Kampala — For the past six months, Derrick has operated a small but profitable internet business from three locations across Kiira Municipality, selling daily access to public Wi-Fi hotspots to customers priced out of conventional broadband services.
The model is simple: customers pay Shs1,000 for unlimited internet access for 24 hours. The business now generates between Shs900,000 and Shs1 million a month, providing Derrick with additional income to cover household expenses, including food, rent and utilities.
"It is a side gig for me, and it is making wonders," Derrick told The Independent on June 27. "I am planning to open more hotspots in other places to boost my income."
His experience highlights the rise of a new category of informal digital entrepreneurs across Uganda, where individuals are turning internet resale into small businesses while helping bridge gaps in connectivity for communities unable to afford traditional broadband packages.
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The growth of these neighbourhood hotspots reflects a wider reality in Uganda's digital economy. Internet access has become increasingly central to daily life, with traders using online platforms to advertise products, communicate with customers, receive mobile money payments, monitor market prices and grow businesses through social media.
"With this WiFi I am able to communicate with my friends and stream videos and send photos with ease without worrying that I will be cut off," said Fred Mukasa, a user.
But the rapid expansion of informal Wi-Fi businesses has placed them at the centre of a regulatory debate over consumer protection, cybersecurity and the future structure of Uganda's internet market.
UCC crackdown
The Uganda Communications Commission (UCC) has launched a nationwide enforcement campaign targeting individuals and businesses operating public Wi-Fi hotspots without the required licences.
In a statement issued on July 7, UCC said the operation would be conducted in partnership with licensed Internet Service Providers (ISPs), telecommunications operators and other government agencies.
"The Uganda Communications Commission, in collaboration with licensed Internet Service Providers (ISPs), licensed operators and relevant government agencies, announces targeted enforcement against illegal public Wi-Fi providers," the statement said.
Though the regulator had earlier indicated that it would not prevent consumers from reselling internet access through neighbourhood hotspots, it said the campaign is intended to ensure that public internet providers comply with communications laws and regulatory standards while protecting users.
"The goal is to foster a safe digital environment in which all users can trust the services they receive," the Commission said.
The enforcement follows the rapid growth of informal Wi-Fi operators in residential areas, trading centres and neighbourhoods where customers can access unlimited internet for as little as Shs1,000 a day.
A market responding to demand
Technology experts argue that the growth of these businesses reflects an unmet market need rather than simply regulatory failure.
Haruna Mawanda, an IT enthusiast with a PhD in Computer Science and Artificial Intelligence, said the emergence of community Wi-Fi operators demonstrates strong consumer demand for cheaper connectivity.
"If there wasn't demand, the business wouldn't exist," Mawanda told The Independent on July 9. "The fact that these hotspot businesses continue to grow means they are solving a real problem for communities that cannot afford conventional internet packages."
He said regulators and telecom operators should explore partnerships with hotspot entrepreneurs instead of focusing only on enforcement.
"They have identified friction in the ecosystem and created a solution. Instead of fighting them, arresting them or pushing them out of business, partner with them, formalise their operations and allow everyone to benefit," he said.
Mawanda believes formal partnerships could help Uganda expand internet access, particularly among low-income households and communities where fixed broadband remains unaffordable.
Bridging the affordability gap
For many users, community hotspots have become an alternative to expensive monthly subscriptions and limited mobile data packages.
Students, small traders and casual internet users often prefer paying Shs1,000 for unlimited daily access rather than purchasing mobile bundles that restrict usage.
Mobile operators including MTN Uganda and Airtel Uganda offer daily data packages ranging from Shs500 to Shs5,000, but many are capped by usage limits.
Airtel's Shs1,000 daily bundle, for example, provides about 170MB valid for 24 hours, while a Shs3,000 package offers about 1.5GB.
Neighbourhood hotspots, by comparison, often provide unlimited access at the same Shs1,000 price point, creating an affordability advantage that has accelerated their popularity.
Telecom operators push back
However, telecommunications companies argue that informal resale creates unfair competition and violates consumer package agreements.
MTN Uganda Senior Manager, Corporate Communications, Rhona Arinaitwe, said reselling internet purchased under consumer packages breaches service conditions.
"It is against the terms of service to resell these packages. It should not be tolerated," she said.
Airtel Uganda has also described the practice as illegal and disruptive to the telecommunications market.
The operators argue that consumer packages are designed for individual use and that widespread resale could affect network performance by increasing congestion.
The regulatory question
Uganda's communications laws do not specifically refer to "selling Wi-Fi" or "Wi-Fi hotspots", but they regulate the provision of telecommunications services.
Under Section 22 of the Uganda Communications Act, 2013: "A person shall not establish a telecommunications station, provide telecommunications services or construct, maintain or operate telecommunications apparatus without a licence issued by the Commission."
Because internet access falls within the broader definition of telecommunications services, regulators argue that some hotspot operations may require authorisation. However, the law does not explicitly prohibit selling Wi-Fi.
A hotel, café, airport or university offering Wi-Fi as an amenity differs from a business purchasing internet capacity and commercially reselling access to the public.
The central regulatory question is whether such activity constitutes the provision of a telecommunications service requiring a licence.
From enforcement to formalisation
The crackdown has raised questions because it appears to differ from earlier comments by Julianne Mweheire, UCC's director of economic regulation, content and consumer affairs.
Speaking to Daily Monitor on June 13, 2026, Mweheire said the Commission would not stop consumers from reselling internet access through neighbourhood hotspots because the practice reflected growing demand for affordable connectivity.
"We're not going to stop consumers from accessing services," she was quoted as saying.
But UCC has since directed unlicensed operators to stop immediately or regularise their operations by obtaining the necessary licences. It is now not clear which type of licences people that have set up these 'hot spots' need to secure.
Security and quality concerns
UCC says unlicensed operators expose consumers to unreliable services, cybersecurity threats, data privacy risks and limited avenues for complaints.
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Mawanda, however, agrees that regulation could improve accountability, particularly as more people rely on public Wi-Fi networks.
He warned that unsecured networks could expose users to hacking, malware and theft of personal information.
"As more people use these hotspots, complaints about hacking and cybercrime will inevitably increase. Eventually, those complaints end up with the regulator," he said.
Formal registration, he argues, would allow authorities to identify operators and respond more effectively to consumer concerns. It could also help telecom companies manage network demand.
When a single broadband connection is redistributed among many users, congestion can increase and affect service quality.
"If network operators know there are registered hotspot providers in a particular area, they can provision enough bandwidth and plan their networks accordingly," he explained in an interview with this reporter.
Digital economy dilemma
This development comes at the time Uganda's internet market continues to expand, with UCC reporting 18.5 million internet subscriptions and 47.1 million active mobile subscriptions as of December 2025.
The regulator has also identified wider digital inclusion as a national priority, but experts argue that achieving that goal requires recognising the role of small internet entrepreneurs.
They suggest community hotspot operators could be integrated into the formal ecosystem through partnerships with licensed ISPs, similar to Uganda's mobile money agent model.
For Derrick, the debate goes beyond regulation. His three hotspots represent both an income opportunity and an affordable gateway to digital services for customers.
And,as the country moves deeper into the digital economy and prepares for emerging connectivity technologies, including satellite broadband, Mawanda argues that collaboration rather than confrontation will determine whether affordable internet reaches more citizens.
