The Uganda Communications Commission (UCC) has suspended enforcement action against unlicensed hotspot operators to allow consultations aimed at developing a regulatory framework for the growing sector.
UCC Executive Director Nyombi Thembo said the decision followed a meeting with the Alliance of Hotspot Operators Uganda (AHOU), where both sides discussed how to balance regulation with innovation.
Although the commission’s earlier public regulatory notice remains in force, Thembo said he had directed UCC teams to halt enforcement during the engagement period.
“I have officially directed our teams to suspend all enforcement actions. This grace period will allow us to engage, learn, and co-create a realistic path to compliance,” Thembo said.
The commission acknowledged that hotspot operators are helping bridge internet access gaps by providing affordable data services while creating employment opportunities, particularly for young entrepreneurs.
However, Thembo warned that operating outside the regulatory framework exposes consumers and the communications sector to risks, including network interference and threats to data privacy.
As part of the next steps, UCC has launched a technical study in which members of the Alliance are working with the commission’s engineers to demonstrate their network architecture and billing systems. The findings will inform the development of regulations suited to the operators’ business models.
The regulator also announced plans to convene discussions involving telecom operators, internet service providers, the Uganda Revenue Authority and local urban authorities to explore fair wholesale internet pricing and simplified tax arrangements for hotspot businesses.
Thembo said the objective is to create “a structured, safe, and legally compliant market, not an exclusive one,” adding that UCC wants to support innovation while ensuring compliance with national communications laws.
