30 years later,  feature phones still outstrip smartphones 

On May 31, 1995—exactly 30 years ago—history was dialed into motion. Then Vice-President Dr Specioza Wandira Kazibwe picked up a mobile phone and called an official in Britain, making Uganda’s first-ever international mobile call. With that groundbreaking moment, she officially launched Celtel (which would evolve into Zain and now Airtel), marking the birth of mobile telephony in the country.

Three years later, on October 21, 1998, another historic call echoed across borders. President Yoweri Museveni connected with South African President Nelson Mandela, officially launching MTN’s commercial services in Uganda and cementing the nation's place in the mobile revolution.

Fast forward to 2025, and mobile phones are now in the hands of millions. According to the 2024 national census, 43 percent of Ugandans aged 10 and above — about 13.6 million people—own a mobile phone. Of these, 37 percent own a single device, while 6 percent juggle two or more.

The cost of connectivity has fallen, too. What once cost a staggering $1,000 (Shs3.6 million) in 1995 can now be for under $20 (Shs72,727). Meanwhile, smartphone usage continues to surge, putting powerful digital tools in the palms of everyday Ugandans.
Despite the global surge in smartphone adoption and penetration, Uganda's mobile phone market is still dominated by feature phones - a trend propelled by affordability and accessibility limitations.

Mobile phone market
The global insights from GSMA Intelligence reveal that as of early 2025, Uganda boasts a total of 38.6 million mobile connections, an equivalent of 76.2 percent of the population. However, in comparison to smartphones, it can be argued that most of these connections are linked to feature phones.

Over the years, mobile phone subscriptions in Uganda have been on a steady upward trend, with total subscriptions increasing from 33.1 million in 2022 to 37 million in 2023 and 41.6 million as of 2024. 

However, the number of subscriptions to feature phones (26.7 million) is still higher than that of smartphones (18.2 million) according to the Uganda Communications Commission's (UCC) annual communications report 2024 and market performance quarter four report, respectively.

Data from UCC shows that feature phone users have increased from 17.8 million in 2020 to 26.7 million in 2024. This is due to their affordability, durability, and longer battery life, which are crucial attributes in rural or underserved areas.
According to Statista, the feature phone market in Uganda is projected to generate $106 million in revenue in 2025, with an anticipated annual decline of 5.4 percent through 2029. This projected decline is indicative of a gradual shift towards the adoption of smartphones.

Progress of smartphone adoption 
According to UCC's statistics, smartphone usage has more than doubled from 2020 to 2024, growing from 7.6 million to 18.2 million users.
“This is being driven by growing demand for mobile internet for businesses, work, and popularity of social media apps,” says Ms Rhona Arinaitwe, senior manager, corporate communications at MTN.

The global surge in internet usage and its benefits significantly contribute to the increase in smartphone adoption. Dr Doreen Bogdan-Martin, the director of, ITU Telecommunication Development Bureau, says almost the entire world population (97 percent) lives within reach of a mobile cellular signal. 82 percent of the world’s population lives within reach of an LTE or higher mobile-broadband signal, and another 11 percent have access to a 3G network.

“Smartphones support higher-speed networks (3G/4G/5G), allow users to stream, browse, learn, and work online. With 4G coverage reaching 55 percent of the country and 5G being introduced in urban areas, the digital environment is becoming more conducive to smartphone use,” says Mr Fred Otunu, director of corporate affairs, Uganda Communications Commission, in an interview with DM Money on May 16.

"Our smartphone penetration—the proportion of smartphone owners relative to total mobile subscribers—remains low at just 35.6 percent. Though this figure represents growth in smartphone usage over the years, it also highlights challenges with the widespread smartphone adoption in Uganda," says Ms Arinaitwe.

“This lags behind Ghana’s over 60 percent, Kenya’s 72.6 percent, Morocco’s 75 percent, and is significantly lower than Egypt and South Africa, where penetration exceeds 90 percent,” she adds.

Her observation reiterates the sentiments of Mr Thembo Nyombi, the executive director at UCC, during the launch of the official preparations of the 2024 Global Symposium for Regulators 2024 (GSR-24).

“We still have challenges. Although data uptake is going up as well as connections, where we now have 36 million SIM cards, usage and adoption are going up,”  Nyombi says.
This statement highlights the need for continued efforts to bridge the digital divide and promote smartphone penetration in the country.

Challenges
“The cost of smartphones is a big consideration. These high costs are driven by a 35 percent import tax on smartphones,” says Mr David Birungi, public relations manager, Airtel.

“The cost of smartphones varies depending on the intended purpose of the customer, features, and specifications of the different devices. However, to provide estimates of the different categories: budget phones, which are phones for basic use, cost Shs200,000 to Shs600,000, midrange phones cost between Shs600,000 and Shs1.5 million. Some smartphones are considered premium or advanced due to their high performance and advanced features, and these cost between Shs2 million and Shs4 million. Then there are top-tier ones, and these range from Shs4 million to Shs6.5 million,” says Mr Lawrence Ngobi, a phone dealer in Iganga.

Explaining the dominance of feature phones, Mr Otunu says, “Feature phones are significantly cheaper, providing the different costs of phones in the Ugandan market.

With Uganda’s Gross National Income (GNI) per capita around Shs3.7 million annually, many households find it more practical to purchase a Shs30,000 to Shs80,000 feature phone rather than a smartphone priced between Shs200,000 and Shs500,000, especially considering taxes that can reach up to 49 percent on higher-end devices,” Mr Otunu adds.

“Feature phones, particularly basic models, perform well in rural areas where 2G coverage (75 percent) is still stronger than 3G/4G/5 G. Many rural households lack reliable electricity (only 25 percent have grid access), making feature phones, known for their long battery life, more convenient," says Mr Fred Otunu.

Ms Arinaitwe therefore summarises, "For many Ugandans, especially in rural areas, feature phones are a trusted option. They are more affordable, energy-efficient, and incredibly durable, which is especially useful in areas with limited access to electricity. They do the basics, calls, SMS, and mobile money very well."

Infrastructural limitations and digital literacy have also inhibited smartphone penetration and adoption in Uganda, especially in rural areas, which limits the usage of smartphones.

“A significant proportion of the population, particularly in rural areas, has limited digital literacy skills, which restricts device adoption even when the devices are accessible,” Ms Arinaitwe emphasizes.

These challenges leave millions of Ugandans unable to access or afford them, which in turn stifles the digital transformation. Subsequently, UCC, along with Uganda's giant telecoms, are making strides in bridging this gap.

Bigger picture
Mr Otunu explains that smartphones are shaping the future, but feature phones still play a significant role in the present. Uganda is currently undergoing a digital transition, with mobile internet subscriptions exceeding 19.5 million. 
Efforts to enhance digital access, lower device costs, and expand 4G/5G coverage are propelling the country toward a more connected future.

“Unless the issue of affordability is addressed, particularly by reducing the 40-49 percent tax burden on smartphones, feature phones are likely to maintain a strong presence in the market for the foreseeable future,” he says. 

Mr Otunu notes that Mobile Network Operators (MNOs) are providing budget smartphones bundled with data packages, which helps bridge the affordability gap. Government initiatives, such as promoting local device assembly (for example, the ENGO factory in Namanve), are also making smartphones more affordable by eliminating import taxes.

Initiatives like UCC's partnership with the Federation of Small and Medium Enterprises (FSME) launched in 2018, aimed to alleviate these constraints by providing digital literacy training and subsidising smartphone purchases for MSMEs.
MTN has created several initiatives to meet the rising demand for smartphones and mobile data.

"MTN has established partnerships with Original Equipment Manufacturers (OEMs) and smartphone dealers to subsidise the cost of entry-level smartphones, targeting first-time users entering the data market. For example, our collaboration with itel, a leading mobile phone brand, enables us to offer budget-friendly, high-quality devices accompanied by a free 3GB monthly data bundle for the first three months. Additionally, customers enjoy a 100 percent data bonus on every data bundle purchased during this period when using itel devices on the MTN network,” says Ms Arinaitwe. 

“MTN launched the Kabode Supa Smartphone under the device financing scheme. This programme allows customers to acquire smartphones through flexible installment payments, starting with an initial deposit of Shs45,000 and affordable monthly, weekly, or daily payments over eight months, making ownership achievable for a broader segment of the population," she adds.

“MTN also partnered with M-KOPA to increase digital inclusion by providing high-quality smartphones payable in manageable installments, further easing the financial barrier for many Ugandans,” adds Ms Arinaitwe. 

Additionally, Ms Arinaitwe highlights that beyond device accessibility, MTN is investing in expanding and upgrading the network's infrastructure, its retail and agent network, including device stockists, as well as investing in community-based digital literacy intiatives while continuing to offer affordable and personalised data bundles tailored to diverse customer needs—ranging from students and SMEs to rural communities and heavy data users, to deliver faster and more reliable smartphone connectivity.

On the other hand, Airtel has partnered with several stakeholders to fix the affordability issue.