UTel Prioritises Customer Acquisition
Can you outline Utel’s ownership structure, and what changes are expected in light of its rebranding?
UTel’s ownership is structured in that the Ministry of Finance, Planning and Economic Development (MFPED) holds a majority share with a 60% stake and the Ministry of ICT and National Guidance has the remaining 40%. The decision to rebrand UTel in August 2023 was driven by the need for a distinct identity, especially in light of the acquisition of the assets of Uganda Telecom (UTL) by Uganda Telecommunications (UTCL) in February 2022. UTL executed the asset sale and purchase agreement with UTCL for Shs256.9bn ($72.6m), which eliminated any confusion between the two companies.
The primary objective of the brand unveil was to introduce the brand identity logo or UTCL’s trade name, UTel with the tagline, ‘Your Network, Our Pride’ with an objective of creating digital access solutions that are affordable and deliver value for money to the underserved Ugandans UTel will target the Youth, the small and medium-sized enterprises (SMEs) and government ministries, departments and agencies. The company will offer a range of services with particular focus on the high-growth categories of data and financial technology (fintech) services.
What are the primary areas where the planned capital injection by the government will be allocated?
In the medium term, for sustainable growth through data services, UTel will use the Shs300bn ($80m) capital injection to build its 4G network so that it will be scaleable to 5G. This will involve a two-part strategic roll-out plan that will entail both asset building and sweating the assets.
During the asset-building stage, UTel will invest heavily in infrastructure and customer acquisition. The goal during this stage will be to revamp operations and upgrade the company’s 2G network to 4G. That said, a sizeable subscriber base is a critical asset within the telecoms sector. As part of our strategy, we will aggressively drive customer acquisition in the first part of the rollout. Owing to the large investments that are required, we anticipate that the first part of our strategy will be one that is a loss-making period for UTel.
How will you navigate a highly competitive telecoms landscape, and what strategies will you employ to meet the diverse needs of your customers?
First, we will position ourselves as a champion of consumers that drive innovation and investment to offer a clear alternative to incumbents with product-centric and quality-focused positioning. Second, we will leverage costs on effective technology as a key enabler. UTel is not limited to the 3G legacy systems, and therefore there is a focused implementation on 4G, which delivers lower costs of ownership. Lastly, we will offer friendly pricing and besides the price point, UTel will simplify its pricing to deliver a sense of fairness, integrity and transparency.
What is your vision for the future of UTel?
UTel’s vision is one in which a prosperous nation has within it, digital services that are within reach for all. Digital services are within reach if the customer can seamlessly access them in every part of the country. If the customer can afford UTel’s products and consume the products without worry of the price because consumers are receiving the proper value for their money, then we have been successful in our mission.
