Minister Baryomunsi: High Cost of Internet and Smart Devices Hinders Uganda’s Digital Transformation Journey

Dr. Chris Baryomunsi, the Minister for ICT and National Guidance, has highlighted that the high cost of purchasing smart devices such as phones continues to impede Uganda’s digital transformation journey.

Dr. Chris Baryomunsi emphasized the progress made in embracing technology in Uganda, acknowledging that the situation today is significantly better than it was a decade ago. He noted improvements in connectivity and the extension of internet access to various parts of the country. However, he highlighted the persistent challenge of the high cost of smart devices such as smartphones, iPads, and laptops, which remains prohibitive for some segments of society.

Dr. Chris Baryomunsi made these remarks during the opening ceremony of the 67th meeting of the governing council of the African Advanced Level Telecommunications Institute (AFRALTI) at the Imperial Golf View Hotel in Entebbe.AFRALTI, established in 1991, is an Inter-Governmental Organisation dedicated to fostering ICT development in Sub-Saharan Africa. Its mission revolves around enhancing human capacity in ICTs through training, consultancy, and research initiatives.

Dr. Baryomunsi highlighted that the prohibitive prices of smart devices have deterred many individuals from accessing digital services. Additionally, Nyombi Thembo, the Executive Director of the Uganda Communications Commission, noted that the exorbitant cost of internet services poses another obstacle to Uganda’s digital transformation journey.

Thembo emphasized that the high cost of internet services can be attributed to the rapid advancement of technology, particularly the development of 5G, 6G, and other emerging technologies. Telecom operators need to invest heavily in these technologies to remain competitive. However, the infrastructure and capacity required for 5G and 6G are substantial, leading to higher operational costs. Consequently, telecom companies must charge higher prices to recover their investments. Despite these efforts, the adoption of internet services remains relatively low.

Thembo highlighted that the low penetration of smartphones contributes to the overall low uptake of internet services. Since smartphones are the primary devices used to access the internet, their limited availability restricts the number of users accessing online services. This limited demand further justifies the higher costs associated with internet services, as telecom companies must maintain profitability despite the smaller user base.

Thembo emphasized that in Uganda, smartphone penetration is currently only at 20%, significantly lower than desired. With such a low penetration rate, the cost of data services remains high. Despite efforts to reduce costs, with prices currently at $60 per Mbps per month, there is a need to further decrease this to at least $20 per Mbps per month to make internet access more affordable and accessible to a larger portion of the population.

Dr. Chris Baryomunsi, the Minister for ICT, affirmed that the government is actively taking steps to reduce the cost of both smart devices and internet services.Dr. Chris Baryomunsi highlighted that one of the steps being taken is tax exemptions, along with incentivizing technology companies to manufacture and assemble devices domestically. He mentioned that companies like Simi Mobile in Namanve Industrial Park and Mione in Mbale Industrial Park have already commenced local phone assembly operations.

The UCC Executive Director emphasized that Uganda’s assumption of the chairmanship of the governing council of the African Advanced Level Telecommunications Institute (AFRALTI) presents an opportunity to advance the country’s digital transformation journey. He noted that the assembly of mobile phones locally, resulting in more affordable prices compared to imports, will contribute to increasing the penetration of smart devices, making them accessible to a wider population.

Thembo highlighted the significance of institutions like the African Advanced Level Telecommunications Institute (AFRALTI) in capacity building and specialized knowledge acquisition, essential for staying ahead in the learning curve. He expressed pride in Uganda assuming the chairmanship of the council until the next year, emphasizing the institution’s role in advancing knowledge and research. As chairman, Thembo pledged to build upon the successes of his predecessors and explore new areas, particularly focusing on capacity building in data analytics.