Uganda’s communications market is rapidly moving beyond traditional voice calls and broadcasting, with mobile internet, mobile money, social media and digital entertainment emerging as major drivers of the sector.
The latest Uganda Communications Commission (UCC) market performance report for the second quarter of 2026 shows that telecom operators generated Sh1.73 trillion in revenue between April and June, up from Sh1.60 trillion recorded in March.
The growth comes as mobile connectivity continues to expand. By June, Uganda had 49 million active mobile subscriptions, 19.7 million mobile-internet subscriptions and 37.8 million mobile-money subscriptions.
The country also recorded 20.5 million smartphones, 24.8 million feature phones and 13.6 million basic phones.
UCC cautions that these figures represent subscriptions and devices rather than unique individuals, meaning one person may hold multiple subscriptions.
Data economy takes centre stage
The numbers show that Ugandans are increasingly using mobile phones for more than voice communication.
During the quarter, UCC recorded 2.55 billion mobile-money transactions, 19.6 billion USSD sessions and 267.4 million gigabytes of downloaded data.
Voice traffic remained significant, with 20.4 billion domestic on-net minutes and 1.8 billion off-net minutes recorded during the period.
However, the rising telecom revenues point to an industry increasingly driven by data and digital services.
Telecom revenue rose from Sh1.62 trillion in September 2025 to Sh1.66 trillion in December, Sh1.60 trillion in March 2026 and Sh1.73 trillion in June.
TikTok overtakes WhatsApp
One of the clearest signs of Uganda’s changing digital habits is the rise of TikTok.
UCC recorded 11.4 million TikTok subscriptions by June, narrowly overtaking WhatsApp at 11 million.
YouTube followed with 6.9 million subscriptions, while Snapchat had 2.8 million, Instagram 1.5 million, X 900,000 and Netflix 100,000.
TikTok’s lead is significant because it signals a growing appetite for short-form video, entertainment and creator-driven content alongside traditional messaging.
For Uganda’s digital creators, filmmakers and businesses, the shift presents a larger audience that can be reached directly through mobile platforms.
Again, the UCC figures should not be interpreted as unique users because an individual may have accounts or subscriptions across multiple platforms.
Pay-TV still holds ground
Despite the explosion of mobile content, television has not disappeared.
UCC recorded one million active Pay-TV subscribers in June, covering satellite, terrestrial and cable services.
DStv, StarTimes, Azam TV and Zuku remain major players in the satellite market, while terrestrial services have a more concentrated geographical reach.
The number of channels available also varies across providers, with UCC reporting 165 channels for DStv, 169 for StarTimes satellite, 139 for Azam TV, 145 for Siti Cable, 100 for StarTimes terrestrial, 81 for GOtv and 67 for Zuku.
The figures point to an increasingly fragmented entertainment market where Ugandans can choose between conventional television, Pay-TV and mobile-based platforms.
Digital platforms open new space for Ugandan film
The growth in connectivity is also creating opportunities for Uganda’s creative economy.
UCC says it engaged 21 finalists under its Content Development Support Programme, comprising eight feature films, six documentaries, three short films, two television dramas and two animations.
Ugandan filmmakers also made an impression at the Kalasha International Film Festival and Awards in Kenya in May.
JIMBI, directed by Talemwa Pius, won Best International Film, while Dinner for Three, directed by Brian Kabogozza, won Best Student Film.
UCC also supported the Northern Uganda Film Awards in Gulu and Uganda Film Festival initiatives focused on screenplay writing and animation.
The push is aimed at helping local filmmakers, animators and digital creatives produce content capable of competing beyond Uganda.
Cinema attendance, however, remains relatively modest. UCC recorded 7,800 tickets sold in April, 8,200 in May and 9,500 in June.
Sixteen films were screened in June, with men accounting for 60% of attendance and women 40%.
The most popular films included Michael, with 7.1% of attendance, Masters of the Universe at 5.1% and You Me and Tuscany at 4.9%.
The smartphone gap
While Uganda’s digital economy is expanding, access remains uneven. The country may have 49 million active mobile subscriptions, but only 20.5 million smartphones were recorded by June.
This means millions of mobile users still rely on feature or basic phones, limiting their ability to access data-heavy services such as TikTok, streaming platforms, online banking and other digital applications.
For telecom operators and policymakers, the next phase of Uganda’s digital transformation will therefore not only be about connecting more people.
It will also be about making smartphones, data and digital services more affordable and accessible.
The Sh1.73 trillion quarterly telecom revenue shows the economic potential of this transition. But unlocking the full value of Uganda’s digital economy will depend on closing the device and affordability gap so that more citizens can move from simply owning a mobile connection to actively participating in the digital economy.
-Source URN