UCC could reverse spectrum pricing

The Uganda Communications Commission (UCC) could reverse its new radio spectrum pricing policy if appeals from sector players are successful.

"There are companies that raised concerns that the new fees are high," UCC Executive Director Patrick Masambu said at a press conference. "We are engaged in discussions with them to see what can be done. If, indeed, they can prove to us that they are overly high, we will reconsider."

Over the past five months, telecommunications companies and wireless data service providers in Uganda have been engaged in a quiet war with the regulator over the new pricing structure for radio spectrum that will see rates increase for operators and, in turn, end-users.

The new price plan became effective on July 1, according to a UCC communication to service providers. Despite invoices reflecting that new prices have been issued, Masambu's admission of a possible reversal indicates that the July decision is not final.

Service providers have taken issue with the rate at which the UCC hiked fees, saying it is too drastic, with increases ranging from 15 percent in some instances to 1,000 percent in others. The new pricing would have worked better if the fees were slowly increased over a given time period, they said.

Masambu said the UCC carried out a study, which informed the new pricing structure. The new pricing is reasonable, he said, considering that fees have been stagnant for a long time.