UCC: Starlink Must Comply with Uganda’s Legal, Regulatory Framework

Since it was announced that Starlink had been granted a licence to operate in Uganda, there has been significant debate around what this means for Uganda’s communications sector and the terms of the licence in particular.

Taxation of Starlink and data sovereignty are two of the key issues that have come up in this debate.

Starlink has secured both an infrastructure and service provisional licence that will enable the company to operate satellite services in Uganda. This license also permits them to share their infrastructure with other licensed operators through commercial agreements that will enable these operators to expand their existing services across the country, particularly in unserved and underserved areas.

Regarding taxation, during negotiations with Starlink, the Uganda Government and the Uganda Communications Commission stressed the importance of revenue assurance and full compliance with Uganda’s tax laws as a core condition of their entry into the Ugandan market. Starlink committed to paying all taxes due to the Government of Uganda in parity with other licensed operators.

Telecom operators in Uganda face a combination of standard corporate taxes, consumption taxes, regulatory fees or levies due to UCC, and other obligations. Starlink, being a locally registered entity, will face similar taxes as other Internet Service Providers (ISPs) in the country, irrespective of the choice of technology deployed. These taxes include Corporate Income Tax, VAT, Excise Duty, regulatory fees and levies, Withholding Tax, Import Duties on equipment and hardware, and PAYE for local employees, among others.

Besides, UCC operates a balanced technology-neutral regulatory regime in practice, to which entities such as Starlink are not exempt. This approach ensures that all operators shoulder equivalent tax and compliance obligations while operating in the sector.

In regards to data sovereignty, Starlink functions as a satellite-based provider, which is often described as “virtual” in the sense of minimal terrestrial footprint. This has raised sovereignty concerns around data routing, interception, and foreign control globally. UCC has addressed this through explicit license conditions focused on localisation and oversight.

The key measures incorporated within the Starlink licensing conditions include a national gateway with a physical point of presence in Uganda where traffic for Ugandan users must route through local infrastructure, enabling lawful interception, monitoring, and compliance with national laws. This is in alignment with the Data Protection and Privacy Act.

Starlink is also required to ensure the local registration of all devices activated within Uganda to enhance accountability and support regulatory enforceability in accordance with national laws.

Overall, Starlink must comply with Uganda’s legal and regulatory framework governing security, data governance, consumer protection and content regulation. These requirements help mitigate concerns associated with data being routed and managed entirely offshore, a challenge commonly linked to pure satellite service services.