Successful Liberalization Transforms Uganda’s Mobile Market, Pyramid Research Finds

CAMBRIDGE, Massachusetts - Mobile penetration in Uganda is expected to increase from 39.0 percent in 2009 to 70.7 percent by 2014, prompted by the successful liberalization of the sector and increased competition, according to a new report from Pyramid Research (www.pyr.com), the telecom research arm of the Light Reading Communications Network (www.lightreading.com).

Communications Markets in Uganda offers a precise, incisive profile of the country’s converged telecommunications, media, and technology sectors based on proprietary data from our research in the Ugandan market. The 26-page report provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies such as WiMax, IPTV, and VoIP. This executive study provides a comprehensive view of the Ugandan communications market by analyzing key trends, evaluating near-term opportunities, and assessing upcoming risks factors. Download an excerpt of this new report here: www.pyramidresearch.com/downloads.htm?id=18&sc=PR050409_CIRUG

Although Uganda is one of the smallest markets in the region, it is also one of the fastest growing markets in Africa and the Middle East, notes Sylwia Boguszewska, analyst at Pyramid Research and author of the report. In the next five years, Pyramid anticipates Uganda will experience the second highest percentage increase in terms of mobile subscriptions among the African countries (after Cameroon). “Mobile penetration rose from just 1.9 percent at year-end 2002 to an estimated 39.0 percent in 2009,” she says. “Pyramid expects it will increase further to reach 70.7 percent penetration by 2014, while the number of mobile subscriptions will exceed 27 million,” she adds.

The Ugandan telecom sector has gone through a major transformation, notes Boguszewska. “As a result of a successful liberalization process, Uganda now boasts five mobile operators, three of which are well-established: MTN Uganda, Uganda Telecom, and Zain Uganda,” she explains. “They were joined by Warid Telecom, which entered the market in February 2008, and Orange Uganda, which launched in March 2009,” she adds. Anupam is due to enter soon, increasing the number of mobile operators to six.

Increased competition is driving down prices, with new entrant Warid being particularly aggressive to attract subscribers, and MTN’s Zone pricing scheme has also shown high adoption. “Last year, the three mobile operators — MTN Uganda, UTL, and Zain — commanded 85 percent of mobile market subscribers, while Warid Telecom, despite its late entry in 2008, managed to gain a significant 15 percent market share,” Boguszewska says.

Communications Markets in Uganda is part of Pyramid Research’s Africa and the Middle East Country Intelligence Report Series. Pyramid Research’s premium Country Intelligence Reports are the industry’s best available analysis on market trends, regulatory environments, and competitive dynamics for 60 countries worldwide.

Download an excerpt of this new report here: www.pyramidresearch.com/downloads.htm?id=18&sc=PR050409_CIRUG

Communications Markets in Uganda is priced at US$990 and can be purchased online here: www.pyramidresearch.com/store/CIRUGANDA.htm?sc=PR050409_CIRUG or through Dave Williams via email at dave.williams@pyr.com or telephone at +1-858-485-8870.

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About Pyramid Research

Pyramid Research (www.pyr.com) offers practical solutions to the complex demands our clients face in the telecommunications, media, and technology industries. Our analysis is uniquely positioned at the intersection of emerging markets, emerging technologies, and emerging business models, powered by the bottom-up methodology of our market forecasts for over 100 countries — a distinction that has remained unmatched for more than 25 years. As the telecom research arm of the Light Reading Communications Network, Pyramid Research works with Heavy Reading, providing the communications industry’s most comprehensive market data, trusted research and insightful technology analysis.

About Light Reading

Founded in 2000, Light Reading (www.lightreading.com) is the leading online media, research, and focused event company serving the US$3 trillion worldwide communications market. Lightreading.com is the ultimate source for technology and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading’s research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces nearly 20 targeted communications events including TelcoTV, Ethernet Expo New York and Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as focused one-day events tailored for cable, mobile, and wireline executives. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.

About TechWeb

TechWeb (techweb.com/aboutus), the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events, Interop, Web 2.0, Black Hat, and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, and Wall Street & Technology magazines. TechWeb also provides end-to-end services including next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than US$2.5 billion.

*13.3 million business decision-makers: based on number of monthly connections

About United Business Media Limited

UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting and monitoring; and, the development and monetization of B2B communities and markets. UBM’s businesses inform markets and serve professional commercial communities — from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists — with integrated events, online, print and business information products. Our 6,500 staff in more than 30 countries are organized into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently. For more information, go to www.unitedbusinessmedia.com.

Press contact: Jennifer Baker +1-617-871-1910 jbaker@pyr.com

Source: Pyramid Research

Jennifer Baker, Pyramid Research, +1-617-871-1910, jbaker at pyr.com