Cabinet approves new investors to revamp UTL
Cabinet has approved the 20 year service license proposal by struggling Uganda Telecom (UTL) to enable it get a competent investor to upgrade its network as an incentive to revamp it.
This was revealed by Frank Tumwebaze, the Minister for Information, Communications Technology and National guidance who was Speaking at a press briefing at media centre.
“UTL will undertake a process of license renew or extension in accordance with the UCC Act. Cabinet endorsed UTL to submit its licensing requirements.” Said Tumwebaze.
He further added that cabinet authorised the minister of state for investment to work with the Financial Intelligence Authority to investigate the capabilities and record of the various prospective investors that had submitted in their interests.
“Over 10 companies have expressed interest and they are in the process of selecting a competent one.” Tumwebaze added.
Cabinet also agreed that the Uganda Communications Commission (UCC) allows UTL to expand its spectrum so long as it can prove that it will use it efficiently to cover the whole country and provide better quality services.
“UTL requested for more spectrum and cabinet also agreed that they should follow the requirements with UCC to get more spectrum if it can reach far and be sufficient.”
It was also agreed that UTL or the resultant entity become the preferred internet provider for all ministries departments and agencies of government by guaranteeing it unlimited access and use of the National Backbone Infrastructure (NBI) to enhance government shareholding ranging between 32% to 45%.
“The National Backbone Infrastructure (NBI) is a government infrastructure, UTL will have access to it such that it will serve the government and the people.”
This was all agreed upon in a cabinet meeting that took place on April 30th at state house Entebbe, presided over by the president. Uganda Telecom has been struggling for several years.
However just on Tuesday, President Museveni directed that the management of the National Backbone infrastructure be given to UTL in a move to revamp the organisation.