The Uganda Communications Commission (UCC) has launched a telecommunications market assessment to boost industry competitiveness and identify barriers to competition, creating a better business environment.
At a stakeholder meeting at the UCC head office in Bugolobi, telecom operators were introduced to consultants from Tilil Technologies Limited and Acacia Economics (PTY) Limited. This joint consultancy will define the telecommunications market and assess market power, aiming to evaluate competition, identify market participants, and analyze their services and products.
Globally, regulators conduct such studies to guide regulatory actions, enhance industry competitiveness, and identify competition barriers to prevent non-competitive practices that lead to higher prices and fewer choices.
Led by Ms. Shaista Goga, the consultants presented a framework and roadmap for data collection, noting the significant market changes due to digitalization and new technologies. The proactive study aims to understand the market comprehensively and enhance competitiveness.
The study will cover all critical telecom elements, including fixed lines, mobile, broadband, tower markets, and related services. It will identify products and services in the market, understand barriers to entry and expansion, and analyze substitutes, including alternative technologies.
By examining market share, barriers, and competitive dynamics, the consultants will determine if certain companies have excessive market power and how to maintain fair competition.
Under the Uganda Communications Act 2013, the UCC must encourage and enable competition in the communications sector through regulation and licensing. To do this effectively, the UCC needs a thorough understanding of market features, competition levels, sub-markets, dominant players, and the potential for market dominance abuse.
