In a statement, UCC Executive Director Nyombi Thembo said the rapid growth of public Wi-Fi hotspots has improved affordable internet access and created livelihoods for many young entrepreneurs. However, he stressed that all providers of public communications services must operate within the country's regulatory framework.
"The objective is not simply to enforce the law. It is to build a communications sector that supports innovation while protecting the public interest," Thembo said.
The Commission recently announced enforcement action against operators providing public Wi-Fi services without the required licences, prompting concern among hotspot operators and renewed debate over compliance requirements.
Thembo said innovation should be encouraged, but noted that telecommunications is a highly regulated sector because consumers entrust communications networks with sensitive personal information, financial transactions and business operations.
He warned that allowing unlicensed operators to continue offering services would undermine consumer confidence and disadvantage licensed companies that comply with regulatory obligations, technical standards and government requirements.
"Unregulated telecom activities cannot be allowed to flourish in this highly regulated sector. Offering services without a licence poses significant risks that could lead to chaos," he said.
The Commission is encouraging operators to regularise their businesses by obtaining the appropriate Public Service Provider (PSP) licence.
Under the current licensing framework, applicants pay a one-off processing fee of USD 2,500 (about Shs9.1 million). A regional Public Service Provider licence costs USD 12,000 (about Shs43.7 million) for the Central Region and USD 3,300 (about Shs12 million) for other regions, while a national Public Service Provider licence costs USD 20,000 (about Shs72.8 million).
According to Thembo, applications are submitted online and complete applications are processed within 60 days.
He said licensing goes beyond regulatory compliance by enhancing business credibility, providing access to regulatory support and positioning enterprises for sustainable growth in Uganda's expanding digital economy.
Looking ahead, Thembo revealed that UCC is considering introducing a new licensing category targeting organised youth and women's groups interested in providing public Wi-Fi services. He said the proposed category is intended to lower barriers to entry while ensuring operators comply with regulatory standards.
He urged all unlicensed public Wi-Fi operators to formalise their businesses, saying Uganda's digital transformation depends on innovation being matched with accountability, consumer protection and fair competition.
The enforcement comes as Uganda continues to expand internet connectivity, with public Wi-Fi hotspots playing an increasingly important role in supporting education, business, communication and digital entrepreneurship across the country.