The Uganda Communications Commission (UCC) has intensified its crackdown on unlicensed public Wi-Fi operators, warning businesses that resell internet connectivity without authorisation to regularise their operations or risk enforcement action.
The regulator says approximately 4,000 unlicensed internet distributors are operating across the country, serving an estimated 1.5 million customers who access cheaper internet through public Wi-Fi hotspots.
In a clarification published on X, UCC said its enforcement targets commercial internet resale rather than ordinary household internet sharing.
The commission explained that a public Wi-Fi hotspot provides internet access beyond a private household, including in shops, restaurants, hotels and other shared spaces.
It said the distinction lies in whether an internet subscription is being used for personal purposes or commercially resold to other users.
Under the current arrangement, some operators purchase internet packages from licensed telecommunications companies and redistribute the connectivity to customers through routers, selling access through mobile money payments and physical or digital vouchers.
UCC argues that such commercial activities require appropriate authorisation under Uganda’s communications regulatory framework.
The commission has raised concerns about consumer protection, cybersecurity, tax compliance and unfair competition against licensed telecommunications companies that invest in infrastructure and meet regulatory obligations.
UCC estimates that the government loses about Shs148 billion annually in tax revenue through the unlicensed internet distribution business. The regulator has also warned that customers using unregistered providers may struggle to obtain assistance or compensation when services fail.
According to the commission, the crackdown is intended to ensure that internet distributors meet minimum standards of accountability, service quality and reliability.
However, UCC is also pursuing consultations to establish how small-scale operators can continue providing affordable internet services legally.
On October 20, 2026, UCC Executive Director George William Nyombi Thembo met representatives of the Kampala City Traders Association (KACITA) and announced a registration exercise for Wi-Fi hotspot operators.
The exercise is intended to establish the number of operators, their locations, equipment types and other operational details to help the regulator develop appropriate compliance arrangements.
A multi-stakeholder committee was subsequently established, bringing together KACITA, hotspot operators, mobile network operators, internet service providers and the Uganda Revenue Authority.
At a meeting on October 27, the committee examined possible licensing arrangements, including public service provider licences, communal access models and partnerships with already licensed telecommunications companies.
UCC encouraged hotspot operators to negotiate commercial arrangements with licensed internet service providers and mobile network operators as one possible route to compliance.
The commission said the appropriate arrangement would depend on the nature of each business and the services it provides.
The consultations also addressed equipment approval, registration requirements and enforcement measures while discussions continue.
The crackdown has attracted parliamentary attention, with KACITA petitioning Parliament on October 28, arguing that enforcement measures could threaten thousands of small businesses and livelihoods.
The traders called for affordable licensing requirements and clearer guidelines on how operators could regularise their businesses.
During a meeting of Parliament’s Committee on Information, Communication Technology and National Guidance, MPs urged UCC and the Ministry of ICT to develop practical compliance requirements that would allow operators to continue working legally.
ICT Minister Chris Baryomunsi’s colleague and Minister of ICT and National Guidance, according to the parliamentary report, was involved in the discussions, while Minister of State for ICT Godfrey Kabbyanga had earlier engaged stakeholders on the matter.
UCC maintains that registration alone does not amount to a licence or automatically authorise commercial internet resale.
The commission’s consultations are intended to find a regulatory arrangement that accommodates eligible operators while protecting consumers, licensed service providers and the country’s telecommunications infrastructure.
