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September 9, 2010

Telecom market revenues in Uganda to reach $1.23bn in 2015: Pyramid

Total mobile subscriptions in Uganda to reach 20.9 million in 2015

By CBR Staff Writer

The telecom market in Uganda generated $638m in 2009 and is estimated to grow at CAGR of 11.5% and reach $1.23bn by 2015, according to a new report from Pyramid Research

The Uganda’s fixed broadband services is projected to join the mobile segment as new undersea cables land in the coasts of East Africa and the terrestrial fiber rings start reaching the country.

The report said that Ugandan mobile market is highly competitive, but the low level of mobile penetration at 32.8% in 2009 indicates that there is still much demand to be fulfilled.

The main obstacle to increasing penetration has been the provision of affordable last-mile access to rural areas, where the majority of the Ugandans live and where income levels are low to justify individual subscriptions and handset ownership.

However, the report estimates that mobile subscriptions in Uganda to double during forecasting period and grow from 10.7 million in 2010 to 20.9 million in 2015, with a penetration rate of 52.7%.

Pyramid analyst Kerem Arsal said that the real opportunity, however, lies in the broadband segment, and data revenue and adoption in East Africa will grow fast with the decline in the costs of international bandwidth due to the new undersea cables.

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"Adding to this the unfulfilled demand for Internet, the broadband market will comprise a quarter billion dollars in 2015, and fixed broadband will be the primary source of revenue growth in Uganda and will generate $229m in 2015," Arsal said.

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