A new telecommunication company, K2 Telecom, was launched on New Year’s Eve into Uganda’s telecom market, in what telecom operators in the country have said will not make significant impact on the already “congested” industry.

Ugandan newspaper, Daily Monitor quotes Donald Nyakairu, Uganda Telecom Managing Director, as saying: “I think the industry is not only over licensed but congested,” considering there are already over 70 licensed companies in the country which has a 15 million market size.

The country currently boasts of seven telecom operators including Airtel, MTN, Warid, Orange Uganda, with K2 telecom being the latest entry to the competition.

According to report, analysts say existing major service providers have exhausted the Ugandan telecom market, with nothing new for K2 Telecom to offer subscribers.

However, an official statement issued on Monday by the K2 Telecom says the company “will provide solutions to different market segments among the people of Uganda.”

Mr Shaban Sserunkuma, a consumer activist, also welcomes the entrance of the indigenous company, according to PC tech magazine.
“We welcome the new player. For long we have been treated to poor quality services. And if the new player can enhance competition then that is good news,” he remarked.

Following a diplomatic tune, MTN GM, corporate service, Mr Anthony Katamba, said K2 Telecom had the right to offer its services because Uganda is a liberalised economy.

K2 Telecom, which has a national coverage, is owned partly by Buganda Kingdom, the largest of the four kingdoms in the western region of the country. The company has however not disclosed further details about its other owners, and the strength of its investment capital.