Lycamobile Uganda Denies Closure Claims

Lycamobile, a telecom company, commenced operations in Uganda in 2020, joining the ranks of licensed telecom providers in the country.

What happened to Lycamobile Uganda in early DECEMBER 2023?

Recent reports were suggesting the closure of Lycamobile, but the origin of these claims remains unclear. Lycamobile, however, has swiftly dismissed the closure allegations, attributing the issue to a temporary service outage.

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What caused the Lycamobile Uganda outage?

The reported outage, according to Lycamobile, was a result of an expansion in its network infrastructure. The company clarified that the disruption was limited to its data services, lasting for less than an hour. Notably, voice, short text messages, and USSD services remained operational during this period.

So what did their management say?

In an official statement, Lycamobile emphasized its commitment to enhancing services to reach a broader customer base, including those in remote areas. The downtime was framed as an unexpected occurrence during the ongoing improvement of the network.

What do we expect from Lycamobile Uganda in the future?

Since its launch in 2020, Lycamobile has expressed long-term plans, with an initial investment commitment of over $100 million. The company has even applied for a license to offer mobile money services, indicating a broader scope beyond data services.

Challenges and Expansion Efforts:

Despite its aspirations, Lycamobile faces challenges, particularly with services limited to urban areas. The company, along with UTL and Ala Technology, faced setbacks in securing a 5G spectrum from the Uganda Communications Commission (UCC) in June.

Is the poor network a red flag for UCC?

A quality of service report by UCC in October shed light on Lycamobile’s struggles in achieving the required call setup success rate, especially in 25 towns across Uganda. The report highlighted difficulties in meeting the 95 percent or higher call success threshold, with performance varying across districts.

What does UCC say about Lycamobile Uganda?

The UCC report attributed Lycamobile’s dropped calls to limited coverage and poor signal quality. Coverage gaps, including blackspots, were identified as significant contributors to the quality of service shortfalls. The regulator noted that addressing these issues is a crucial license obligation for all operators.