• The 30 July handover fulfilled ATC Uganda’s statutory obligation based on 2% of its gross annual revenue
  • Half goes to the Consolidated Fund, while UCC retains half to finance universal-access initiatives

The fact

American Tower Corporation (ATC) Uganda has remitted UGX20.9 billion to the Uganda Communications Commission (UCC), fulfilling its statutory obligation to pay 2% of its gross annual revenue to the government. The handover took place at UCC’s headquarters in Kampala on 30 July. ATC Uganda provides shared telecommunications infrastructure used by network operators.

UCC said half of the contribution goes to the Consolidated Fund, while the other half is retained by the commission to finance initiatives under the Uganda Communications Universal Service and Access Fund (UCUSAF). The fund supports communications infrastructure, internet connectivity and digital-skills programmes, with a mandate that includes extending ICT services to rural and remote areas that may not be commercially viable through market investment alone.

The assessment

ATC Uganda’s payment puts money into Uganda’s universal-access funding system, but it does not mean new telecom infrastructure has already been built. UCC has not identified any towers, connectivity projects or contracts that will be funded from this payment.

Half of the UGX20.9 billion goes to the Consolidated Fund, while the other half remains with UCC to support UCUSAF programmes. What matters next is how that money is spent. The available information does not yet show which projects will receive funding, where they will be located or when work will begin.

For BTW readers, the payment is therefore the start of the funding process rather than the end result. Its practical value will become clearer when UCC identifies projects, awards contracts and shows what new infrastructure or services are delivered in underserved areas.

What to watch

Watch for UCUSAF to name the projects that will receive funding, where they will be built and when contracts are awarded. UCC should also show how much money has been committed and what infrastructure has actually entered service. Coverage and usage in the funded areas will then show whether the levy is improving access.