Yesterday, When the all country engaged on the state of the nation address Uganda Communications commision (UCC) issued a new licensing price for the pay-TV providers in the country from shs22m annually to shs95m. Earlier at the beginning of the year, the commission had asked the pay-TV providers to pay shs550m in-license a proposal that sparked controversies eventually leading to another negotiation that harmonized the license fee to shs95m ($25,000).
The new licensing regime could impact a high-end users subscription rates despite the fact the country moved to digital broadcasting about 3 years ago two years after the international dateline. The list of pay-TV providers increased significantly over the past couple years following the government decision to go digital which saw the end users (citizens) benefits a lot from the fight for clients which entailed favourable prices and more channels to view. The drastic increase in the license could see an overhaul change in the subscription fee which makes the life of an average citizen unbearable to enjoy the pay TV services.
Here are some of the requirements for the new licensing regime. Agreements between pay TV and UCC.
- UCC agreed with the submission by pay-TV operators that operators without the physical infrastructure in Uganda shall not be allowed to obtain public infrastructure provider (PIP) licenses.
- Only operators providing services through Terrestrial, cable and other transmission infrastructure shall be required to obtain PIP licenses.
- All broadcasters providing services to the final consumers shall be required to obtain a public service provider (PSP) license.
- PIP license shall be for a period of 15 years, renewable upon satisfactory performance of the license terms and conditions.
- PSP license shall be for a period of 5 years, renewable upon satisfactory performance of the license terms and conditions.
- Existing pay-TV operators in Uganda not be required to pay initial entry fees for any of the license applied for.
- Pay TV operators shall pay an annual license fee of $25,000 or 0.65% of the operators gross annual revenue. Every pay TV operators shall be required to submit audited books in accordance with the reporting requirement.
- Pay Tv shall carry a minimum of 20% local content on their broadcasting platforms.
- Where, for whatever reason, a pay TV operator failed to meet the 20% local content threshold, the commission shall determine the amount of monetary contribution to be made by the respective operators towards the content development fund.
Source: Daily Monitor
