Lycamobile, the UK-based MVNO group founded in 2006 to provide low-cost international calling to expats in Europe, has announced it is entering the Ugandan market.

The company says it will invest $100 million in the next three years and hopes to create 600 jobs in Uganda.

This move by Lycamobile further increases competition in the Ugandan market, where there are around 25 million subscribers (71% penetration rate). Market leader, MTN Uganda, has around 11.2 million of those, Airtel Uganda 9.8 million and Africell Uganda 3 million, with the remainder spread across smaller players. There have already been several operators fail within the Ugandan market, such as Vodafone Uganda which ceased operations in 2018.

Lycamobile says it will compete in the Ugandan market by providing high-speed, high-quality internet connectivity and better call services. Unlike other players in the market, Lycamobile are specialists in providing low-cost international calling, which will allow them to expand into the Ugandan diaspora market.

“We want to have unrivaled 4G internet and we hope to roll out our services throughout the entire country in the next six months,” Lycamobile’s Jeya Seelan was reported as saying by PML Daily.

Lycamobile is reported to have signed a deal with Tangerine, which has network across Mukono, Kampala and Wakiso.

Posted by Teresa Cottam

Teresa is the Chief Analyst at Omnisperience and has over 25 years' experience in the telecoms and technology markets. She is an expert on SME and enterprise telecoms, and has considerable vertical market expertise. Her research focus lies in helping B2B telecoms firms become more commercially successful by better understanding and meeting their customers' needs. She is a judge of the GSMA Global Mobile Awards (GloMo's) for customer experience and enterprise innovation, and for the UK Cloud awards. You can follow her on Twitter @teresacottam

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