MTN’s operating licence to be renewed by Uganda

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Ugandan Media Centre told Reuters Uganda will renew the operating licence of the local unit of South African Telecom company MTN Group. The agency however noted the renewal will come with new strict terms.

MTN Uganda, which competes with a local unit of India’s Bharti Airtel and other smaller companies, is the country’s biggest telecommunications firm with more than 10 million subscribers. The company was launched in Uganda in 1998 after acquiring a 20 year operating licence which was due to expire.

In response to MTN’s application for a ten year extension of its licence, the Uganda Communications Commission asked the company to agree to list its shares on the local stock exchange as a condition for renewal.

MTN Uganda has received multiple complaints on social media from subscribers over data bundles being used up quickly and the company not responding to complaints. Uganda’s telecoms sector has expanded rapidly, analysts however note that a new tax on social media could stop more investments from being injected into the sector.

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