Money Markets

Uganda grapples with the pros and cons of increased access to mobile phones

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You do not have to look far to see the impact of the mobile on people’s lives. They are used to send money, check crop prices and run businesses. Photo/FILE

You do not have to look far to see the impact of the mobile on people’s lives. They are used to send money, check crop prices and run businesses. Photo/FILE 

By Tabu F. Butagira  (email the author)
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Posted Thursday, November 26 2009 at 00:00

“Why is it cheaper to call from neighbouring countries and not in Uganda?” asks Dr Francis Tusubira, an ICT specialist and director of Makerere University’s Directorate for ICT Support.

Dr Tusu, as he is known, says the country’s ICT ministry is struggling to introduce a uniform tariff for all telecom operators, but there is resistance from some of the players.

He says mobile operators in Uganda, as in many African countries, transfer high taxes charged by government to clients in the form of increased call rates.

As a result, it’s the fortunes of the users that are hurt, he argues. “The government should carry out a real analysis of the cost build-up for telecom operators so that a realistic cap is put on tariffs that enable the companies to make decent profits, but not profiteering,” he says.

Panos

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