Lycamobile is a globally recognized brand, originally known as a British mobile virtual network operator (MVNO) operating in 23 countries. However, this definition no longer applies to Lycamobile in Uganda. As of 2021, Lycamobile Uganda has transitioned from being an MVNO to securing a National Telecommunications Operator (NTO) license, marking a significant shift in its operations and impact on the Ugandan telecom market.

From MVNO to NTO: A Major Shift

In the past, Lycamobile Uganda operated as an MVNO, meaning it didn’t own its own network infrastructure. Instead, it leased network services from established operators like MTN or Airtel to provide its own branded services, often focusing on specific niches like affordable internet data, international calls, and voice minutes. This model allowed Lycamobile to offer competitive rates without the overhead of maintaining a physical network.

However, the landscape changed dramatically when Lycamobile Uganda obtained an NTO license in 2021. This license upgrade means that Lycamobile is no longer just renting infrastructure; it now has the authority and responsibility to build, manage, and operate its own network across the country.

The Implications of Lycamobile’s NTO License

This shift from MVNO to NTO brings several key changes that affect both the company and its customers:

1. Independent Network Operations:

   • With the NTO license, Lycamobile Uganda is now in control of its network infrastructure. This autonomy allows the company to ensure better service quality, improve coverage, and quickly adapt to market demands without depending on third-party operators.

2. Increased Investment and Expansion:

   • As an NTO, Lycamobile is required by the Uganda Communications Commission (UCC) to expand its network coverage to reach at least 90% of the country within five years. This commitment means significant investment in infrastructure, including the construction of new cell towers and the enhancement of existing ones.

3. A More Competitive Market:

   • Lycamobile’s transition to an NTO intensifies competition in the Ugandan telecom market. With the ability to control its network, Lycamobile can offer more competitive pricing, better service packages, and enhanced customer service. This competition is likely to benefit consumers through lower prices, improved service quality, and more options.

4. National Roaming Capabilities:

   • The NTO license also brings the capability for national roaming, allowing Lycamobile customers to seamlessly access services across different regions, even where Lycamobile’s own network may not yet be fully established. This ensures continuous coverage, leveraging partnerships with other operators when necessary.