Uganda’s telecoms sector is forecast to experience intense competition in 2014 owing to an economy that is projected to grow 6.2%, says the Uganda Communications Commission (UCC).

The UCC argues that this means more people may be able to afford mobile phones.

Currently, the East African nation’s mobile penetration rate stands at 16.8 million, according to the UCC. Uganda has a population of 36.35 million, say World Bank figures.

Fred Otunnu, Uganda Communications Commission publicist, has been quoted in reports as saying, “Obviously the competition is likely to be stiffer compared to last year, all firms are reorganising their businesses to retain and attract more subscription, we are like to see a higher surge.”

According to global telecoms researcher BuddeComm, a more streamlined regulatory approach is helping to boost telecoms growth in the country as well.

“A simplified and converged licensing regime has significantly reduced barriers to market entry and increased competition. With annual GDP growth forecast to rise from currently 4% to 7% in 2015 and the following years, growth prospects for Uganda’s telecoms sector are excellent,” says BuddeComm on its website.

Telecom operators with operations in the country include the likes of MTN, Bharti Airtel and Orange.