Today, the National Information Technology Authority of Uganda (NITA-U) announced a pricing cut for internet bandwidth, dropping the cost from 254,000 Shillings (US$70) per megabyte, per second, per month to 127,000 Shillings (US$35).
In 2013, NITA-U began providing internet services, mostly to government agencies and offices. The agency did, however, broaden its scope of services over time to include the private sector and niche organizations like innovation hubs, educational institutions, and Wi-Fi hotspots.
As of today, August 1, 2023, according to Dr. Chris Baryomunsi, Minister for ICT and National Guidance, the updated prices will take effect.
According to the lowering, customers of NITA-U services who are connected to the National Backbone Infrastructure will now have access to the least expensive internet service available.
In addition, Dr. Baryomunsi highlighted the halving of internet bandwidth costs as a significant achievement that will not only cut government spending but also accelerate the adoption of e-Government Services, draw more people online, and ultimately expand digitization.
Dr. Baryomunsi added that the government’s action will have a knock-on effect on market retail internet prices, improving the availability and affordability of internet services, ultimately benefiting the general public, and possibly raising internet penetration in Uganda.
However, NITA-U Executive Director Dr. Hatwib Mugasa stated that it is anticipated that the cost of internet service provided by Nita-U will continue to decline in the years to come.
This hope is based on the organization’s intentions to launch the Uganda Digital Acceleration Project (UDAP), which will expand internet service from the existing 53 major districts and ten border sites to the entire country, including every parish.
In a 2022 research report on internet affordability, Uganda is ranked 116th out of 117 nations, according to Surfshark, a cybersecurity company with Dutch headquarters. This shows that, by international standards, internet services in Uganda are not cheap.
Ugandans paid one of the highest costs in East Africa for mobile data in September 2019, according to Cable.co.uk, a UK-based website that compares pricing for broadband, TV, and mobile phones.
They discovered that the price of 1GB of data in Uganda was USD 4.69 (or 17,231 Shillings). Tanzania had the highest cost for 1GB at USD 5.93 (22,000 Shillings) during that time, placing Uganda as the second-highest data pricing country in East Africa.
There are many explanations behind Uganda’s low internet penetration rate. The high price of smartphones and the internet is one of the primary causes.
For a sizeable percentage of the population, these costs might be expensive, making it difficult for them to consistently access and use the internet.
Furthermore, the low internet penetration in the nation is a result of inadequate infrastructure, particularly in rural and remote locations.
Minister Dr. Baryomunsi full speech
