Telecom firms spend $60 million annually to power networks

KAMPALA, Uganda — Telecom companies in Uganda are spending more than $60 million annually to keep network sites running as limited access to the national power grid leaves hundreds of towers idle.

The findings, published Dec. 12 in the Uganda Communications Commission Annual Communications Sector Report 2025, reveal that at least 780 installed towers are currently non-operational because they lack a connection to electricity.

According to the UCC, only 25% of Uganda is connected to hydroelectric power. This forces providers to rely on expensive alternatives, such as diesel generators and solar energy systems. The commission noted that equipping a single site with transformers and backup power sources can cost between $60,000 and $270,000.

The high cost of power is one of several financial barriers cited in the report. Operators also face a 35% import tax on galvanized steel used for tower construction and steep regulatory fees for sites in protected areas. For instance, installing a tower in a national park requires $20,000 in upfront rent to the Uganda Wildlife Authority.

These combined expenses have led to a concentration of infrastructure in commercially viable urban centers. The Central region, including Kampala and Wakiso, currently hosts 44% of all telecom towers in the country.

The UCC warned that these sustained costs and infrastructure gaps are hindering national efforts to expand digital connectivity, particularly in rural areas where the commercial return is lower.