In a move expected to significantly transform Uganda’s digital landscape, the government has announced that it is in the final stages of a historic licensing agreement with Starlink, a subsidiary of Elon Musk’s SpaceX.
This development follows a direct directive from President Yoweri Museveni to the Ministry of Information and Communications Technology (ICT) and the Uganda Communications Commission (UCC) to facilitate a regulatory framework for this satellite internet provider.
This breakthrough comes after a month-long regulatory dispute during which Starlink equipment had been blocked from operating across the country since January 2026.
A pivotal meeting held at State House Entebbe between Starlink executives, Uganda’s Ambassador to the UN Adonia Ayebare, and U.S. Ambassador William Popp shifted the direction of the negotiations. During the meeting, President Museveni expressed strong support for Starlink’s goal of providing fast and low-cost internet services to hard-to-reach areas.
The President remarked, “I appreciate their commitment to providing low-cost internet services to areas that do not have access and for ensuring their presence in Uganda.”
The dispute initially centered on the UCC’s classification of Starlink as a national telecommunications operator, which required a $20 million licensing fee. Starlink, however, argued that as a data-only (internet) provider, it should not be treated the same as companies like MTN or Airtel that provide voice and mobile money services.
The new framework is expected to introduce a specific category called “Satellite Service Provider,” a compromise that allows the government to maintain oversight while helping Starlink keep operating costs low to offer affordable prices to customers. Additionally, Starlink has expressed its willingness to provide wholesale services to local internet service providers.
A critical part of the agreement involves meeting Uganda’s strict security requirements. Historically, the government has shut down the internet during sensitive times, such as the January 2026 general elections.
Since satellite networks do not follow standard infrastructure, Starlink has agreed to build a physical ground station in Uganda, open a local office to respond to regulatory and security requests, register to pay local taxes, and create job opportunities for Ugandans to address these concerns.
With internet access in Uganda currently at only about 30%, Starlink’s entry is believed to hold great potential for the “Digital Transformation Roadmap.” Presently, 77% of the Ugandan population lives in rural areas where laying fiber optic cables is prohibitively expensive.
Although the cost of Starlink equipment—typically ranging from $200 to $400—remains a challenge for individual households, the government aims to use the service for “community centers.” Schools, health centers, and tourist lodges (such as those in Karamoja or Bwindi) will soon be able to access speeds exceeding 100 Mbps, which were previously only available in Kampala’s business districts.
