Godwin Muhwezi Bonge
6 October 2008
Kampala — Uganda Telecom has taken steps to stamp its presence in the increasingly competitive telecom market with $115 million network expansion. The company recently completed another phase of expansion in which it extended its network to cover more than 75 per cent of the Ugandan population.
"We have more than doubled the network we had by June last year," Mr Hans Paulsen, the chief commercial officer of Uganda Telecom, said. "We have extended to an average of about 200 communities across Uganda."
Part of the rollout is the 3G network coverage where subscribers can make video calls and watch television and surf internet as well. Although the perception among the public is that 3G services have received look-warm uptake, Mr Paulsen insists that 3G services are aimed at addressing a particular segment of the market. "3G is not a mass product and its services always address a particular segment of the market," he said.
However, the 3G broadband that adds agility to internet connection has received what he calls good reception. "Our 3G broadband has picked up well." Mr Paulsen said. "We have so far utilised 50 per cent of our capacity."
Uganda Telecom has also expanded its line of business to building Wild Area Network and Virtual Private Networks among others. The company has so far constructed the URA Net, platform that caters for all communication needs of the Uganda Revenue Authority. "We want to position our selves as a total solutions provider," he said. "Products like URA Net help the company focus on its core line of business"
UTL's venture into product service business is seen as an attempt to competitively position itself ahead of competition in the telecom sector. The entry of Warid Telecom and the imminent entry of Hits Telcom have turned the telecom into a battle ground with each of the four companies introducing new products aimed to prize away customers of the already established networks.
Warid's Mega Bonus, which according to the company has largely proven successful, got Uganda Telecom, Zain and MTN back to the drawing board with each introducing cheaper calling profile to retain customers. Uganda Telecom introduced Bonna Bogere and MTN introduced MTZ Zone while Zain introduced Chacha.
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