Mobile phone subscribers now spending more on data than calls
Money spent by mobile phone subscribers on data increased by 11 percent to a monthly average of Shs8,234 from Shs7,327. Photo / File
What you need to know:
- Mobile phone subscribers are spending more money on data than any other telecom service
Mobile phone subscribers in Uganda are now spending an average of Shs13,365 per month on mobile phone services, according to a report by Uganda Communications Commission (UCC).
The report, which reviews the quarterly performance of the telecommunication sector, indicates that the average monthly spend on telecommunication services among Ugandans on products such as data, calls, and short text messages, among others, increased by 4.2 percent in the three months to June from Shs12,797 to Shs13,365, an increase of Shs568.
The increase, the report indicates, contributed to the growth of telecom sector revenues, which during the period increased by Shs110b, grossing Shs1.66 trillion, a growth from Shs1.55 trillion registered in the quarter ended March.
The telecom sector has been registering tremendous growth in both value and service portfolios, largely driven by an increase in data consumption – supported by rapid growth in internet penetration to 16.4 million active users and smartphone usage, which rose to 16.7 million from 15.8 million – and the continued diversification of mobile money services.
Voice, even as it continues to experience contractions, still contributes the largest share of telecom sector revenues.
The report further indicates that in the three months to June, mobile phone subscribers, who increased from 37.4 million to 38.7 million, spent more money on data than any other telecom service, demonstrating the rising influence of data as a growing revenue stream that has largely been driven by the growth in social and financial services applications.
For instance, money spent on data increased by 11 percent to a monthly average of Shs8,234 from Shs7,327, equivalent to four gigabytes, while expenditure on same network calls reduced to Shs4,534 from Shs4,872 in the three months to April.
However, expenditure on cross-network calls increased slightly to Shs446 from Shs349.
During the three months, the report indicates that at least 195.7 million gigabytes of data were consumed monthly, which was an 11.5 percent increase from 175.5 million gigabytes registered in the quarter ended April to 195.7 million.
The report also indicates that there was a slight reduction of 5.6 percent in the person-to-person value of mobile money transactions, reducing from Shs88,670 in the three months to April to Shs83,649.
Mobile money subscriptions grew to 44.2 million from 42.5 million, but only 29.4 million were active in the period under review.
A mobile money account is deemed inactive if it doesn’t conduct a transaction for at least 90 days.
The telecommunications sector has remained resilient, registering growth across a number of its services portfolio.
