Uganda`s largest mobile phone dealer, Simba Telecom, has recently joined the Private Sector Foundation of Uganda (PSFU) in a bid to promote policy advocacy towards market competition within the East African country.
This is according to Patrick Bitature, CEO and founder of Simba Telecom, who believes more market players will create competition and build positive growth in the economy. He says the telecommunications sector is relatively young, yet numerous market players have created a very vibrant and competitive market place, which has brought strong benefits to Uganda`s economy.
"MTN Uganda, which only started business in Uganda in 1988, is the largest single tax payer in the country by a big margin. MTN provides direct and indirect employment to more than 12 000 people," he says.
Bitature attributes Uganda`s thriving telecoms market to the growing number of telecoms players, which is creating a strong sense of competition.
"Considering the relatively small market size of Uganda, having two fixed-line operators and three mobile operators, shows that a relatively competitive regulatory framework exists compared to most other markets internationally," he says.
Global standards
Mobile tariffs, compared to global standards, are lower than they have ever been, which, he says, is evidence of healthy price competition. The Ugandan telecoms market also has a reasonable share of product diversity in the market as a result of competition, he says. "Compared to other African markets, Uganda is in top 10% in terms of product range and diversity."
Bitature says the depth and breadth of mobile trade distribution alone has over 14 000 points of presence where services can be bought, which is very high. "Only Coca Cola has more distribution."
He also notes that 2.5G has been unveiled and 3G is about to launch, despite a very small mobile data market, showing strong competitive attributes.
Despite a competitive telecoms market, he says, prices are still quite high because of Uganda`s lack of access to international sub-marine fibre, which makes the sector reliant on expensive satellite routes.
Bitature says he decided to join the PSFU as it is a well respected body which creates a platform where the private sector can actively engage with the public sector to influence change and policy at government levels. "The formal private sector in Uganda is small and needs agents of change that will collectively make a difference for the country," he says.
Companies and associations affiliated with foundation will benefit from the World Bank and IMF funds available through the projects managed by PSFU, Bitature says. According to a PSFU press release, the benefits include a Technology Acquisition Fund for exporters, business development services which manage a $70 million competitiveness grant that includes training of associations and individual enterprises, the Better Business Behaviour Award, and the Business Plan Competition.
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