MTN, Airtel dominance forces another telecom operator out of Uganda

On September 7, Africell announced its decision to leave Uganda after operating in the East African country for seven years. The decision saw the U.S-owned company become the latest network operator to throw in the towel and exit a market dominated by two pan-African telecom behemoths.

A statement issued by Africell blames tough competition from the local units of MTN and Bharti Airtel, both of which account for more than 90% of the market share. The remaining 10% is split between three or four other nationwide operators including Africell and Uganda Telecom.

South Africa-based MTN Group, Africa’s largest telecoms operator, entered Uganda in 1998 and has since established dominance in the market; largely due to first-mover advantage and significant investments the business has made in Uganda. Continue reading

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