MTN and Airtel Face $7M Hit After Uganda Restores Social Media Access!

Published 3 weeks ago2 minute read
MTN and Airtel Face $7M Hit After Uganda Restores Social Media Access!

Mobile network operators, MTN and Airtel, experienced significant financial losses in Uganda, estimated at $7 million (UGX 24 billion) in data revenue, following a four-day internet shutdown across the country. This substantial loss highlights how internet restrictions not only impede daily life for citizens but also severely impact the revenue streams of telecommunications companies. During the blackout, Ugandans faced considerable frustration due to their inability to conduct crucial financial operations and engage in other online activities.

The internet shutdown was initially imposed by the Ugandan Communications Commission (UCC) two days before the January 15 general elections. Authorities justified the decision, stating its intent was to prevent misinformation and maintain national security amidst escalating political tensions leading up to the polls. Mr. Nyombi Thembo, Executive Director of the UCC, affirmed that these restrictions were implemented to ensure a peaceful electoral process and safeguard the peace of Ugandans and the entire nation.

The restoration of internet access unfolded in phases. Five days after the initial lockdown, the government restored general public internet access, including web browsing, news websites, educational resources, government portals, financial services, and email. However, social media platforms and over-the-top (OTT) messaging applications, such as WhatsApp, Facebook, TikTok, X (formerly Twitter), and Instagram, remained temporarily restricted. This partial restoration aimed to continue guarding against misuse that could threaten public order, as explained by Mr. Thembo.

A significant relief came when MTN confirmed the restoration of mobile money services two days after the first phase of internet restoration. This allowed users to resume depositing, withdrawing, and performing other essential financial transactions, alleviating a major source of public inconvenience. The complete restoration of all social media platforms and full internet access was finally announced by General Muhoozi Kainerugaba, Uganda’s Chief of Defence Force, via a tweet on a Monday, 13 days after the initial blackout.

General Kainerugaba expressed gratitude to the citizens for their cooperation and support throughout the electoral season, acknowledging their adherence to the policy helped maintain the electoral process. MTN Uganda also confirmed the full restoration of services on X, stating, “Y’ello, our dear customers. Internet services are fully restored. You can now get back to what you love on WhatsApp, X (Twitter) and TikTok.” This development marked the conclusion of Uganda’s phased process of restoring full internet access, bringing huge relief to its citizens who can now freely access all digital communication platforms.

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