The National Information Technology Authority Uganda (NITA-U) has made a significant announcement, reducing the cost of Internet bandwidth from $70 to $35 per megabyte, per second, per month.
This decision, which took effect immediately, was revealed by NITA-U Executive Director Dr. Hatwib Mugasa and Dr. Chris Baryomunsi, the Minister for ICT and National Guidance, during a press conference at the Uganda Media Centre on August 1, 2023.
The primary objective behind this price reduction is to lower the cost of doing business in Uganda and stimulate ICT growth across the country. Dr. Mugasa emphasized NITA-U’s commitment to lower bandwidth costs, enhance digitization, promote e-services, and reduce government expenditure through shared IT services like Internet and centralized hosting.
One of the key initiatives contributing to the reduction is the Uganda Digital Acceleration Project (UDAP), which aims to extend internet coverage from 53 major districts and ten border points to every parish nationwide. This expansion is expected to further decrease Internet costs for users in Uganda.
Dr. Mugasa expressed NITA-U’s dedication to consistently lowering internet bandwidth costs, particularly for government institutions, which play a critical role in providing services to ordinary citizens and the private sector.
He announced the forthcoming launch of the Uganda Digital Acceleration program (UDAP) or GovNet project, which will extend connectivity to 95% of government offices and districts. NITA-U believes this project will drive internet prices down even further, making it the most affordable in the region.
Dr. Baryomunsi hailed the cost reduction as a remarkable milestone that will not only reduce government spending but also boost the adoption of e-Government Services, attract more internet users, and deepen digitization efforts across the nation. He further explained that the ripple effects of the government’s action will positively impact retail internet prices, improving accessibility and affordability of internet services for the entire population and potentially increasing internet penetration in Uganda.
NITA-U, initially providing internet services to government entities and offices since 2013, has broadened its services to encompass the private sector, innovation hubs, education institutions, and Wi-Fi hotspots. Throughout this period, the agency maintained a steady rate of $70 per Mbps of Internet from the fiscal year 2017/2018 to date, comparing favorably against the average market rate of $84.
This remarkable price cut marks a pivotal moment in Uganda’s digital landscape, promising more affordable internet access for businesses, individuals, and institutions alike, while propelling the country’s technological advancement and overall development.