2010 11 annual post and telecommunications market review ... 11... · the global market place –...

Post and Telecommunications Annual Market Review 2010/2011Market Review 2010/2011

Introduction

This review is presents the performance of the post and telecommunication’s market the Financial Year 2010/11. It includes the following;

1. A review of the macro economic developments at global, regional and national levelnational level

2. Regional and global trends in communications sector3. Communication Sector contribution to economic growth 4. Financial performance highlights from 2010/115. Trends in subscriptions and penetration6. Service Growth and coverage7. Products and pricing trends in the post and courier market8. Key regulatory developments

2010/11 Annual Post and Telecommunications Market Review2

The Global & Regional Market The Global & Regional Market Place

2010/11 Annual Post and Telecommunications Market Review 3

The Global Market Place – 2010/11

The global economy has witnessed slow recovery from the financial crisis of 2008/9 with the IMF projecting of 5% and 4.4% growth in global output in 2010 and 2011 respectively.

Other major highlights in the global

Rising commodity prices in the region

Relatively high growth rates of 7.3% and 6.3% in 2010 & 11 in emerging and developing economies compared to 2.8% & 2.3% GDP growth in the G8

Rising global fuel prices Other major highlights in the global socio – political economy in 2010/11 have included; Currency rate volatility across all

major currencies Political turmoil in North Africa and

the Middle East Persistent high unemployment in

developed economies

Rising global fuel prices



Sub Saharan Africa

The sub Saharan economy, grew at an estimate of 5.5% and 4.3% real GDP growth, characterised by;

1. Adverse depreciation of local

East African Community (EAC) In the EAC, the following are worth noting;1. 6+ GDP percentage growth rates were

registered for all member states save for Burundi with the highest GDP growth of 7% posted by Rwanda.

2. High inflation rates in the region with Burundi 1. Adverse depreciation of local currencies against the major currencies in the second half of the FY

2. Rising fuel prices3. Rising inflation with the World

Bank projecting inflation of 8.3 in 2011

2. High inflation rates in the region with Burundi posting the highest rate of 13.5% at the end of June 2011.

- The finalisation of the protocol and policy to establish the EAC Development Fund and

- The adoption of the EAC Common Market protocol at the beginning of the FY. This establishes principles for the free movement of goods, persons and capital in the region.



Highlights in the global telecommunications market place in 2010/11 include;

1. Developments in LTE and its associated benefits in the realm of mobile broadband service. Countries like Hong Kong, South

At the regional level, the marketplace for the FY has been dominated by;- Increased price competition or price wars in the voice market in all East African markets especially in Kenya and Uganda,- Termination rate freeze in Kenya following aggressive tariff wars

Telecom Global Developments Telecom Regional Developments

service. Countries like Hong Kong, South Korea, Germany, France and Australia among others auctioning or in advanced stages of LTE spectrum Auction

2. Growth in Smart phone sales in Europe and the US largely driven by Android devices and Apple’s iPhone 4

3. Increasing VoIP market share in the global fixed line voice market in direct substitution of PSTN traffic. In March 2011, Skype, the global VoIP giant posted a record 30 million concurrent users with more than 660 million registered accounts. Industry analyst project $ 75 Billion in VoIP revenues by 2015.

aggressive tariff wars- the proliferation of mobile enabled financial services generally known as mobile money services. - Essar Telecom entry and exit from the regional market- Growth of the wholesale infrastructure leasing market.


Global Market Place – 2010/11

Global Mergers & Acquisitions (M&A) and Strategic Partnerships

Major M& As and strategic alliances in the global telecommunications market included;

1. Ericsson’s $ 1.15 Billion acquisition of

Vodafone’s $ 5 Billion acquisition of Essar’s 33% stake in India’s Vodafone Essar. This followed Essar’s exercise of its 22% share put option and Vodafone’s exercise of its 11% share

1. Ericsson’s $ 1.15 Billion acquisition of software giant Telcordia to diversify software development and Operations Support Systems.

2. Microsoft’s $ 8.5 Billion acquisition of VoIP giant Skype

Vodafone’s exercise of its 11% share call option.

Vodafone’s extension of its strategic partnership with Swiss provider Swisscom for joint procurement service platforms & network equipment as well as joint roaming provisioning


Global Market Place, Post & Courier

On the global scene, Radio Frequency Identification (RFID) enabled parcels tracking and conveyances has continued to grow with market analysts predicting that more than 1 trillion items will be tagged annually by 2018

It is claimed that RFID tracking will improve delivery times and tracking my more than 50% of current global averages.

The growth of e – hubs and e – retailers continues to provide a significant avenue for post and courier growth. The world over, post and courier operators formed logistical alliances with e hubs and e retailers like Amazon to effectively tap into this growing alliances with e hubs and e retailers like Amazon to effectively tap into this growing market space.This is expected to blossom as e retailers continue to differentiate their service on delivery times

In Uganda however, the courier market has been slow in reacting to this emerging trend with only a few entrepreneurs limited mobile money enabled home deliveries.

The slow growth in this service may be in part attributed to the lack of a good address system in Uganda


National Economic OutlookNational Economic Outlook


National Economic Outlook

12

14

16

Overall GDP and Sectoral Growth Rates, 2010/11

There was a slight increase in GDP growth rate from 5.5% in the previous FY to 6.3% in FY2010/11

2010/11 Annual Post and Telecommunications Market Review

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11Agric, Fishing and Forestry 0.5 0.1 1.3 2.9 2.4 0.9Industry 14.7 9.6 8.8 5.8 6.5 7.5Services 12.2 8 9.7 8.8 7.4 8Overall GDP at Market Pxs 10.8 8.4 8.7 7.3 5.5 6.3

0

2

4

6

8

10

12

10

Sector Contribution to GDP

The role of the agriculture and Forestry sector continues to fall from 14.9% contribution to GDP in 2009/10 to 13.9% contribution to GDP in

Agriculture, Forestry &

Fishing14%

Adjustments9%

Sector Contribution to GDP, 2010/11

contribution to GDP in 2010/11.

Services on the other hand continue their dominance of the economy with sector contribution raising to 52.4% in 2010/11 compared to 51.6% in 2009/10


Services52%

Industry25%

14%

11

Post and Telecommunications Growth Rate

For the second year running the communications industry posted a 20+ year on year growth rate in the FY 2010/11

This is three times the national GDP Growth of 6.3%

Post & Telecommunications Growth Rate, 2010/11Post & Telecommunications Growth Rate

Growth of 6.3%

This growth was largely driven by increased competition, the entry of new players like Airtel, increments in infrastructure roll out for data services, and the emergence of non voice services like mobile money.


26.229.1

22.619.8

23.721.2

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

12

Post & Telecommunications Contribution to GDP

In terms of contribution to GDP, post and telecommunications share of GDP doubled in 2010 from 3.1% to 6.2%.

This growth in contribution was 6.2

Post & Telecommunications Share of GDP, 2010 (UBOS)

GDP Share

This growth in contribution was driven by increasing sector contribution to employment and attraction of Foreign Direct Investment and Taxes.

This figure underlines the growing importance of the sector to national growth and development in Uganda.


2.9 3 2.9 3.1

2006 2007 2008 2009 2010

13

Telecommunications Tax Revenue

Shs 200 Bn was collected in form VAT, Excise and PAYE from the six telecommunications service providers in the FY 2010/11.

This translates into 7% drop in year to year tax collections.

This drop in tax revenues was the result of; 98,001 100,750

Annual Telecommunications Tax Revenue, Shs Mil

Excise VAT PAYE

result of;- High input credits to a number of operators resulting from significant capital expenditure during the FY. These subsequently led to fall in VAT revenues- Aggressive price wars in the second half of the FY that resulted in low end user Excise & VAT collections

The following slide shows quarterly tax collections during the FY from the 6 major telcos


2007/08 2008/09 2009/10 2010/11

71,204

88,775 98,001 100,750

58,275 54,628

94,278

68,245

11,101 12,176 22,562

30,643

14

Quarterly Tax Collections – 2010/11

27,525 25,318 25,557

22,351 24,792

Quarterly Tax Collections, FY 2010/11, Shs BilExcise VAT PAYE


3Q10 4Q10 1Q11 2Q11

22,351 21,478

12,848

9,127 6,955 7,429 7,862 8,398

15

Sector Financial Performance


Post and Telecommunications Revenue

During the FY 2010/11, the communications sector grossed an estimated Shs1.7 trillion compared to Shs 1.4 trillion realised in 2009.

This translated into a year on year revenue growth rate of 13% compared to 7.7% Year on year earnings growth realised in

However industry revenues were hit by the rapid local currency devaluation against the USD translating into a 1.4% revenue drop in USD terms despite the growth in Shs terms.

Gross industry earnings in the 2010/11 dropped from USD 669 mil in 2009/10 Year on year earnings growth realised in

2009/10

The revenue growth was a result of increased service penetration and growth of non traditional revenue drivers like data, infrastructure leasing and financial services.


dropped from USD 669 mil in 2009/10 to USD 660 mil.

The rapid devaluation of the UGX poses a number of issues to domestic players as a number of their operational and capital expenses like bandwidth, international termination settlements some financing costs are met in foreign currencies

17

Post and Telecommunications Revenue

582,781,898 640,490,217

669,030,885 660,030,885

Est Post & Telecommunication Revenues, 2010Turnover, USD


2005 2006 2007 2008 2009 2010

303,735,352

364,530,942

18

Financial Performance Highlights -

Highlights from the Commission’s review of financial performance of the 6 telephone service providers in 2010 include;

- Increased significance of non traditional/ non voice revenue streams by the telephone service providers

- Continued poor liquidity positions resulted in continued working capital extension by parent companies for most of the multinational players.

- Continued dominance of sector revenues by a single playerby the telephone service providers

- Record net losses realised by a number of operators with 2 of the six operators posting losses after tax of more than Shs 100 Billion

- Poor liquidity position by some operators with current liabilities exceeding current assets by some operators casting uncertainty over their continued existence

revenues by a single player

- Adoption of zero valuation policy for sim card by some operators. Sim card prices had previously fallen to as low as Shs 1000.


19

Financial Highlights - Contd

Other sector financial highlights during the FY included; The implementation of premier LRIC interconnection rates at the beginning

of the FY The freezing of LAP Green assets following issuance of UN Resolution

1970 (2011) by the Security Council. LAP Green is the majority share holder in Uganda Telecom A notable increase in interconnection fee settlements defaults A notable increase in interconnection fee settlements defaults

Increased internal borrowing from parent companies for working capital and network expansion in the wake of aggressive price wars and rapid network expansion

Increasing local financing by domestic financial institutions in the sector.


Service Growth and PenetrationService Growth and Penetration


Service Providers

I – Tel Uganda Ltd a locally owned PIP/PSP holder launched commercial services on its CDMA network during the FY

On the licensing front, S – Tel

June 2009

June 2010

June 2011

NTO 2 2 2

Public 23 26 24Uganda Ltd another locally owned entity was issued with PIP and PSP licenses at the beginning of 2011

Six licenses were also revoked during the year , due to the inability to commence services or fulfilment of regulatory requirements.

Public Infrastructure Provider

23 26 24

Public Service Provider (Voice & Data)

32 36 34

Public Service Provider (Capacity Resale)

3 8 7

222010/11 Annual Post and

Telecommunications Market Review

Fixed & Mobile Subscriptions & Penetration, 2010/11

30

35

40

45

50

10,000,000

12,000,000

14,000,000

16,000,000 Fixed & Mobile Subscriptions and Penetration - 2010/11


2005/06 2006/07 2007/08 2008/09 2009/10 2010/11Fixed & Mobile Connections 2,116,958 3,729,645 6,301,590 9,678,799 10,641,110 15,019,129 Teledensity 7.7 13.2 21.2 31.6 33.5 45.6

0

5

10

15

20

25

30

-

2,000,000

4,000,000

6,000,000

8,000,000

Fixed & Mobile Connections Teledensity

23

Subscription Growth

The sector posted the highest number of new subscriptions in a Financial Year with 4.37 million new subscriptions in the FY 2010/11.

This new growth in subscriptions after slow growth in 2009/10 is attributed to; Cut throat pricing practices

founded on low tariff on net call bundles that fostered multiple sim ownership.

This translated into a year to year growth in subscriptions of 41% in 2010/11 from an annual growth of 10% recorded in 2009/10.

Subsequently, national telephone penetration rose to 45.6 lines per 100 inhabitants from 33.5 lines per 100.


ownership. Proliferation of multiple sim

handsets New subscription demand

created by new services like mobile money transfers and Utility payment options

Survey’s have shown that more than 45% of the subscribers have more than 1 sim card.

24

Quarterly Subscription and Penetration Growth

12,828,264 13,906,401

14,676,505

Quarterly Subscriptions, 2010/11Fixed Mobile

41.443.3

45.6

Quarterly Subscription Growth Rates & Penetration, 2010/11

Penetration Quarterly Growth Rate


Jun-10 Sep-10 Dec-10 Mar-11 Jun-11

265,890 326,588 327,114 351,900 342,624

10,375,220 11,360,008

33.536.8

3.9

9.812.6

8.45.3

Jun-10 Sep-10 Dec-10 Mar-11 Jun-11

25

The Customer RaceThe Customer Race


Customer Acquisition Strategies

In the face of increasing competition in the telephone market, operators adopted a series of approaches in pursuit of growth and competitive advantage in the market place. These included;

A proliferation in promotional tariffs A general decline in base rates for voice services by all operators A general decline in base rates for voice services by all operators Dominance of service driven demand strategies as opposed to low

pricing initiatives Increased segmentation of the market and subsequent repositioning to

win in the respective segments Proactive brand development Continuation of network roll out and upgrades specially in the mobile

data market

The following slides shows highlights of different initiatives undertaken by the service providers


Customer Acquisition in the Mass market – Tariff Movts

Customer acquisition in the mass market has been mainly driven my price drops and convergence of on net and off net tariffs.

Over the FY 2010/11, the telecommunications has seen two major industry tariff revisions with drops in October 2010 followed by another industry wide tariff drop in Feb/ March 2011.

318 334

384 392

220

Peak On/Off Tariff Movt, 2010/11 On net Off net

industry wide tariff drop in Feb/ March 2011.

By the end of the FY 2010/11, on net call charges averaged 124/= per minute from a June 10 average of 334/-. This translated into a more than 60% on net price drop as operators sought to position themselves as the cheapest network

The off net tariffs like the on net prices dropped form an average of 396/- per minute in June 2010 to 220/- per minute. Aside from increased competition, the off net tariff drops could also be attributed to falling interconnection rates.


180

124

195220

Dec-09 Jun-10 Dec-10 Jun-11

• The macro-economic squeeze witnessed since the beginning of 2011, characterised by high interest rates, inflation and the weakening of the shillings has driven prices for services higher in the last half of the FY.

28

Domestic per minute Call Tariff Movements, June, 2010/11

Profile Destination June 10 Dec 10 June 11

UTL UT Std On net 310 180 180

Off net 440 180 180

Warid Per Minute On net 329 180 120

Off net 329 180 180

Airtel Zain 39 On net 400 180 120

Off net 400 180 180Off net 400 180 180

MTN PayGo Std On net 340 180 120

Off net 500 240 180

Orange Per Minute On net 290 180 120

Off net 290 320 300

Smile Per Minute (per sec bill)

On net 300 300 60

Off net 300 300 300

I – Tel Forever per Minute

On net n/a n/a 150

Off net n/a n/a 2202010/11 Annual Post and Telecommunications Market Review

29

Domestic Tariff Trends 2010/11

On net Pricing Off net Pricing

329

400

340

On net Tariff Movt, Shs, 2010/11Jun-10 Jun-11

440

400

500

Off net Tariff Movt, Shs, 2010/11Jun-10 Jun-11


UTL Warid Airtel MTN Orange Smile I tel

310329

290 300

180

120 120 120 120

60

150

UTL Warid Airtel MTN Orange Smile I tel

329

400

290 300

180 180 180 180

300 300

220

30

Flat Rate Bundles

Besides drops in base tariffs, operators also reinforced their base offers with further segmentation of their flat rate bundles.

Aside from the daily and monthly flat rate bundles introduced in 2009/10, there are further minute and hourly bundles like Mini Kika, Kawa and MTN freedom.Kawa and MTN freedom.

Slide 32 shows detailed bundle offers that were ran during the period under review


Flat Rate Bundles, 30th June 2011

Operator BundleCharge

Offer Name Description

MTN 8,000/= MTN Freedom

300 On net minutes

Warid 1,000/= Pakalast 24 Hours of unlimited on net calls

500/= Kawa 30 On net minutes

Orange 1,000/= Gyekiri 24 Hours of unlimited on net calls

6,000/= 7 Days of unlimited on net calls

UTL 500/= Ndobo 24 Hours of unlimited on net calls

Airtel 10,000/= 30 days of On net calls

1,500/= Kino Kika 24 Hours of unlimited on net calls

500/= Kika 30 On net minutes

200/= Mini Kika 5 On net minutes


32

The International Segment

In the international voice segment, customer acquisition has been primarily hinged on price differentials. During the year, operators engaged in a number of offers aimed at positioning them as the cheapest option in the international voice market.

These included; - International call rate drops by all service providers. This was largely helped

by falling international termination rates enabled by VoIP termination. - Pure per second international call billing by Airtel for the first time on the

Ugandan market. - International call bundles to destinations like USA, China, UK and India by

Orange


Per Minute International Tariff Comparison, Shs, June 2011

MTN UTL Airtel Orange Warid Smile I tel

East Africa Home & Away Partners

295 450 n/a 320 n/a n/a n/a

Rest of East Africa

450 525 550 450 499 540 350

UK 365 299 550 320 499 540 350

China, India & UAE

365 180 550 450 499 540 350

USA & Canada

180 299 550 320 499 540 350


Flat Rate International Promotional rates 2010/11

Operator Destination Duration

Airtel Canada, US, China, India 15 Min 2,000/=

Bangladesh, France, Pakistan 10 Min 2,000/=

Rwanda, Kenya, UK 6 Min 2,000/=Rwanda, Kenya, UK 6 Min 2,000/=

Orange UK 20 Min 5,000/=

Canada, USA, China 45 Min 5,000/=

India, Pakistan 30 Min 5,000/=


Alternative Subscription Market - The Dual Sim Phone craze

In their pursuit of second line subscriptions (customers purchasing a line as an alternative number to their primary subscription), operators introduced hugely discounted multiple sim enabled handset offers.

Multiple line handset offerings during the FY included;- Warid’s “daboline”; a ZTE manufactured dual sim handset that retailed for Shs 60,000 with Shs 75,000 worth of airtime60,000 with Shs 75,000 worth of airtime- Airtel’s “salongo”; a dual line phone with an introductory retail price of Shs 59,900 with Shs 60,000 worth of airtime.- Orange’s “Nalongo”; a dual sim phone with an introductory retail price of Shs 69,000 with Shs 500 worth of airtime

Note that aside from the handset discount, operators offered bonus air time to presumably enhance the subsequent use of the newly acquired numbers.


The Double Line Phones

Airtel’s Salongo Warid Daboline


Service Driven Demand

Aside from tariff related customer acquisition strategies, the market also saw the entrenchment of service driven subscriber demand. New services included;

- Mobile money enabled school fees settlement schemes- Mobile utility settlement plans with MTN, UTL and Airtel introducing

water and TV payment serviceswater and TV payment services

It is believed that these new services have over the course of the year emerged as strong subscription drivers, complimenting the price based sources of competitive advantage in the customer acquisition

race.


Traffic GrowthTraffic Growth


Annual Traffic Growth

Resulting from the tariff drops and subscription growth highlighted in the preceding segments, the sector recorded a total of 12.6 billion billed minutes in 2010/11 from 7.4 billion minutes in 2009/10.

This 69% year on year aggregate growth 6,500,467,142

9,385,078,373

Annual Traffic Growth, 2010/11On net Off net Intnl Out

was based on 44% growth in the on net segment while the off net segment saw traffic more than double.

The outstanding performance of the off net traffic segment was a direct result of the near convergence of off net and on net tariffs during the period under review while the 60% growth in on net traffic is on account of international rate revisions and discount offers during the FY.


2007/08 2008/09 2009/10 2010/11

2,492,959,210

5,413,033,985

6,500,467,142

846,328,764 1,065,219,839 827,570,668

3,042,261,143

111,220,349 147,318,146 107,229,800 173,375,156

40

Annual Traffic Growth

150.0

200.0

250.0

300.0

Annual %age Traffic Growth Rates, 2010/11


2008/09 2009/10 2010/11Overall Growth 92.0 12.2 69.5On net 117.1 20.1 44.4Off net 25.9 -22.3 267.6Intnl 32.5 -27.2 61.7

-50.0

0.0

50.0

100.0

41

Quarterly Traffic Distribution 2010/11

Off net24%

Intnl Out1%

Traffic Distribution, 2010/11

Off net11%

Intnl Out2%

Traffic Distribution, 2009/10


On net75%

24%

On net87%

42

Internet and Data ServicesInternet and Data Services


Fibre Optic Cable Coverage, 2010/11

Company Route Length (km) May 2010

Uganda telecom Kampala – Entebbe 42.2 km

Kampala – Mukono 20 km

Kampala – Masaka 258 km

Kampala - Katuna 220 km

Malaba – Mombasa 900 km

MTN U Ltd Kampala – Busia 206 km

Kampala - Mbarara 289 km

Kampala - Masaka 258 km

Masindi – Northern Route 165 km

Warid Telecom Around Kampala 42 km

Airtel Around Kampala 40 km

Infocom Kampala – Eastern Uganda 240 km

Kampala – Katuna 590 km


44

Fibre Optic Cable Coverage, 2010/11

Company Route Length (km), May 2011

UETCL Nalubale – Malaba, Masaka – Mbarara, Nalubale – Tororo, Tororo – Malaba

336.6 km

GOU – NBI Kampala – Entebbe, Kampala – Mukono, Kampala – Jinja,

168 kmKampala – Jinja,Kampala – Bombo

GOU – NBI Luwero, Nakasongola, Masindi, Gulu, Lira,Soroti, Kumi, Mbale, Tororo, Busia, Hoima, Kyenjojo, Fortportal, Kasese, Bushenyi, Mbarara, Ntungamo

1,542 km

GOU – NBI Lyantonde, Masaka, Mpigi, Apac, Iganga, Bugiri, Tororo, Busia

407.8 km


Internet Service Access, June 2011

Category Coverage

Geographical coverage • Near national GPRS and EDGE coverage• 76, 80 km CDMA Points of Presence• Wimax in Kampala metro• National VSAT coverage

Govt MDA 33 MDAs connected to e govt infrastructureGovt MDA 33 MDAs connected to e govt infrastructure

Local Govt Admin Units 78 local govt administrations connected to the internet

Government Hospitals and Health centres •53 hospitals connected to the internet• 50 HC IV facilities connected

Public and Private Universities •31 universities connected to the internet

Government Secondary schools • 708 ICT laboratories in secondary schools


Bandwidth Growth, 2010/11

400

500

600

12,000.0

14,000.0

16,000.0

18,000.0

Bandwidth Growth, 2010/11


Dec-09 Jun-10 Dec-10 Jun-11Total bandwidth (mbps) 2,050.0 5,145.7 7,727.0 15,739.2 Mbps per 1,000,000 inhabitants 66.86 161.89 243.11 477.82

0

100

200

300

-

2,000.0

4,000.0

6,000.0

8,000.0

10,000.0

Total bandwidth (mbps) Mbps per 1,000,000 inhabitants

47

Trends in Internet Subscriptions, June 2011

850,200

Est Internet Subscriptions, June 2011Fixed Internet Subscriptions Mobile Internet Subscriptions

2007 2008 Jun-09 Jun-10 Dec-10 Jun-11

15,500 22,000 27,590 31,000 35,000 84,558

31,058

510,000

610,000


Growth in internet Access & Usage

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

600,000

700,000

800,000

900,000

1,000,000

Growth in Internet users, June 2011


2007 2008 Jun-09 Jun-10 Dec-10 Jun-11Internet Subscriptions 15,500 22,000 58,648 541,000 645,000 934,758 Internet Users 1,000,000 2,500,000 2,800,000 3,500,000 4,000,000 4,662,240

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

-

100,000

200,000

300,000

400,000

500,000

600,000

49

Internet Pricing, June 2011

Modem PricesLow Median High

Retail Modem Prices Sh.25,000 Sh.59,000 Sh.110,000

Monthly Bundle Rates

500 Mb Sh. 24,000 Sh. 25,000500 Mb Sh. 24,000 Sh. 25,000

1Gb Sh. 30,000 Sh. 39,200 Sh. 45,000

Unlimited Sh. 60,000 Sh. 120,000 Sh. 299,000

Dedicated Packages512 kbps $ 280 $ 300 $ 450

1 mbps $ 600 $ 700


Post and Courier services


Post and Courier services

51

Post and Courier Service Providers

June 07 June 08 June 09 June 10 June 11

Major Postal 1 1 1 1 1

International Courier

5 6 6 7 8

Regional Courier

6 6 8 8 8

Domestic Courier

6 8 8 14 14


Postal Traffic, 2010/11

376,805

486,363

Ordinary & Registered Domestic Letter Post, June 2011Domestic Ordinary Letter Post Domestic Registered Letter Post Domestic EMS


3Q10 4Q10 1Q11 2Q11

222,548

376,805

329,383

6,457 2,270 1,603 13,082 26,399 33,368 29,831 41,234

53

Courier Rates for Select Domestic Destinations 500gm, Aug 11

License Kampala Mbarara Arua Jinja

Globex Express Courier

Intnl 3,500 15,000 22,500 10,725

East African Courier Intnl 6,500 15,600 19,500 10,400

EMS/UPL Intnl 3,000 5,000 9,000 5,000

G4S 7,800 14,560 17,290 11,050

Nation Carrier Regional 3,900 9,100 13,000 7,800

Yellow Pages Domestic 3,600 9,200 9,200 5,700

Skynet U Ltd Intnl 5,850 33,150 47,200 15,400

Daks Courier Intnl 4,000 12,000 12,000 6,000

New Times Express 6,500 19,500 19,500 12,350


54

Key Regulatory DevelopmentsKey Regulatory Developments


Regulatory Developments

UBC - UCC Merger- Uganda Communications

Commission and the Uganda Broadcasting council have merged

- Mr Godfrey Mutabazi took over as Executive Director of merged body

- Interim Board appointed my

Other Regulatory Developments- Sim card registration consultations

are underway with the industry- Analogue to digital broadcasting

migration has resumed and Government approved the digital migration policy

- Interim Board appointed my Minister of ICT

Post & Courier- UPL was issued a 5 Year national

operator license- Implementation of national pilot

post code project is underway

migration policy- Licensing framework for signal

distributor has been developed- Signal distribution consultations

underway with the MoICT & UBC- World Radio Conference 2012

proposals submitted to ITU- Construction of two new remote

monitoring sites in Gulu and Mbarara underway


Regulatory Developments

Others Regulatory developments incl. Consultations with stakeholders

underway on the implementation of Number portability

Review of fixed and mobile termination rates underwayDraft infrastructure sharing

Institutional Collaborations Institutional partnership with

URA Institutional partnership with

NEMA Draft infrastructure sharing

guidelines issued The development of an industry

code of practise for advertising


Medium Term Industry Outlook

Post & Courier Increased internet and

telephone penetration continues to squeeze traditional mail volumes.

Proliferation of mobile money shall provide complimentary

Voice & Data Growth in the nascent wholesale

infrastructure market coupled with increase in infrastructure sharing

Increased investment in wireless data services

Increased bundling of voice and data services shall provide complimentary demand in the courier market

Completion of the pilot address project should revolutionalize traditional post.

Increased competition to the traditional postal money order services from the mobile money services should further narrow demand in this segment.

Increased bundling of voice and data services characterised by hybrid bundles

Increased e governance following the completion of the first phase of the national backbone

Growth of the mobile applications market Increased prominence of non traditional

services like mobile money and mobile apps in the industry’s top line


THANK YOU


2010 11 annual post and telecommunications market review ... 11... · the global market place –...

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