Africell has joined other telecoms to start selling SIM cards as opposed to giving them out for free.
For more than a year, Africell has been giving out free SIM cards to subscribers using their street vendors.
With this move, Africell still hopes to continue taking advantage of being data bundle giants in the country as in most cases people have been purchasing Africell SIM cards mainly to enjoy their fairly priced data packages.
“In Africa, where almost all consumers use cellphones on a pre-paid basis rather than on long-term contracts, telecom operators face tough subscriber revenue growth conditions. But soaring growth in demand for data services, as more young Africans get online and increased smartphone penetration we believe that this will drive up growth,” the chief commercial officer Africell Uganda Mr Neeraj Gala said.
When asked if this move is meant to overcome loopholes of using SIM cards for insecurity reasons, Mr Neeraj said all their customers have been registering their lines through proper channels.
The Executive Director of Uganda Communications Commission Mr Godfrey Mutabazi, said as regulators they do not have any problem with Africell stopping the issuing of free SIM cards because this a business model they have decided to take on.