Michael Minges and Tim KellyThe views expressed are those of the authors and do not necessarily reflect the opinions of the ITU or its membership. The authors can be

contacted at Michael.Minges@itu.int and Tim.Kelly@itu.int.

ITU Internet Case Studies

• Seek to understand factors which accelerate or retard the development of the Internet in different environments

• Obtain market information• Through comparative analysis, advise policy

makers and regulatory agencies • Analyze spread of Internet in different sectors

of the economy such as health, education and commerce as well as government

• The first round of studies include Uganda, Nepal, Egypt and Bolivia.

Uganda Overview

Population 22 million% Population < 14 50%Life expectancy <40 yearsRural population 85%Population in capital 4%GDP per capita ~ US$ 300 (LDC)Adult literacy 64%

Households withelectricity

4%

Source: ITU from World Bank, UBOS data.

Telecom policy

• Reformed, privatized and liberalized

• Private mobile operator – CelTel, May ‘95

• Regulator created – UCC, 1998

• Second network operator introduced – MTN Uganda, Oct. ‘98

• Incumbent part-privatized – UTL, Feb. 2000

P. Masambu, Executive Director, UCC

Telecom market

• Low fixed penetration– Low investment, high

tariffs

• Rising mobile penetration– 2 operators, pre-paid,

foreign investment

• First African country where mobile>fixed

0.67

0.39

0.290.25

0.210.16

0

20

40

60

80

100

120

140

160

'94 '95 '96 '97 '98 '99

Fix

ed

Mobile

Per 100 inhabitants

Telephone subscribers, Uganda (000s)

Source: ITU from UTL, MTN, CelTel data.

Internet market

• Status– 8 licenses issued, 4 active

ISPs– Incumbent not yet providing

ISP service– 4’000 subscribers, ~25’000

users– Foreign investment– Wireless Internet could prove

significant

• Recommendation– ISPs should peer locally,

perhaps via an independent Internet exchange point

                            

Internet tariffs

• Status– Not many options– Telephone usage

charges– Long distance outside

Kampala

• Recommendations– A nationwide dial code

for Internet access should be established

– Revenue-sharing of telephone calls charges should be encouraged

020406080

100120140160

Dial-up Internet access charges, US$ per month

ISP charge

Telephone usage

Telephone subscription

30 hours per monthSource: ITU from UTL, InfoCom data.

Donor projects

Donor CounterpartUS AID Makerere Univ.World Bank Min. EducationDenmark UBOSCanada UCSTItaly Min. HealthUNESCO UCSTADB Makerere Univ.ADB Min. HealthNorway Makerere Univ.

• Status

– A number of IT projects are taking place with the assistance of bi-lateral and multi-lateral donor agencies and different sectors of Uganda government

• Recommendation

– Greater co-ordination of these different efforts is required

International & BilateralIT projects for Uganda

Source: ITU adapted from various.

Public Access• Status

– No explicit policy for Internet

– Telephone line & payphone targets

– Around 10 cybercafés in Kampala

– Uganda Posts provides e-mail in 3 towns

– Donor projects

• Recommendations– Emphasis should be

placed on developing public access points such as telecentres, cybercafés, utilising for instance existing community locations such as post offices, schools, health centres, etc.

Domain name

• Status– Uganda OnLine

registrar– Registration US$50

per year

58

1730

113

139

1995 1997 1999

• Recommendations– Registrar should be

neutral– Costs should

encourage development of web sites in Uganda

Uganda (.ug) hosts

Source: ITU adapted from Network Wizards.

Sector absorption

Distribution of Internet Users

Source: Charles Musisi, March 1999

Business 40%

Academic 25%

NGOs, UN,

World Bank,

etc. 30%

Govern-ment 5%

• Recommendations– Awareness

• Promoting Internet through seminars, trade shows etc.

– Content• Local content in

local languages– E-Government

• Government ministries should get on line

– E-Commerce• Creation of an e-

Commerce task force

State of Internet Uganda

0

1

2

3

4Pervasiveness

Dispersion

Absorption

Connectivity

Organizational

Sophistication

Note: Range is 0 = (non-existent) to 4 (highly developed)

Source: ITU adapted from Mosaic Group.

www.itu.int/ti/casestudies/