Naidu says in order to increase penetration from its current 35% level – the cost of using mobile phones must continue to be reduced.
Naidu added that the continued high call rates and the overall cost of mobile phones in the country have limited the growth of the sector, but that with efforts by operators, the country can see a boom to the industry.
Naidu says if telecom operators are by the supported Ugandan government and the Uganda Communications Commission (UCC), mobile penetration can grow by at least 1% monthly.
“A price ceiling affects affordability. Putting rates at Shs2 (less than UD$1) per second will make it too expensive for customers in this era of rising commodity prices. Market forces should be left to control prices,” says Naidu.
Uganda has been in the midst of continued price wars, which telecom analysts believe will assist with the growth of the industry. A number of Uganda telecom operators believe the price war will adversely affect their profit margins.
“For the customer, it is a positive to have price wars because that means the costs they are charged is reduced and overall, companies should see it as a way of increasing new subscribers,” says Jonathan Yingale, a Kampala-based IT professional