KAMPALA | Uganda’s telecommunications sector has long been dominated by two major players MTN Uganda and Airtel Uganda who together control over 90 % of the market. Enter Lycamobile, which has quietly built a footprint of some 300 network sites and is targeting a leap from roughly 3.5 % market share to 15 % in the coming phase, banking on aggressive pricing, strong investment, and digital-first services.
Industry analysts and the regulator, Uganda Communications Commission (UCC), say the path to breaking the duopoly is clear but steep. While UCC states that the market is open to competition, any new serious entrant must match the infrastructure scale and customer reach of the incumbents both of which demand heavy upfront investment.
For Lycamobile, the plan appears bold. The company says it has already invested over US$150 million over the last five years and will inject another US$27 million soon to support growth. A no-cost “Supa SIM” launch and a “5G-ready” network are part of the push. But major challenges remain: according to UCC’s quality of service data, Lycamobile trails competitors in coverage, call-setup success rates and data throughput variables that will test its ability to disrupt.
Ultimately, the question isn’t only whether Lycamobile can flip the market it’s whether it can sustain its strategy without compromising service quality, regulation compliance or profitability. For now, Uganda’s telecom watchers are watching closely.