Uganda Communications Commission says more than 4,000 unlicensed operators are reselling internet services, costing the government an estimated Shs148 billion in annual tax revenue.
The Uganda Communications Commission (UCC) has given unlicensed public Wi-Fi hotspot operators seven days to halt their services and remove illegal equipment, warning of a nationwide enforcement campaign targeting unauthorised internet resellers.
The crackdown, announced on Tuesday by UCC executive director Nyombi Thembo, targets operators who buy commercial or residential broadband from licensed telecommunications companies and resell internet access to the public without the required regulatory authorisation.
According to Thembo, more than 4,000 unlicensed operators are involved in the practice, which the commission estimates costs the country approximately Shs148 billion in lost annual tax revenue.
The enforcement exercise will involve identifying and dismantling illegal installations and seizing routers and other related equipment, UCC said.
“We are giving all unauthorised Wi-Fi hotspot operators a seven-day ultimatum to halt their services and remove any illegal apparatus before our nationwide enforcement campaign begins,” Thembo said.
The commission said the move follows consultations with telecommunications operators, the Uganda Revenue Authority (URA) and members of the Wi-Fi Hotspot Association over regulatory challenges associated with the resale of internet services.
Under the Uganda Communications Act, 2013, providers of telecommunications services to the public must obtain the relevant licence from UCC.
The regulator argues that unlicensed resellers undermine legitimate internet service providers, create unfair competition and expose consumers to potential cybersecurity, data privacy and consumer protection risks.
It has also raised concerns about the installation of unauthorised network equipment on public utility poles, warning that poorly managed infrastructure can create physical safety hazards.
UCC offers path to legal operations
Despite the planned crackdown, UCC says it intends to give operators willing to comply with the law an opportunity to regularise their businesses.
The commission will begin guidance sessions on Friday, 16 October 2026, to help interested operators understand the applicable licensing frameworks and transition to lawful operations.
The initiative comes as affordable internet access and wider digital inclusion remain important to Uganda’s digital development. Informal Wi-Fi hotspots can provide relatively cheap connectivity in residential neighbourhoods, trading centres and other areas where consumers may struggle to afford individual broadband subscriptions.
However, UCC maintains that expanding access must not come at the expense of licensing requirements, consumer safeguards and the integrity of telecommunications infrastructure.
The challenge for the regulator will be to enforce the law while ensuring that consumers who depend on affordable hotspot services are not unnecessarily cut off from the internet.
For operators, the seven-day deadline leaves little time to assess their compliance status and determine whether they can continue operating under an appropriate licence or other authorised arrangement.
UCC has urged unauthorised providers to cease operations immediately and advised consumers to obtain internet services from providers licensed by the commission.
The enforcement campaign is expected to test how Uganda balances the growth of low-cost internet distribution with regulation, fair competition, tax compliance and consumer protection.
