Uganda Telecommunications Report Q3 2014

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BMI View: There remains considerable growth opportunity in Uganda's mobile market, which BMI estimates reached a penetration rate of just 47% in 2013. However, a large proportion of potential subscription growth lies in rural areas where more than 80% of the population lived in 2013, according to BMI data. Reaching these subscribers will require significant investment in network expansion to regions which inevitably engender high operational costs, due to difficulty accessing power and poor infrastructure. Market ARPU in Uganda has been below USD4 since 2011, dragging on operators' revenue and profit growth, thus limiting their ability to reinvest in network upgrades and expansion. BMI believes consolidation would help mitigate further price erosion in the market and enable larger operators to reach greater operational efficiencies and scale in the maintenance and expansion of their networks.

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