The removal of the daily Shs200 on the Over the Top (OTT) tax on social media has encouraged more Ugandans to use mobile data, the Chief Executive Officer of MTN Uganda has said.
Wim Vanhelleputte says since the OTT tax was scrapped at the beginning of the current financial year in July, more people are using mobile data than before.
“Over the top (OTT) tax had affected the use of mobile data because an individual needed two hundred shillings daily before getting connected to their social media accounts,” he told journalists in Kampala on Wednesday.
“With the removal of OTT, we are seeing more people adopting the use of mobile data which is good for the telecommunication business,” he added.
Vanhelleputte further explained that despite the government introducing the 12% tax on the internet, the number of people using mobile data has increased.
The government introduced a 12% tax on internet data starting July 1, 2021. This was part of the Excise Duty Amendment Bill, 2021 that also introduced new taxes on fuel.
Mr Vanhelleputte also explained the adoption of data usage means that the demand for voice calls will soon decline hence the need for increased investment in data services infrastructure.
“We have thus decided to invest Shs1 trillion in network development by developing new sites so that the entire country gets covered with better speeds to ease our customers’ way of doing business,” he added.
“This involves investment in technology platforms to not only improve customer experience but offer an even wider range of services. Data and Fintech services remain key to driving growth in the medium and long term,” he added.
He revealed that whereas MTN Uganda has 15 million customers, only about 4 million are mobile data users.
“With the smartphone penetration going up we can expect double or triple mobile internet users in the years to come,” he said.