oceania Decommissioned

2degrees New Zealand Oceania Decommissioned

Source: www.oliviawireless.com accessed on 22nd February 2022

UCC 4Q21 - Market Performance Report

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 3.6. Digital Financial Services Subscriptions and Access Infrastructure

i.) DFS and Payments Provider Licensing

The Central Bank continued with its licensing of non-bank payment service providers (Mobile Money
and payments agencies). At the end of December this number had grown to 12 licensed non-bank
payments entities across different licensing classes.

Table 1 below shows the different licensed Non-Bank Payment Service Providers and Payment System
Operators as of January 5, 2022.

Institution Category of Class of Address of Telephone Email and

Licence licence HQ Contacts Website

MTN Payment Large Funds Plot 1-4 +256323120000/ Website:

Mobile Mon- Systems Transfer Wampewo +256323120001 www.mtn.
ey Uganda Operator Avenue, co.ug
Limited Nyonyi Gar-
dens. P. O. Email: talk-
Payment Class A Box 40340, business.
Service (Large elec- Kampala, ug@mtn.
Provider tronic mon- Uganda com
ey issuer

Airtel Mobile Payment Large Funds Airtel Tow- +256200202003 Email:

Commerce Systems Transfer ers, customer-
Uganda Operator Plot 16A, service@
Limited Clement ug.airtel.
Hill Road, com
Payment Class A Nakasero,
Service (Large elec- P. O. Box Website:
Provider tronic mon- 6771, www.airtel.
ey issuer) Kampala, co.ug
Uganda
Mcash Payment Medium AHA Tow- +256414233799/ Email:
Uganda Systems Funds ers, Plot 0800100166 info@
Limited Operator Transfer 7 Lourdel mcash.ug
road, Naka-
sero, P. O. Website:
Payment Class A Box 8020, www.mcash.
Service (Medium Kampala, ug
Provider electron- Uganda
ic money
issuer)
Micropay Payment Small Funds Wildlife Tow- +256414696462 Email:
Uganda Systems Transfer er Building, Info@micro-
UCC 4Q21 - Market Performance Report

Limited Operator Plot 31, pay.co.ug

Kanjokya,
P.O. Box Website:
4593, www.micro-
Payment Class A Kampala, pay.co.ug
Service (Small elec- Uganda
Provider tronic mon-
ey issuer)

26
Interswitch Payment Large Funds Plot 2B, Na- +256414256671 Website:
East Africa Systems Transfer kasero Hill www.inter-
(U) Limited Operator Road, P. O. switchgroup.
Box 7555, com/ug
Kampala,
Payment Class A Uganda
Service (Large elec-
Provider tronic mon-
ey issuer
Issuer of Class A
Payment (Payment
Instruments Cards)
Pegasus Payment Large funds Plot 38A +256393193255 E-mail:
Technolo- Systems transfer and Martyrs info@pega-
gies Operator Third-party Way. P. O. sus.co.ug
Limited of systems Box 36817
Uganda Mukuru
Limited Curve, Ntin-
da, Kampa-
la, Uganda
Agent Bank- Website: Medium AHA Tow- +256414233799/ Email:
ing Com- www.pega- Funds ers, Plot 0800100166 info@
pany sus.co.ug Transfer 7 Lourdel mcash.ug
road, Naka-
sero, P. O. Website:
Box 8020, www.mcash.
Kampala, ug
Uganda
Wave Payment Large Funds Mirembe 0200909103 E-mail:
Transfer Systems Transfer Business ugoffice@
Limited Operator Centre, 4th wave.com
Payment Class A Floor, Plot Website:
Service (Large elec- 46, Lugogo www.wave.
Provider tronic mon- Bypass com
ey issuer) P.O. Box
102187
Kampala,
Uganda
Chipper Payment Other 7th Street 0200 935 935 Email:
Technolo- Service Payment Industrial uganda@
gies Provider Services Area, SMS chipper-
Uganda House cash.com
Limited Payment Large Funds 2nd Floor, Website:
Systems Transfer Room 203 www.chip-
Operator P.O Box percash.
29274 com
Kampala,
UCC 4Q21 - Market Performance Report

Uganda

Yo Uganda Payment Large Funds 2nd Floor, +256312244641 Email:

Limited Systems Transfer Block A, +256771622909 info@yo.co.
Operator UAP Naka- ug
wa Busi- Website:
ness Park, www.yo.co.
Plot 3-5 ug
Portbell
Road,
P.O.BOX
27105
Kampala.

27
 Future Link Payment Medium Plot 97 Bu- +256312316900 Email:
Technolo- Systems Funds koto Street, +256393238278 info@fltug.
gies Operator Transfer P.O. Box com
75408, Website:
Kampala www.fltug.
com
Guinness Payment Medium BLOCK 0200502050 Email: rob-
Tech (U) Ltd Systems Funds 210, PLOT sanford@
Operator Transfer 1704 safeboda.
Kanyike com
Road, www: safe-
Kyebando boda.com

Stanbic Payment Class A Crested 0800200160 www.stan-

Bank Ugan- Service (Large elec- Towers, 0312224600 bic.co.ug
da Ltd Provider tronic mon- Short Tower.
ey issuer) Plot 17,
Hannington
Road.
P.O Box
7131.
Kampala

Source: Bank of Uganda website accessed on 22nd February, 2022

UCC 4Q21 - Market Performance Report

28
ii.) Registered Mobile Money Accounts

Following 2021’s highest net additions of 0.9 million mobile money accounts recorded in 3Q21, 4Q21
only posted a paltry performance with only 500,000 new mobile money accounts.

The new growth translates into a national mobile money account total of 32.7 million from 32.2 million
accounts at the end of September 2021. This is a national mobile money penetration of 76 accounts
per 100 persons in Uganda

iii.) Account Activity

In the Quarter ending December 2021, total active mobile money accounts stood at 22.6 million of the
32.7 million registered accounts. At the end of the quarter, 70% of registered mobile lines conducted at
UCC 4Q21 - Market Performance Report

least one mobile money related transaction in the preceding 90 days.

1.3 Million Active Accounts In terms of quarter on quarter account activity,

added in 4Q21 there are 1.3 million active accounts in 4Q21.

The active accounts supersede the newly

registered 500,000 accounts largely due to
the resumption of transacting observed on
previously inactive mobile money accounts/sim
cards.

29
 Service Traffic and Pricing
Highlights
UCC 4Q21 - Market Performance Report

30
4.1. Domestic Voice Traffic

The market yet again surpassed 16 billion in total (offnet and onnet) domestic minutes. This is the
highest recorded domestic traffic since the UCC started tracking domestic traffic indicators.

Consistent with previous usage patterns, domestic traffic remains largely 99% onnet resulting from
bundle pricing patterns and bonuses.
UCC 4Q21 - Market Performance Report

The market remains a predominantly 2 SIM market as consumers seek to maximise the onnet voice
call discounts. The multi SIM behaviour is further buttressed by significant cross network mobile money
charges that exist in the payments and P2P remittance markets.

The new growth in traffic translates into an estimated 186 minutes of domestic calls per subscriber per
month.

31
 4.2. International Voice Traffic

For the first time in the previous 6 quarters, total international voice traffic (inbound and outbound)
posted a net quarter on quarter growth.

The 5% quarterly international traffic growth is attributed to traditional seasonal demand as well as the
continued resumption of global and regional business.

4.3. USSD Traffic

For the quarter ending December 2021, the market registered 9 billion USSD sessions translating
into a net quarter on quarter growth of 6%.
UCC 4Q21 - Market Performance Report

9 BILLION
Sessions

This growth is in sync with the growth in mobile subscriptions and mobile money transactions registered
during the three months period ending December 2021.

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4.4. Broadband Traffic

For the 4th quarter running, the market recorded a growth of more than 107 billion MBs. This translates
into a 7% quarter on quarter broadband traffic growth which is near similar to the 8% growth in
broadband subscriptions.

The broadband traffic growth translates into an estimated 500 MBs of data downloaded per broadband
subscriber per month.

500 MBS Per Month Per Subscriber 1500 MBS Per Quarter Per Subscriber

4.5. Mobile Money Transactions

The market yet again registered over 1 Billion Mobile Money transactions in 4Q21 slightly
outperforming the previous 2 quarters by 105 million transactions.
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 This is attributed to the growing P2B and P2P mobile money applications in addition to the offers from
the different operators in the industry particularly during the festive season like, Airtel’s “Money After
Money” promotion and MTN’s “Senkyu” bonus points upon mobile money transactions.

4.6.Pricing Highlights

Retail service pricing in the market was largely driven by the seasonal Christmas calendar and the
associated influx of foreign nationals coming into the country for the festivities.
UCC 4Q21 - Market Performance Report

The growing demand for voice, broadband and mobile money services was largely driven by a host of
offers from different operators. These include:

1. MTN Super Bundle offers: provide more voice and data for the same price. These were launched in
three (3) variants; 3-day, 14-day, and 30-days and can be accessed at *160*60#.

2. Airtel Smartphone offers: provided a bonus data offer for all of its new customers who purchased
smartphones at their outlets.

3. Smile Forever bundles:In 4Q21, Smile introduced the forever non-expiry data bundles that have
different packages ranging from 1GB to 100GBs of data.

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Financial Highlights
5.1. Revenue

In the three months ending December 2021, the industry posted a revenue performance of UGX 1.2
trillion. This is against the backdrop of maintaining a trillion gross revenue mark all year round.

In terms of a year-on year comparison, the gross revenue grew to a tune of UGX 60 billion translating
into a 10% growth.

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 UCC 4Q21 - Market Performance Report

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Post and Courier
6.1. Trending Models in the Sector

The post and courier services sector in Uganda has developed into evolving services and business
models like Real time mail tracking systems, On-time door to door delivery, Order & pay on-delivery,
among others.

The sector is comprised of operators -such as DHL, Sky Net, TNT, Link Bus, Godel, SGA (Big Orange),
Nation courier, S-M Cathan Logistics, Sail Courier, Courie- Mate, Uganda Post Limited (UPL) among
others. These have been enablers in facilitating global trade, especially among small and medium-
sized enterprises (SMEs).

The Post and Courier service segment has therefore been a facilitator of last mile and point to point
mail deliveries countrywide, with a host of operators remodeling their business towards e-commerce
and digital addressing.

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 6.2. Mail Volumes

In 4Q21, the domestic mail volumes were posted by SGA with 29.3%, New Times Express (DHL)
with 27.6%, UPL with 19.3%, Nation Couriers Ltd with 6.1%, CourieMate with 5.4% and other courier
operators contributed 13.4%.

6.3. Outbound and Inbound East Africa Mail Volumes

EMS Inbound International Mail Volumes

The Expedited Mail Service (EMS) - In bound international Mail volume grew from 1,271 mails in 2Q21
to 1,438 mails in 3Q21 registering a 13% increase. This growth continued in 4Q21 to 2,186 mails
translating into a 52% quarter on quarter growth.

East Africa Out-Bound Mail volumes

In the period of October -December 2021, the East Africa out bound Mail volume grew from 1,333 mails
in 3Q21 to 1,478 mails in 4Q21, registering 11% quarter on quarter increase.
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6.4. Rest of Africa Out bound and In bound mail volumes

In 4Q21, the mails sent from Uganda to the Rest of the world increased from 32,011 mails in 3Q21
to 35,945 mails in 4Q21, registering a 12% quarter on quarter growth. On the other hand, the mail
volumes received in Uganda from the Rest of the world grew from 42,782 mails in 3Q21 to 45,997
mails in 4Q21, registering 8% quarter on quarter growth.

In the October - December 2021 period, the imported mails were higher than the exported mails by
10,052 mails which is about 28% of the exported mails in 4Q21.

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Broadcast and Multimedia
7.1 TV Market

i). Free-to-Air

The delivery of FTA channels is mainly via the government-owned SIGNET UG Ltd. By the end of
December 2021, 40 FTAs were carried on the SIGNET platform.

ii). Pay TV

The Pay-Tv market in Uganda is served by a combination of Satellite, Cable and Digital Terrestrial
networks, with 7 licensed content aggregators.

iii). Active Pay TV Subscriptions

4Q21 has seen an increase in the total active subscribers from a total of 1.51 million as of September
2021 to 1.65 million in December 2021. The growth in pay tv subscriptions is seasonal relating to the
resumption of major sports leagues which was expected to kickstart the subscription numbers.

iv). Programming

Pay-Tv service providers deliver a range of content on their platforms and the number of channels on
a network may vary slightly month to month.
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 v). Bouquet Pricing
Bouquet pricing is diverse, with Pay Tv providers offering packages targeted at various market
segments. Subscriber numbers by and large vary heavily with price, indicating a high price
sensitivity for Pay-Tv content.

7.2. Subscription Distribution Across Bouquet Categories as of December, 2021

Broadcast and Multimedia

Station
DSTV
Bouquet
Access
Value Bouquet Prices
Price
UGX 37,000
Channels
75
SITI CABLE Ugandan UGX 15,000 80
AZAM TV Azam PURE UGX 10,000 68
STARTIMES (Satellite) NOVA UGX 13,000 38
STARTIMES (Terrestrial) NOVA UGX 12,000 31
ZUKU TV Smart UGX 12,000 54
GOTV GOTV Lite UGX 12,000 10

Premium Bouquet Prices

Station Bouquet Price Channels
DSTV Premium UGX 239,000 140
SITI CABLE ASIAN UGX 85,000 142
AZAM TV Azam PLAY UGX 37,000 128
STARTIMES (Satellite) Chinese UGX 54,000 21
STARTIMES (Terrestrial) Classic UGX 28,000 14
ZUKU TV Asia Stand Alone UGX 36,500 79
GOTV GOTV Max UGX 40,000 40
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