Business
MTN delivers Sh54.27b to UCC’s universal access fund
“It has nearly doubled in less than 10 years. So, it's growing at a very reasonable pace,” said Nyombi Tembo, the ED, UCC. He further confirms that the resources have been critical towards the provision of information and communications technology (ICT) services across the underserved regions in Uganda, for which UCUSAF stands for.
Half of the Sh54.27b is set to contribute to the ongoing UCUSAF initiatives while half will go to the consolidated fund to support respective government programmes.
By: Ivan Tibenkana, Journalist @New Vision
KAMPALA - MTN Uganda Ltd has cashed in its annual 2% contribution to UCC, marking extra replenishment for the Uganda Communications Universal Service and Access Fund (UCUSAF).
During the official contribution event at UCC headquarters Tuesday, the Commission informed that the telecom sector has maintained proper compliance compared to other sector players such as broadcasters.
Half of the Sh54.27b is set to contribute to the ongoing UCUSAF initiatives while half will go to the consolidated fund to support respective government programmes.
According to UCC, the fund has grown just as much as the sector.
“It has nearly doubled in less than 10 years. So, it's growing at a very reasonable pace,” said Nyombi Tembo, the ED, UCC. He further confirms that the resources have been critical towards the provision of information and communications technology (ICT) services across the underserved regions in Uganda, for which UCUSAF stands for.
While the fund covers several programmes, major focus has been put on the flagship programme, ICT in Education where the Commission reveals that it has been providing computers to close to 100 schools per year, coupled with internet connectivity and paid for bandwidth. Close to 80% of government-aided schools have benefited from the initiative, according to UCC.
Sector perspective
As the country maintains its push for robust digital inclusion, part of the success is linked to the performance of the telecoms sector whose revenue further feeds into respective development initiatives.
However, MTN has raised tax-leaning concerns that arise not only pressure and limitations to sector performance but even the uptake of digital services.
“We have had engagements with the Ministry of Finance and the relevant stakeholders in regard to what needs to be done to bring down the cost of devices. In Uganda, there's currently a 10% import duty that's normally imposed on devices which is not existent in the rest of the region,” said Sylvia Mulinge, the CEO, MTN Uganda.
While the fund covers several programmes, major focus has been put on the flagship programme, ICT in Education where the Commission reveals that it has been providing computers to close to 100 schools per year, coupled with internet connectivity and paid for bandwidth. Close to 80% of government-aided schools have benefited from the initiative, according to UCC.
Sector perspective
As the country maintains its push for robust digital inclusion, part of the success is linked to the performance of the telecoms sector whose revenue further feeds into respective development initiatives.
However, MTN has raised tax-leaning concerns that arise not only pressure and limitations to sector performance but even the uptake of digital services.
“We have had engagements with the Ministry of Finance and the relevant stakeholders in regard to what needs to be done to bring down the cost of devices. In Uganda, there's currently a 10% import duty that's normally imposed on devices which is not existent in the rest of the region,” said Sylvia Mulinge, the CEO, MTN Uganda.
She also says that there are efforts to ensure that the tax burden doesn’t stretch over to the customers as they seek to bring down the cost of devices.
She further explains that the ideal point is to jointly work with local manufacturers to bring down the prices of entry-level smartphones to less than $40 (about Sh146,697), countering the current price point which is above $80 (about Sh293,395).
The development comes at a time when UCC has just released a sector performance study that illustrates how limiting the current tax regime is towards the sector growth and consumer freedom.
The study notes that despite substantial contributions to government revenue estimated at over 12% of national VAT and 40% of total excise duty collections, the telecom sector’s relative contribution to Gross Domestic Product (GDP), the value of economic activities within the country, has declined, signalling that current tax policies may be undermining long-term sustainability.
She further explains that the ideal point is to jointly work with local manufacturers to bring down the prices of entry-level smartphones to less than $40 (about Sh146,697), countering the current price point which is above $80 (about Sh293,395).
The development comes at a time when UCC has just released a sector performance study that illustrates how limiting the current tax regime is towards the sector growth and consumer freedom.
The study notes that despite substantial contributions to government revenue estimated at over 12% of national VAT and 40% of total excise duty collections, the telecom sector’s relative contribution to Gross Domestic Product (GDP), the value of economic activities within the country, has declined, signalling that current tax policies may be undermining long-term sustainability.