Low smartphone uptake linked to high internet costs

The Uganda Communications Commission (UCC) has revealed that the high cost of internet bundles is one of the reasons why most decline to own smartphones.

The highlights were revealed Wednesday by Mr Nyombi Thembo, the Executive Director of UCC at an event in Kampala where Uganda was being announced as the new chair of the African Advanced Level Telecommunications Institute (AFRALTI).

AFRALTI is an Inter-Governmental Organisation established to supplement and spearhead ICT development efforts in Sub-Saharan Africa.  

“One of the factors for lower mobile smartphone uptake is the high data costs. These people design their networks assuming people will uptake data yet most of them can afford it. Smartphone uptake in Uganda is still at 22 per cent. So, when penetration of smartphones is still low, data will become costly,” Mr Nyombi said.

He added: “The other factor is that technology is evolving at a very high speed, so telecom operators cannot lag behind on technology because they will have to invest in 4G, and 5G but the capacity of 4G and 5G is so big and yet the uptake is still very low so the cost of data will remain high.”

Mr Nyombi revealed that talks are underway with the government to reduce or remove taxes on entry-level smartphones so that their costs can be reduced and every Ugandan can afford a smartphone.

“Voice bundles will continuously decrease to minimal levels as business models evolve. We project that in 10 or 15 years, we might enjoy free voice calls because data is the thing, but our dream is to see everybody connected to a smartphone,” he said.

A 2023 report from the UCC shows that from September last year to date, the number of people using the Internet has grown to 15.3 million, mobile telephone subscriptions have grown to 36.5 million, Internet subscriptions are at 15.3 million whereas mobile money registrations have risen to 40.6 million.