Africa: Internet Edges Out Postal Services
Growth in the use of the Internet and mobile messaging in Uganda have led to a gradual decline in volume of letters posted and received domestically and abroad.
The volume of traffic is measured by the number of letters, parcels and registered items over a specific period of time.
According to a report released by the Uganda Communications Commission (UCC), for the financial year 2006/2007 the average decline was by twelve percent as a result of competition from the new services such as internet and mobile messaging.
Statistics from the commission indicate that in the year 2002 nine million letters were posted but these excluded official letters while five million were received from abroad.
In 2003 there was a sharp decline in the letters posted to seven million but there was an increase from the five million received to about 5.5 million.
However in 2004 there was an increase in the letters posted to 8.5 million while letters from abroad reduced to 4.5 million.
“In the year 2005 letters posted dropped to about 6.5 million and those received from abroad were about 3 million,” said the commission executive director, Patrick Masambu in a report released by Uganda’s postal and telecommunications sector.
In 2006 the letters posted declined further to 4. 8 million and those received went down to 2.8 million and by June 2007 posted letters dropped to 5 million while letters received dropped 2.6 million.
He said that however parcels and registered mail continued to register increased growth and for the financial year 2006/2007 the volume grew by 33 percent.
The report says that internet subscribers grew by thirty percent during the same financial year from 11 000 to 15 500.
New internet pricing schemes have emerged in the market such as capacity based pricing among others.
“Although internet prices have dropped but prices are still relatively high compared to regional and international markets.”
“The challenge is to ensure that we maintain an efficient and competitive market and ensuring affordable and universally available services which should translate into productivity and economic growth of the country,” he said.
He said the country is still faced with an absence of a national competition law required for the holistic regulatory and competition guidance at the multi-sectoral level.
