The recent announcement by the government to reduce the cost of internet services may not have a significant impact due to the low internet penetration and connectivity in the country.
This week ,the government announced plans to reduce the cost of internet services from $70 to $35 per Mbps per month for government institutions.
While this news was welcomed by ordinary internet users, it was clarified that the reduction primarily applies to government agencies.
Experts argue that the use of the internet is crucial in increasing demand and ultimately leading to lower prices for all citizens, including those in rural areas who currently lack access to affordable internet.
This could potentially benefit all citizens, including those in rural areas who currently lack affordable internet access.
Despite the progress made in expanding internet connectivity in Uganda, the high cost of internet and low level of penetration remain significant challenges.
MTN Uganda Chief Executive Officer, Sylvia Mulinge, explains the various factors contributing to the high cost of the internet, such as material costs, labor, and purchasing from internet service providers.
"I think the government is driving a digitally very inclusive agenda. The award of the spectrum that the telecom companies received in the month of July was a significant statement in terms of ensuring that we are able to deliver for customers the kind of experience they require," she said.
She cites the need for investments in telecom infrastructure, spectrum licenses and fees, taxes, and distribution costs.
"When you look at it from the Mobile perspective, you need to look at all the unit economic costs in delivering the final GB to the customer," she said.
She acknowledges the government's effort to ensure affordable internet access for all Ugandans by driving a digitally inclusive agenda.
Dr. Hatwib Mugasa, Executive Director of National Information Technology Authority - Uganda (NITA-U), acknowledges the gradual improvement in the cost of the internet in the country over the years.
He highlights the government's role in laying optic cables and progressively reducing the price of internet from thousands of dollars to as low as USD 35 for 1 megabyte per second starting August 1.
"When we first began utilizing the internet in Uganda, it was very expensive. It was thousands of dollars to set up your internet connections. Through the government of Uganda, we laid five optic cables and reduced the price of the internet," he said.
However, a 2022 research report by cybersecurity company Surfshark reveals that Uganda ranks low in terms of internet affordability compared to global standards.
Uganda currently ranks 116th out of 117 countries surveyed in the report.
Mugasa emphasizes that the reduced price for government internet will benefit all government offices and indirectly help ordinary citizens access public services more efficiently.
"They (ordinary citizens) will benefit indirectly. The services that the government offers will become more affordable to the ordinary citizens," he said.
He explains that NITA-U's provision of the internet to government offices allows private citizens to benefit from the service as well, making government services more affordable to the general public.
Sam Agona, Chief Technical Officer at Next Media Services, acknowledges the progress made in ensuring affordable internet in Uganda but emphasizes the need for further work.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
He points out that Tanzania is currently leading East Africa in terms of pricing, followed by Kenya and Rwanda, with Uganda in fourth place.
"This comes down to disposable income. How people are willing to spend on the internet and this is an intricacy because however you lower the price if disposable income is not enough to cover that price, even if the price comes to a close to a dollar, the growth will not commensurate," he said.
While the government's announcement to reduce the cost of the internet in Uganda is a step in the right direction, challenges such as low internet penetration and connectivity continue to hinder the impact of these measures.
Agona said efforts to improve affordability and accessibility should continue, with a focus on increasing demand and exploring innovative approaches.
