Uganda Telecommunications Corporation Limited is a state-owned corporation responsible for providing telecommunications services in Uganda.
Its primary objective is to provide universal access to telecommunications services.
The corporation was established in 1996, marking a significant milestone in Uganda's telecommunications sector.
Uganda Telecommunications Corporation Limited has a significant presence in the country, with a wide range of services including voice, data, and internet services.
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Leadership Structure
The leadership structure of Uganda Telecommunications Corporation Limited has undergone significant changes over the years.
Stephen Kaboyo was the chairman of the board of directors in 2014, but his role wasn't the only one that changed.
Mark Shoebridge was appointed as managing director temporarily in May 2015, taking on this role as he was leaving his position as chief fixed services officer to lead operations in Vodacom Nigeria.
He was re-appointed as managing director effective February 2016, after returning to Uganda to drive the turnaround of the struggling operator.
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The company has a new leadership structure as of November 2022, with Dr. Grace Ssekakubo serving as the chairman of the board of directors.
The other directors of the company are Ramadan Ggobi, Dr. Aminah Zawedde, Tom Sekatwe, Jimmy Adiga, Maximelia Byenkya, and Agnes Ojiambo.
Margaret Lutwama Mukiibi is the current Chief Operating Officer (COO) of the company.
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Company Issues
Uganda Telecommunications Corporation Limited has faced several challenges over the years. The company has struggled to maintain a competitive market share due to the entry of new players in the telecommunications industry.
The corporation has been working to improve its services, including increasing its network coverage and improving customer service. This has led to a slight increase in customer satisfaction.
However, the company still faces significant financial challenges, including a large debt burden and declining revenue.
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Insolvency and Receivership
In February 2017, the government of Libya-owned subsidiary UCom unilaterally pulled out of Uganda Telecom Limited, forcing the Uganda government to assume sole control.
The Uganda government placed the telco under receivership in April 2017, marking a significant turn of events for the struggling company.
In December 2017, the Uganda government announced plans to sell a majority stake in the troubled company, sparking interest from investors worldwide.
Nearly a dozen investors from Europe, China, South Africa, and the USA expressed interest in acquiring a stake in UTL, but only one emerged as a capable bidder.
Mauritius Telecom submitted a bid of $45 million upfront, with another $100 million over the next 36 months, for a 69-31 majority shareholding.
However, the deal fell through, and the Uganda government sought a new buyer.
In a surprising twist, Taleology Holdings GIB Limited of Nigeria was selected to operate UTL for the next 20 years, but they failed to remit the required funding to effect the acquisition.
As a result, UTL went back on the market, and a new buyer was being sought.
In January 2020, Ruth Sebatindira was appointed as the Administrator of Uganda Telecom Limited, marking a new chapter in the company's history.
Bemanya Twebaze handed over the administration of UTL to Sebatindira on January 6, 2020, bringing an end to his tenure.
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Company Rebrand
Uganda Telecommunications Corporation Limited (UTCL) was previously known as Uganda Telecom Limited (UTL) before it was rebranded in 2021.
The company's financial struggles led to its nationalization by the Ugandan government, which then incorporated UTCL in April 2021.
UTCL acquired UTL's assets, including its 2G, 3G, and 4G frequency spectrum, for a total consideration of USh256.9 billion (approximately US$65.7 million).
The government of Uganda had previously settled a US$15.6 million debt owed by UTL to the Trade and Development Bank in 2020.
This acquisition brought the total price to US$81.3 million (approximately USh316 billion), which included the debt settlement.
UTL ceased to exist after the transfer of its assets to UTCL in November 2022.
The Ugandan government is now working with Rowad Capital Commercial LLC (RCC), a Dubai-based company, to revamp UTCL and improve the quality of telecom services in the country.
UTCL is expected to benefit from significant investments in financial resources and technical expertise through this partnership.
The partnership aims to modernize UTCL's infrastructure and make it a strong and viable competitor in the Ugandan telecom market.
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Uganda Telecom News
The government of Uganda has signed a Memorandum of Understanding with Rowad Capital Commercial LLC to acquire 60% of Uganda Telecommunications Corporation Limited's shares.
The partnership aims to revitalize UTCL, which has been facing financial difficulties, and inject significant resources and expertise to modernize its infrastructure.
The government will retain 40% of the shares, and the partnership is expected to improve the quality of telecom services in the country.
UTCL was struggling after acquiring Uganda Telecom Limited in 2022 for approximately 356.8 billion shillings, or $95.5 million.
The acquisition of 60% of UTCL's shares by Rowad Capital Commercial LLC is expected to strengthen UTCL's position in the market against competitors like Airtel and MTN.
The partnership is a strategic move by the government to reposition UTCL effectively on the market.
Rowad Capital Commercial LLC is a Dubai-based engineering and construction company that will work with the government to manage UTCL.
UTCL has been facing significant challenges, and the government has been searching for a partner to inject resources and expertise to revive the company.
The partnership is expected to benefit UTCL with significant investments in financial resources and technical expertise.
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