The battle lines have been drawn. Communications regulator-The Uganda Communications Commission and leading television service providers Zuku, Kwese, Star Times, DStv and Azam TV are in a bitter exchange over license fees accruing from the new tax regime that UCC implemented for 2018.
First to hit the spot was UCC who in a newspaper advert reminded the television stations to immediately comply with the new license regime or otherwise stop broadcasting services.
Battle over new rates
According to UCC, the new licensing regime is a result of the move from analogue to digital. “Following the transition to digital broadcasting, the commission took an extensive consultative process culminating in the production of a new licensing framework effective 1st January 2018”
The new directive did not however go down with pay tv providers who shot back with a press release refuting the public notice issued by UCC labelling them as “non-complaint”.
We feel cheated-Pay TV operators cry out
The operators said UCC’s new tax regime was exorbitant and unsustainable. The operators claim the commission wanted to increase their annual licenses by over 2400% from(7,000 Usd) 22,000,000 Ugx to 150,000 Usd (550,000,000 Ugx), plus 2% of the operator’s gross annual revenue.
The operators in a move that will see pay television become unreachable for the ordinary Ugandan, have threatened to pass on the costs to their customers.
In a show of solidarity, the pay tv operators who issued a joint press release said they were committed to constructive engagement with the UCC to develop an enabling new licensing framework that covers the interests of the consumers, the broadcasting industry and the country as a whole.
“As long term investors and tax payers in Uganda, we remain committed to resolving this licensing impasse amicably and in good faith” read their statement.
