As regulator moves to shut down illegal hotspots, questions emerge over affordability and the digital divide,
thousands of Ugandans who rely on low-cost neighbourhood Wi-Fi services could lose one of their few affordable gateways to the internet following a nationwide enforcement campaign launched by the Uganda Communications Commission (UCC) against unlicensed public Wi-Fi providers.
While the regulator insists the operation is necessary to protect consumers and uphold industry standards, critics argue the crackdown risks penalising small entrepreneurs and low-income users who have stepped in to fill a gap left by expensive internet services.
In a public notice issued on Monday, UCC announced that it would work with licensed Internet Service Providers (ISPs), telecommunications operators and other government agencies to eliminate unauthorised public Wi-Fi hotspots operating across the country.
The Commission says the operators are violating the Uganda Communications Act by offering public internet services without licences, exposing users to cybersecurity risks, unreliable connectivity, privacy breaches and limited consumer protection.
However, the announcement has reignited debate about internet affordability in Uganda, where many households and small businesses depend on informal Wi-Fi vendors charging as little as Shs1,000 for daily access.
Technology entrepreneur Allan Tumuhimbise argues that these neighbourhood Wi-Fi businesses did not emerge because people wanted to evade regulation, but because formal internet services remain beyond the reach of many Ugandans.
“Months ago I wrote about the neighbourhood Wi-Fi economy. One person buys a bundle, puts up a router, and sells the street internet at Shs1,000. Today UCC announced a nationwide crackdown on exactly that,” Tumuhimbise wrote on X.
While acknowledging the Commission’s responsibility to regulate the sector, he believes enforcement alone will not solve the underlying problem.
“I understand the reasons… But the honest thing to sit with is why that economy grew at all,” he said, arguing that informal Wi-Fi operators exist because affordable internet “never reached the street.”
According to Tumuhimbise, shutting down neighbourhood hotspots may remove illegal providers, but it will not eliminate the demand that created them.
“Enforcement can close the hotspots. It does not close the gap that created them,” he said, adding that the popularity of community Wi-Fi should be viewed as a signal that the market has failed to provide affordable internet products for ordinary Ugandans.
For many users, neighbourhood Wi-Fi has become more than a convenience. Students download coursework, job seekers submit applications, traders process mobile transactions and families communicate online using inexpensive shared internet connections.
The businesses themselves have also created a source of income for young entrepreneurs who purchase internet bundles from licensed providers before redistributing connectivity to surrounding communities.
Responding to concerns, UCC defended the enforcement exercise, saying affordability and regulation should not be viewed as opposing goals.
“We appreciate these questions because they’re exactly the conversation we need to have,” said Ibrahim Bbossa, UCC’s Head of Public and International Relations.
“‘Regularise’ means engaging the Commission to operate within the existing licensing framework because providing public internet services without a licence is unlawful.”
Bbossa said the Commission continues to encourage licensed providers to introduce more affordable and innovative internet products while ensuring services remain secure and accountable.
“The Commission’s goal is not to remove affordable internet; it’s to build a digital economy where innovation thrives, consumers are protected, and everyone providing public communications services operates under the same rules,” he said.
He added that UCC’s position has not changed and that the regulator remains committed to balancing affordability, consumer protection, cybersecurity and sustainable sector growth.
Nevertheless, the crackdown has highlighted the tension between regulation and digital inclusion. While licensed operators are required to meet strict quality, security and consumer protection standards, critics say the current licensing framework may be difficult for small community-based internet providers to navigate or afford.
As Uganda pursues its digital transformation agenda, analysts say the challenge will be ensuring that enforcement does not inadvertently widen the country’s digital divide by cutting off affordable internet options before viable alternatives are available.