Protecting the Digital Gains: How a Government IXP Could Undermine Uganda’s Future

Why Market Forces Should Drive IXP Ecosystem Growth

Overview

Uganda’s Internet ecosystem has achieved remarkable progress over the past three decades. Sound regulation, private-sector investment, and community collaboration have created one of the most competitive markets in the region. Wholesale bandwidth prices have dropped from roughly $5,000 to $0.50 per megabit in just 15 years, and nearly all networks now interconnect locally through the Uganda Internet Exchange Point (UIXP), a neutral, non-profit service that enables fast, secure, and affordable traffic exchange.

Uganda’s well functioning industry has attracted investment from infrastructure developers, international wholesalers, global content providers, and local access networks – fostering competitive pricing dynamics and sophisticated commercial collaborations. Uganda also recently attracted its first carrier-neutral data center, Raxio, which is a critical facility for hosting large-scale content, facilitating interconnection, and strengthening Uganda’s position in the regional digital economy.

Recently, however, the National Information Technology Authority (NITA-U) announced plans to launch a government-run Internet Exchange Point (IXP) with an ambiguously worded requirement for "Mandatory Domestic Peering" which suggests that ISPs may be obligated to exchange domestic traffic at the new IXP, though the scope and enforcement of this requirement remain unclear. Separately, consultants hired by the Uganda Communications Commission (UCC) produced a market study which recommends the deployment of additional IXPs in secondary cities based on sources and methodologies provided by ChatGPT.

While these initiatives may be well intentioned, they could undermine Uganda’s hard earned gains by prematurely fragmenting the market, thereby slowing Uganda’s growth and inhibiting its ability to develop as a regional Internet hub. Furthermore, because all networks are already interconnected, a new government IXP cannot deliver the promised benefits of lower costs, faster speeds, or improved security. Forcing networks to peer at a new IXP, rather than letting the market decide if it needs the service, risks adding complexity without adding value, thereby raising service delivery costs and discouraging investment without providing a clear benefit to the industry, the public, or even the government itself.

Uganda is already on a strong path. If we stay the course, the country will naturally reach the scale where multiple IXPs can coexist sustainably based on market-driven demand. Policymakers can accelerate this outcome by reconsidering plans for a government-run IXP in favour of safer alternatives such as Private Network Interconnects (PNIs) for critical bilateral traffic flows. At the same time, the government should continue to support the existing IXP and data center ecosystem, reduce Internet taxes to stimulate demand, facilitate private investment, and work to promote overall economic development.

 

Preface: A Note on Perspective

As Uganda’s only existing IXP operator, we recognise that some may view our position as self-interested. However, the UIXP was founded in 2001 as a non-profit community initiative and has actively defended open market access including the right for other IXPs to emerge when market demand supports them. Our position is guided not by self-preservation, but by experience, data, and international best practice which we encourage readers to verify through the references provided.

Over nearly two decades, we have built a strong and respectful relationship with the Government of Uganda based on transparency, trust, and collaboration. Multiple government networks are now connected to our exchange and even pay to support the platform’s sustainability. Two of these networks (UTL & NITA) have partnered with us on initiatives such as the Google and Akamai caching projects. We also work closely with various government agencies on security and technical matters from time to time.

In that spirit, our hope is that this post can provide an academic and evidence-based contribution that helps the government avoid actions that could unintentionally harm Uganda’s Internet ecosystem and economy. 

 

How the Internet & IXPs Work

The Internet is not a single network, but a "network of networks," whereby thousands of independent networks operated by service providers, governments, and content companies interconnect to exchange data. These interconnections can occur in several ways, but the most efficient and scalable way is through Internet Exchange Points (IXPs) which are neutral switching platforms where multiple networks meet to exchange data traffic directly.

A simple economic rule underpins the Internet: "Distance = Cost." The closer content and users are to each other, the faster and cheaper their communication becomes.

In Uganda, most of the content and services people access are hosted abroad. This international traffic reaches the country via submarine cables landing in Mombasa and Dar es Salaam, then travels inland through cross-border fibre connections. Because this data must traverse long distances, it is relatively costly to deliver and slower to reach end users.

IXPs like the Uganda Internet Exchange Point (UIXP) make it easier and more cost-effective for networks and platform providers to host content and services locally. This allows them to serve users from Uganda rather than from abroad. This lowers the overall cost of Internet service delivery, improves Internet performance, reduces Uganda’s reliance on international links, and makes investment in data centers and digital infrastructure more attractive.

Beyond improving performance and affordability, IXPs strengthen national resilience and security by keeping domestic traffic within Uganda, ensuring that it can continue to flow even if international links are disrupted. However, IXPs are not the only way networks can interconnect: operators can also establish Private Network Interconnects (PNIs) or exchange traffic regionally through facilities in neighboring countries. A healthy Internet ecosystem supports multiple interconnection models while letting the market determine the most effective approach. 

 

The State of the Internet in Uganda

For three decades the government, industry, and local community have fostered healthy competition and growth. Today, Uganda’s Internet ecosystem is strong, resilient, and sophisticated:

• Multiple cross-border fibre routes connect Uganda to the global Internet via the Kenyan and Tanzanian coast, and inland to Rwanda, South Sudan, and DRC.
  
  
• The backbone and metro fibre markets are open and competitive with robust infrastructure sharing. Advanced offerings including dark fibre are available from multiple operators including C-Squared.
  
  
• The access service provider market is vibrant with both local, regional, and global operators covering mobile, wireless, and fixed-line communications. Competitive dynamics have led to rapid retail price reductions and Uganda now boast some of the lowest access prices in the African region.
  
  
• Tower and data center infrastructure has diversified, culminating in the recent launch of Raxio, the country’s first carrier-neutral data center.
  
  
• The non-profit UIXP interconnects all networks within the country, operates with excess capacity, and has strong community support. The UIXP is considered a model IXP within the region and plays a leading role in various pan-African institutions. Its success has attracted regional networks and global content providers including Akamai, Meta, and Netflix which now host their data locally, directly improving user experiences and keeping value within the country.
  
  

The results speak for themselves: wholesale bandwidth prices have fallen by more than 99% in just 15 years, while Internet accessibility and reliability continue to improve. These are the hallmarks of a healthy, competitive market that is steadily moving toward the scale needed to support multiple IXPs.

But Uganda does not operate in isolation. It competes directly with Kenya, a more established regional hub where open policy and market demand have naturally produced several private IXPs and data centers. Kenya benefits from coastal access and a larger economy, so Uganda must capitalise on every competitive advantage it has and avoid policy missteps that could weaken its attractiveness to investors, content networks, and other players. 

What Is the Government Proposing?

In October 2025, NITA-U announced the creation of a government-run IXP called the National IP Peering Exchange (NIPX), with a "Mandatory Domestic Peering" requirement which states that networks would be "encouraged and, where applicable, required to exchange domestic traffic at the NIPX." The stated goals include improving performance, reducing international dependency, and strengthening digital sovereignty. Yet no industry or public consultation appears to have been conducted prior to the announcement, and the referenced National Peering Policy is not publicly available beyond the information included in the announcement.

 

While we appreciate the implication that this new IXP will operate in parallel to the UIXP (and presumably other IXPs which could enter the market in the future), we have a number of concerns about this announcement which we will elaborate below. 

 

 

Separately, the UCC recently engaged consultants who generated an extensive market analysis report that recommends building two more IXPs in secondary cities based solely on population-based formulas cited from an uncorroborated ITU report. Alarmingly, this recommendation and the wider report appears to have been generated by ChatGPT, casting doubt on its methodological rigor. We understand that the UCC conducted a validation workshop for this report, but we were not included in that process and do not know if they intend to pursue this specific recommendation.

 

 

There is clear evidence that ChatGPT was used
to generate the consultant's report.

These initiatives, though independent and presumably well intentioned, raise concerns because they would introduce significant changes without clear evidence of market demand. In particular, a mandatory government-run IXP risks prematurely splitting Uganda’s interconnection ecosystem, creating uncertainty in a market that is currently stable, efficient, and performing well.

 

Exploring the Motivations for a Government IXP

The logic behind NITA’s IXP announcement and the UCC consultant’s recommendations sound appealing — increased digital sovereignty, faster speeds, lower costs, and greater security — but in Uganda’s case, these issues are already addressed:

• Digital Sovereignty: All networks in Uganda interconnect via the UIXP, which means that domestic Internet traffic is already localised and local hosting is already viable. Instead of trying to duplicate this capacity, the government should try to build on it by promoting content and service deployments in Ugandan data centers like Raxio.
  
  
• Performance: Because domestic Internet traffic is already localised, a new IXP cannot provide additional performance benefits. Deploying IXPs in secondary cities would not benefit networks or users in those areas because they mostly access content and services hosted in Kampala, Nairobi, and beyond where network effects and economies of scale are large enough to accommodate them.
  
  
• Cost: Creating a new IXP before the industry needs it — and forcing networks to connect — would increase operational complexity and cost without adding value.
  
  
• Security: The government has dedicated network infrastructure, and its inter-network traffic is (or should be) encrypted. Re-routing inter-network traffic through a government-controlled IXP would provide no additional security benefit which could not otherwise be achieved by establishing Private Network Interconnects (PNIs) for critical bilateral traffic flows.
  
  

Beyond the stated objectives, some might wonder if the government's motivations include a desire for money or control, but we think these would also be misguided:

• Most IXPs are non-profit for a reason: they are not money-making ventures, and the opportunities for profit in Uganda are extremely limited. The UIXP, for example, operated entirely on volunteer effort and donations from 2001 to 2017. Even today, with around 30 connected networks, it only earns enough to cover operations, pay salaries, and ensure long-term sustainability. Simply put: There is no "gold mine" in running an IXP, and a government-run IXP would likely become a recurring cost rather than a source of income.
  
  
• When it comes to control, a government IXP would provide no additional leverage. The government can already exercise its monitoring and censorship authority through systems deployed inside the network operators — a far more direct and effective point of control. During the 2021 Internet shutdown, for example, the UIXP remained online to carry essential background traffic even as public access was cut off, demonstrating that IXPs are irrelevant to the government’s ability to restrict or shape access. If anything, they help critical systems continue functioning.
  
  

In summary, we believe the creation of a mandatory government IXP would have no clear commercial, public, or national benefit at this time.

The Likely Impact on Uganda’s Digital Ecosystem

If implemented now, a government IXP could have several unintended consequences:

• Premature Fragmentation: Forcefully splitting Uganda's limited demand for network interconnection across multiple IXPs without sufficient market demand could unnecessarily dilute network effects, thereby hindering Uganda's development as a regional content and interconnection hub.
  
  
• Higher Operational Costs: Similarly, forcing ISPs to connect to a government IXP without sufficient market demand could artificially inflate service delivery costs and increase network complexity.
  
  
• Reduced Investor Confidence: Sudden uncoordinated policy shifts, especially government forays into private markets, introduce uncertainty in a sector that depends heavily on stability and predictability.
  
  
• Slower Long-Term Growth: The resulting inefficiency and reduced investor confidence would slow market development, job creation, and economic growth.
  
  
• Wasted Public Funds: Building redundant infrastructure when private solutions already exist diverts resources from more pressing national priorities.

It is also worth noting that government IXPs tend to under-perform due to bureaucratic constraints, lack of neutrality, and limited operator trust. Government IXPs that mandate connections can drive networks away from the market, discourage investment, and, in the worst cases, create monopolies over interconnection — the opposite of what Uganda needs. 

In contrast, when a second IXP emerges organically, a private operator enters the market, offers services, and succeeds only if there is genuine demand; if not, the market naturally filters out unnecessary facilities. This voluntary, demand-driven model avoids premature fragmentation and maintains the coherence of the domestic interconnection environment.

In summary, rather than delivering the promised benefits, a mandatory government IXP could undermine the market-driven efficiency and industry collaboration that has powered Uganda’s progress to date, weakening its ability to attract investment and compete with more mature regional hubs like Kenya.

In time, as Uganda’s economy grows and the regional Internet ecosystem expands, a second IXP will become both viable and healthy for competition, but it should emerge naturally from market demand, not as a top-down intervention.

 

What Should Be Done Instead

 

The Ugandan Internet ecosystem is fundamentally well configured as evidenced by wholesale bandwidth pricing that is among the lowest in Africa and local interconnection rates that are among the highest in Africa. To strengthen it further, and to secure Uganda's future, the government should avoid duplicating what already exists and focus on facilitating growth by creating an enabling environment. Specifically:

• Establish Private Network Interconnects (PNIs) between government and private networks for important connections to achieve the same practical outcome without all of the costs and risks associated with launching a government IXP.
  
  
• Reduce Internet taxes which now account for over 50% of the cost of access in order to improve accessibility, increase demand, and improve market competitiveness.
  
  
• Facilitate investment and competition with incentives, by making it easier to do business in Uganda, and by avoiding unpredictable market interventions.
  
  
• Collaborate with the UIXP and other community stakeholders to find ways to attract more content and networks to Uganda as the government has successfully done in the past.
  
  
• Promote carrier neutral data centers like Raxio by deploying government services (such as NIRA) inside these facilities, and by avoiding actions that would unnecessarily weaken its colocation and interconnection ecosystems.
  
  
• Authorise LEO satellite systems like Starlink with in-country ground station requirements which localise user traffic and help to offset negative market effects.
  
  
• Engage in open consultation with industry and civil society before undertaking significant actions or policy changes to ensure alignment with local and regional market realities.
  
  
• Promote broader economic development because the Internet industry cannot grow unless the overall economy does.
  
  

If these steps are taken, Uganda’s market will continue to develop organically and will soon reach the scale where multiple neutral IXPs can coexist as part of a healthy, regionally competitive, secure, and sustainable Internet ecosystem.

Conclusion

Uganda’s Internet industry has thrived because it was built on market-driven investment, competition, and collaboration. A second IXP will one day strengthen this ecosystem, but only when there is enough demand to sustain it. Launching a mandatory government-run exchange at this moment would provide no clear benefit, would prematurely fragment Uganda's Internet industry, and would undermine the country's long-term growth prospects.

We encourage the government to take a step back, consult openly with stakeholders, and base its next moves on evidence and market realities. Uganda’s incredible progress over the past two decades has come from enabling market innovation, not directing it, and this strategy remains key to future growth. 

International experience shows that the Internet grows best when it is open, neutral, and driven by demand rather than decree. By staying true to these principles, Uganda can protect the gains that have made its Internet industry one of the most advanced in the region. 

Safeguarding Uganda's Digital Autonomy in a Low Earth Orbit Future

Low earth orbit (LEO) satellite Internet services are a hot topic in Uganda’s tech community, with services like Starlink frequently trending in online conversations as the government deliberates on whether to allow them in our market and under what conditions. 

The appeal of LEOs is clear: global coverage, fast deployment, and the promise of high-speed connectivity in even the most remote corners of the world. LEO operators such as Starlink, Amazon’s Project Kuiper, and SpaceSail represent a transformative shift in global telecommunications. They offer undeniable potential in markets where terrestrial infrastructure is limited or completely absent. However, in developing markets like Uganda, where the sector is evolving rapidly, we feel that it’s important to approach these developments with caution.

Uganda’s market has developed rapidly over the past 15 years. Wholesale bandwidth pricing has dropped from $4,000 to $1.50 per megabit. We now have multiple cross-border fibre backbones and good metro fibre coverage in most urban areas – with wireless and mobile networks extending beyond that. While there are still challenges, particularly around affordability due to taxes (which make up approximately 60% of the retail price), accessibility, and quality of service, the situation is improving rapidly, and the foundation for sustainable local growth and digital autonomy is in place.



The challenge with LEO services is that they bypass the terrestrial infrastructure that local operators and governments have spent years building. They send local Internet traffic into the sky, circumventing our fibre networks, Internet exchange points, and data centers. If these services were to gain significant traction, it could discourage future investment in domestic infrastructure, undermine the sustainability of local ISPs who employ Ugandans in large numbers, and create a significant digital dependency. Uganda would have
little leverage if such providers were to suddenly change their terms of service, restrict access, or raise prices, especially in a scenario where local alternatives have eroded.

A particular point of concern is the possibility that LEO services might not deploy a local IP node or ground station within Uganda. If user traffic is routed through the sky to neighbouring countries, or even further afield, it would encourage networks to host content and interconnect in those locations instead of Uganda. This would directly threaten Uganda’s emerging role as a regional network interconnection hub just as we are beginning to see momentum.

It is worth noting that Uganda offers some important potential advantages for LEO operators looking to establish ground stations. Our central geographic location within the East African Internet ecosystem positions us to deliver the lowest average latency to neighboring countries' networks. This makes Uganda a strategic choice not only for national connectivity but also as an inland regional hub for LEO infrastructure.

In summary, we’re not opposed to LEO satellite systems and believe they can play an important role, especially in under-served areas – but if they are to operate in Uganda, we feel that it is essential to ensure that their integration is done in a way that supports, rather than undermines, our local ecosystem by requiring them to:

• Deploy a local IP node and/or ground station and route local user traffic via Uganda;
• Only provide service to users in rural areas;
  
• Register a local operating company, or partner with one, and pay taxes accordingly;
• Comply with all other relevant national regulations, just like any other operator.
  
  

These measures would go a long way in ensuring a level playing field and ensuring that the economic and technical benefits of LEOs are shared more equitably. However, even these conditions may not fully mitigate the risks, and policymakers should proceed with a clear understanding of the potential long-term impacts.

LEO satellite services hold exciting potential, but without thoughtful integration, they risk undermining investment in terrestrial infrastructure – the metro networks, fibre backbones, data centers, and exchange points that form the foundation of Uganda’s digital economy. This infrastructure is not just about connectivity; it is the key to our national autonomy and influence in the global digital landscape.

By establishing clear rules for LEO operators, Uganda can embrace this promising innovation while safeguarding critical investment, protecting skilled jobs, and promoting long-term growth.

Endowment Established, Netflix Connected, Akamai Revived, New Services Launched

Message from the Executive Director

2024 was an important year for the UIXP as we took significant steps to secure our long-term sustainability and enhance our service offerings.

We recently achieved a major milestone with the launch of an endowment fund that utilises conservative interest-bearing investments to generate income. This is a key part of our long-term strategy to secure the UIXP’s future; to reduce our service pricing; and to ensure that the UIXP can remain relevant amid looming competition from international players which can offer subsidised services.

We also expanded our service offerings, deploying a Netflix cache with donated cache-fill from Lyca Mobile, and restoring Akamai's cache to service using bandwidth contributions from RENU. In addition, we recently launched a locally hosted Jitsi video conferencing service and an AI social media bot to help improve our online presence. In the background, our infrastructure remains stable and we’ve made a variety of improvements to both physical and digital security.

Despite this progress, the year was not without challenges. Google's worldwide withdrawal from remote peering sessions impacted our ecosystem, while local market conditions such as high taxes and the lingering Facebook ban continue to suppress growth.

Looking ahead, we aim to grow the endowment fund, implement a new ERP with a self-service portal, expand our portfolio of locally hosted services, and continue our involvement in regional Internet communities and initiatives.

I encourage everyone to read the full report below for more details. As always, we are grateful for everyone's support and look forward to working together for the good of the Internet in 2025!

Kyle Spencer,
Executive Director

Endowment Fund Launched

We are proud to announce that we have launched an endowment fund in order to promote the UIXP’s long-term sustainability and reduce its dependence on traditional service fees.

The endowment is based on conservative interest-bearing investments which, starting this year, will cover 25% of the UIXP's annual non-salary operating expenses. The initial installment was made possible by years of savings, conservative financial management, and multi-year prepayments from some of our larger peers, including Meta.

We aim to grow this fund over time with the hope that it will eventually cover 100% of our total annual expenses. This would allow us to offer free or near-free services which would both facilitate the growth of Uganda’s digital economy and help the UIXP stay relevant in the future as our region faces increasing competition from international IXPs that can offer subsidised services.

 

Free Ports & Raxio Discounts

We would like to remind everyone that we offer free 100 Mbps ports at Raxio with no cross-connect charges. We also offer a 6-month 25% discount on all new services at Raxio so, if you would like to connect, upgrade your port, or learn more, please contact us.

 

New Value Added Services 

• Encrypted Video Conferencing: We recently launched a free web-based open-source video conferencing system which offers features similar to Zoom and Google Meet. All user traffic is encrypted and routed via the UIXP which helps to protect users from mass surveillance. We encourage everyone to give it a try and send us feedback: https://kafunda.uixp.co.ug

• AI Marketing Bot: We recently introduced an AI marketing bot that posts occasional promotional updates on Twitter/X. This complements our manual posts and helps to ensure more consistent engagement with our community and the public.

 

Peering Updates 

• 
  Summary: We began and ended 2024 with 32 connected networks and approximately 40Gbps of peak traffic. There was some churn during this period with some networks disconnecting and others connecting. There was also a mid-year traffic depression following the disconnection of Google’s remote peering session with a subsequent boost in traffic in November caused by the restoration of the Akamai cache (see below for more details).
  

• Raxio: We now have six networks connected at the Raxio carrier neutral data center with another connecting soon. As a reminder, we offer free 100M ports and significant discounts on new services at this facility so please contact us if you would like to connect or migrate your network.

• IPv6 Adoption: 33% of all networks (10 out of 30) are peering with our route servers via IPv6 though most traffic is still exchanged via IPv4. We encourage all networks to transition to IPv6 and we are happy to provide support where possible. Click here for a live list of networks peering via IPv6 in Uganda.

• New Peers: Netflix and Kampala Siti Cable [AS328727] connected to the UIXP in 2024, though the Netflix cache is connected to the UIXP via the UIXP’s ASN [AS328998].

• Netflix: We deployed a Netflix cache this year, made accessible to all connected networks through our route servers, with donated cache-fill from Lyca Mobile. However, this cache requires manual activation. To connect, networks must append their BGP announcements to the UIXP route servers with the community string 40027:4000. For more detailed instructions, read the documentation on our website or contact us via e-mail.

• Akamai: After a period of downtime, the Akamai cache was restored on an experimental basis using donated cache-fill from RENU. However, its output is currently limited by the amount of donated cache-fill bandwidth that is available as well as the capacity of the cache cluster hardware.
  
  Traffic from this cache is automatically served to connected networks via the UIXP route servers. However, Akamai’s systems automatically moderate traffic distribution based on a variety of factors (including cache capacity) which can influence whether or not your particular ASN gets traffic from this cache cluster.
  
  We are working with Akamai to upgrade the cache cluster hardware and expect this to occur in Q2 2025. However, in order for the upgraded cluster to increase its output, we will need more cache-fill bandwidth. If we are unable to get additional donated bandwidth, we may try to implement a cache-fill cost-sharing model.

• Google: Due to a global policy change, Google withdrew from all remote peering sessions around the world. This impacted the UIXP as Google was connected via a long-distance fibre link to their nearest PoP in Mombasa. We believe this decision was largely driven by the cost and complexity of maintaining these links.
  
  We explored the possibility of either (a) inheriting the management and cost of the transport link to Mombasa in order to maintain Google’s remote peering session, or (b) replacing Google's remote peering session with a shared Google cache but, in this case, we would need to source cache-fill IPT. Both options were difficult logistically and/or financially. In either case, we would not be able to serve Google traffic for significantly less cost than our peers can already get it via wholesale IPT and, in the remote peering scenario, Google's traffic would still originate in Mombasa so there would be no latency benefit.
  

 

Facility Updates 

• Our switching infrastructure and data center facilities continue to operate reliably. We’ve also strengthened physical and digital security to ensure a safer and more resilient service environment.

• As a reminder, we send technical alerts about significant events, planned maintenance, and unplanned outages to the UIXP Techies mailing list. If your network is peering but is not a member of this list, please contact us to get added.

Accounting & Tax Updates 

• In 2023 we experienced a number of account delinquencies, particularly from smaller networks, which we attributed to challenging market conditions. Throughout 2024 we worked with the affected networks to reduce these balances and are happy to report that almost all have returned to good standing. We sincerely appreciate everyone for honouring their commitments and will do our best to ensure that we can continue to be accommodating should similar challenges arise in the future.

• Our efforts to migrate to a new open-source accounting system were delayed and did not happen in 2024 as we had hoped. However, this remains on our agenda and we hope to undertake this project in 2024. Our goal is to streamline accounting and operational processes through increased automation while providing networks with a convenient self-service portal.

• We remain in good standing with URA and have not faced any significant compliance issues during the past year.

 

Market Challenges

• The 2021 Facebook ban continues to suppress overall utilisation of the Internet and our interconnection service. It continuously inflates the cost of Internet service delivery by forcing users and networks to import Facebook traffic from international sources rather than our local cache. This makes Uganda’s Internet more expensive and its market less attractive for regional interconnection & colocation relative to neighbouring countries.

• We remain concerned by the increasingly high taxes levied on Internet services which now account for over 50% of the total cost of Internet access in Uganda. Like the Facebook ban, this hinders demand and deters investment in Uganda’s digital economy.

 

Community Engagement

• UIXP staff continue to play both leading and supporting roles within the local and regional Internet community via the African IXP Association (AFIX), the Africa Peering and Interconnection Forum (AfPIF), and the African Network Operators Group (AfNOG).

• The UIXP remains a member of the ICT Association of Uganda (ICTAU) and Internet Service Provider Association of Uganda (ISPAU). We work with both organisations to promote market development and policies that are beneficial for our community.

Free 100Mbps Ports, New CDNs, and Infrastructure Upgrades

Message from the Executive Director

2023 was a good year for the UIXP despite some significant challenges.

We started off facing three long-term CDN outages and reduced income due to low demand but finished with four live CDNs, two new peers, and a small surplus. Peak daily traffic increased from 10 Gbps to 45 Gbps while IPv6 adoption increased to 33% of connected networks.

Along the way we restored Google's remote peering link to Mombasa, successfully deployed a new Meta cache, and will soon enable a new Netflix cache in collaboration with Lyca Mobile. We also upgraded our back-end virtualization platform, implemented new cross-site functionality, and enhanced our data storage systems with N+1 redundancy. In addition, new security measures were implemented as part of ongoing efforts to improve physical and digital security.

On the sustainability front, our cash reserves remain untouched and we maintain good standing with URA despite the usual challenges. However, we observed a rise in account delinquencies among smaller networks which we attribute to challenging macroeconomic conditions. In response, we are working with stakeholders to promote progressive government interventions.

We are also working to implement a new open-source accounting system which would provide a number of benefits including improved accessibility and automation. As we progress, we may seek support for testing purposes.

Looking forward, we are thrilled to announce the introduction of free 100 Mbps ports at Raxio and Communications House. This was made possible by the growing utilization of 1 Gbps, 10 Gbps, and 100 Gbps ports. In line with this, any networks that use 100 Mbps ports will no longer be charged while any networks that use free 10 Mbps ports will be upgraded automatically.

I encourage everyone to read the full report below for more details. As always, we are grateful for everyone's support and look forward to working together for the good of the Internet in 2024.

Kyle Spencer,
Executive Director

Free Ports & Raxio Discounts!

We are excited to announce that we now offer free 100 Mbps ports and note that Raxio customers can still access our service without any cross-connect charges.

We believe this move will facilitate growth and competition in our market without imposing any significant risk to our sustainability thanks to the growing utilization of 1 Gbps, 10 Gbps, and 100 Gbps ports. Any networks that use 100 Mbps ports will no longer be charged while networks that use free 10 Mbps ports will be upgraded to 100 Mbps.

As a reminder, we also offer a 6-month 25% discount on all new services at Raxio. If you would like to connect, upgrade your port, or learn more about our services, please visit our website.

Utilization Report

• We began 2023 with 32 connected networks but only ~10Gbps of peak traffic due to cascading CDN outages involving Google and Akamai (in addition to the ongoing Facebook ban which disabled their legacy cache in 2021).
  
  
• Akamai's cache remains offline due to challenges related to IP transit. If anyone would like to donate IP transit for this cache, please contact us.
   
• We helped Google stabilise their remote peering link to Mombasa following months of severe disruption. The successful restoration of their link provided significant benefits to our members and lowered the cost of delivering Google traffic within our catchment area. However, we understand that Google may withdraw remote peering links in the future due to a global policy change so we encourage everyone to prepare for this possibility.
  
  
• Meta deployed a new cache at the UIXP within the Raxio data center. This was a fast and straightforward deployment thanks to Meta's full support for the project. This lowered the cost and improved the performance of traffic related to Meta's various services. Due to demand growth, we are already working with Meta to upgrade their capacity.
  
  
  
• We are in the final stages of deploying a Netflix cache in partnership with Lyca Mobile and hope to bring it online within the coming weeks. This project is somewhat experimental for Netflix since they typically deploy caches within ISPs and MNOs. Netflix's prefixes will be announced to the route servers by the UIXP's ASN [328998] when it goes live due to the nature of their cache's architecture. If you wish to establish a bilateral peering connection with our ASN, please contact us.
   
• IPv6: 33% of all networks (10 out of 30) are peering with our route servers via IPv6. This reflects growing support in our market though most traffic is still exchanged via IPv4. We encourage all networks to transition to IPv6 and we are happy to provide support where possible. Click here for a live list of networks peering via IPv6 in Uganda.

Infrastructure Updates

• We upgraded our server virtualization platform, implemented cross-site functionality, and upgraded our data storage systems with N+1 redundancy throughout. We also took steps to improve physical and digital security, though this is a continuous process and additional measures will be implemented in 2024.
  
  
• We continue to maintain our facility at Communications House. Power, air-conditioning, and security systems are all operating well. Annual uptime exceeds 99.99%.
   
• As a reminder, we send technical alerts about notable changes and foreseeable outages to the members-only techies@uixp.co.ug mailing list. If your network is peering but is not a member and would like to be, please contact us at support@uixp.co.ug.

Invoicing, Collections, and Taxes

• We started the year with no surplus and depressed income due to three long-term CDN outages. Despite this, we ended the year with a small surplus and our cash reserves remain untouched.
  
  
• In 2023 we observed a small but growing number of account delinquencies. We believe these delinquencies reflect increasingly difficult macroeconomic market conditions and we are working with various stakeholders to encourage government interventions that would relieve pressure on our industry. We are also doing our best to accommodate affected networks while balancing our need to maintain fairness and sustainability.
  
  
• We are attempting to migrate to a new open-source accounting system and, as part of this, automate certain processes. We may contact some of you in the near future to request support for testing purposes.
  
  
• We remain in good standing with URA despite the typical challenges of compliance.
  

Environmental Issues

• The 2021 Facebook ban continues to suppress overall utilization of the Internet and our interconnection service. It continuously inflates the cost of Internet service delivery by forcing users and networks to import Facebook traffic from international sources rather than our local cache. This makes Uganda’s Internet more expensive and its market less attractive for regional interconnection & colocation relative to neighbouring countries.
  
  
• We remain concerned by the increasingly high taxes levied on Internet services which now account for over 50% of the total cost of access. Like the Facebook ban, this makes the Internet more expensive and hinders demand for Uganda’s digital economy.

Community Engagement

• All UIXP staff continue to play voluntary leadership and support roles within the African IXP Association (AFIX), the Africa Peering and Interconnection Forum (AfPIF), and the African Network Operators Group (AfNOG).
  
  
• The UIXP remains a member of the ICT Association of Uganda (ICTAU) and Internet Service Provider Association of Uganda (ISPAU). We work with both organizations to promote community development and good policy outcomes.
  
  
• The UIXP continues to facilitate donations for the Uganda Network Operators Group (UGNOG) until such time that they can formalize and register a bank account. Any organizations that wish to sponsor UGNOG should notify us by sending an e-mail to accounts@uixp.co.ug CC isabel.odida@gmail.com.

 

Disaster Recovery: CDN Outages, Financial Challenges, and the Way Forward

Message from the Executive Director

2022 was difficult for the UIXP.

The year started off strong. In January we had 27 networks exchanging 35 Gbps of peak daily traffic. In February we connected our management network to our route servers in order to deliver new low-latency services. In March we deployed a dark fibre link between Raxio and Communications House to facilitate multi-site peering. In May we helped Google extend their global network to Uganda to facilitate the distribution of their traffic via the UIXP.

By June our peak daily traffic reached a record high of 50 Gbps and we planned to start offering free 100M ports – but then a series of external problems destabilized and eventually disabled both Google and Akamai’s peering amid a lingering national Facebook ban. This multifaceted environmental disaster reduced our peak traffic to 6 Gbps and negatively impacted our income immediately after we incurred new costs related to our multi-site expansion.

We are doing our best to help Google and Akamai resolve their issues while we work with Netflix and Meta to deploy new caching systems. We have also assumed a more conservative budgetary posture in an effort to maintain financial stability during this difficult period. We faced an unusually high number of delinquencies at the end of the year and we will be working to address this in the coming months.

In the background, we continue to contribute to community initiatives at the local, regional, and global level. This includes the Uganda Network Operators Group, ISP Association of Uganda, ICT Association of Uganda, the African Network Operators Group, the African Peering & Interconnection Forum, the African IXP Association, and Internet Exchange Federation.

I encourage everyone to read the full report for more details. As always, we are grateful for everyone's support and look forward to working together for the good of the Internet in 2023.

Kyle Spencer,
Executive Director

Raxio Promotional Discounts

As a reminder, significant discounts are available to all Raxio customers including a free cross-connect to the UIXP and a 6-month 25% discount on all exchange services. If you would like to connect, upgrade your port, or learn more about our services, please contact us.

New Members & Connections

Google (AS 15169), Raxio (AS 328821), Group Vivendi Africa (AS 36924), and the Uganda Internet Exchange Point management network (AS 328998) joined the exchange in 2022. This diverse array of content, enterprise, and access networks are all connected to our new node in the Raxio data center, bringing the total number of peers at that location to five.

Looking ahead, we intend to engage a broader range of Raxio customers in order to expand our membership. The more networks that connect, the more valuable the exchange is to everyone.

Technical Updates

We upgraded our inter-site link to 100 Gbps with geographic redundancy in March 2022 in order to accommodate the anticipated flow of Google traffic between Raxio and Communications House where the majority of our customers are connected. C-Squared is providing this link and we are grateful for their reliable and attentive service.

We experienced multiple broadcast storms in 2022 that significantly disrupted some of our member networks. In response, we are gradually implementing technical changes to reduce the possibility of future disruptions. Most notably, we now restrict all ports to a single MAC address.

As a reminder, we send technical alerts about notable changes and foreseeable outages to the members-only techies@uixp.co.ug mailing list. If your network is peering but is not a member and would like to be, please contact us.

Content Networks: Outages & Upcoming Deployments

Four content networks are connected to the UIXP but only YoTV is actively peering. Facebook, Google, and Akamai have all been disabled by different circumstances detailed below:

• The Facebook cache (AS 63293) stopped serving traffic in January 2021 after a government ban forced network operators to block access to the service. This reduced local bandwidth production by 30% and damaged Uganda’s reputation in the global telecommunications industry. Meanwhile, many users continue to access Facebook via virtual private networks (VPNs) which force network operators to import traffic from more expensive international sources. In other words, the Facebook ban increased the cost of service delivery, reduced overall performance, and steered investment to neighbouring countries which are perceived to have more attractive and stable policy environments.
  
  
• Google (AS 15169) established a remote peering session in May 2022 after decommissioning their prototype “self serve” cache (AS 36040). However, Google’s regional transport suppliers were unable to deliver a stable link to Mombasa despite six months of joint troubleshooting. The session was ultimately disabled in December 2022 due to extreme instability and poor quality of service. Google is now working to change transport suppliers and we are actively supporting them with this process.
  
  
• Akamai’s cache (AS 20940) stopped serving traffic when Google’s instability began because it forced the cache-fill donor, NITA-U, to re-route Google related user traffic via international links. This overloaded their capacity and the resulting congestion forced the Akamai cache offline. NITA-U is working to upgrade their international capacity but the procurement timeline is uncertain so we are searching for a new donor and may need to implement a paid access model until Akamai can justify paying for the cache-fill themselves.
  
  

On a more positive note, Netflix and Meta are shipping us new edge caches which we hope to receive next month. Our goal is to bring them online in the second quarter of this year:

• Meta plans to procure their own cache-fill and will peer with our route servers. Their new system will reportedly make it easier for networks to distinguish between traffic related to Facebook and other Meta properties such as Instagram, Oculus, and WhatsApp.
  
  
• Netflix requires a cache-fill donor but their requirements are relatively easy to fulfill due to the static nature of their content catalogue. If your network has 500 Mbps of idle capacity at night and would like to donate it to the UIXP community for this purpose, please contact us to discuss the requirements in more detail.
  
  
  

Environmental Challenges

The 2021 Facebook ban continues to suppress overall utilization of the Internet and demand for our regional interconnection service. It also increases the cost of Internet service delivery by forcing network operators to import Facebook traffic via international VPNs rather than sourcing it locally from our cache. In general, it makes the Internet more expensive and constricts Uganda’s commercial gravity relative to neighbouring telecommunications markets.

We are also concerned by the high taxes levied on Internet services which now account for over 50% of the total cost of access. Like the Facebook ban, this also makes the Internet more expensive, suppresses overall utilization, and reduces demand for our service.

Financial Challenges

We unfortunately ended the year without any surplus or savings due to an unusually high number of delinquencies. The problem is limited to a minority of networks but the loss of income is significant due to the thin margins of our “cost-recovery plus” sustainability model.

While we are sympathetic to the difficulties that network operators face in our market, it is in everyone’s best interest for everyone to keep their accounts up to date. Income instability impacts our ability to pay suppliers, maintain our infrastructure, and plan for the future.

That aside, our cash reserves remain intact and we remain in good standing with URA despite occasional conflicts caused by erroneous assessments, improper penalties, and onerous bureaucracy.

Community Engagement

UGNOG: The UIXP continues to facilitate donations for the Uganda Network Operators Group (UGNOG) until they can formalize and register a bank account. Any organizations that wish to sponsor UGNOG should notify us by sending an e-mail to accounts@uixp.co.ug CC isabel.odida@gmail.com.

ISPAU & ICTAU: The UIXP is a member of the ISP Association of Uganda (ISPAU) and ICT Association of Uganda (ICTAU) and works through both organizations to promote community development and good policy outcomes for our industry.

AFIX, AfPIF, & AFNOG: Our team remains deeply involved in various voluntary leadership and support roles in the African IXP Association (AFIX), the African Peering and Interconnection Forum (AfPIF), and the African Network Operators Group (AfNOG).

UIXP Expands Into Raxio, Google Joins the UIXP, Switch Platform Upgrade, and more!

Message from the Executive Director

2021 was a good year for the UIXP. New networks connected, traffic levels doubled, and we expanded into Raxio; Uganda’s first Tier-III carrier neutral data center. We added a new member to our team, received new equipment donations, and increased our community development work. Our infrastructure and financial position also remained stable thanks to the support of our growing community of peers.

However, this success wasn’t easy. Our industry collectively endured a lingering pandemic, an Internet shutdown, a Facebook ban, and the imposition of a new 12% excise tax which all continue to hinder growth. We estimate that the Facebook ban alone has depressed Uganda’s local Internet bandwidth production by 30% to date and project that this figure will grow over time until the ban is lifted.

Despite these challenges we are optimistic about the future. We anticipate significant growth in 2022 and believe Uganda now has the potential to evolve into a regional content and interconnection hub. This would generate significant benefits for our industry, our country, and our region, so we plan to work aggressively with our members, partners, and stakeholders to promote this outcome. 

I encourage you to read the full report below for more details and to let us know if you have any comments or questions. As always, we are grateful for everyone's support and we look forward to working together for the good of the Internet in 2022.

Kyle Spencer,
Executive Director

UIXP Expands into the Raxio Data Center in Namanve

The UIXP recently expanded its peering infrastructure into Raxio, Uganda’s first Tier-III carrier neutral data center, and signed Google (AS15169) as the first peer in this new location. When the inter-site link goes live, all networks will be able to peer with each other from either of our two points of presence.

This collaboration between the UIXP, Raxio, and Google marks a significant milestone in the development of Uganda’s Internet ecosystem. It significantly increases domestic bandwidth production capacity; makes large-scale enterprise, content, and cloud infrastructure deployments viable; and promotes regional network interconnection.

Google will peer multilaterally via the UIXP route servers. If your network is also peering via the route servers, it will start to exchange traffic with Google automatically once their service goes live. The amount of traffic could be substantial so you will need to ensure that your network has sufficient backbone and port capacity in order to avoid congestion. If necessary, operators can filter out AS15169 prefixes to divert this traffic until they are prepared to route it via the UIXP.

In order to promote new connections in Raxio, we are offering multiple discounts including a free cross-connect for all Raxio customers plus a 6-month 25% discount on all UIXP services at that location. If you would like to connect, upgrade your port, or learn more about our services, please contact us.

The Internet Society Donates New Switches & Servers

We recently upgraded our core switching infrastructure to an Arista platform that was generously donated by The Internet Society. These new switches support 100G interfaces, advanced automation, and deep buffers; all features that will become critical as we scale up our operations and face new challenges related to operating a multi-site IXP.

The Internet Society also donated two new Dell servers which have been deployed in Raxio as a virtualization cluster. Aside from hosting our operational software systems, these servers will enable us to offer new locally hosted services including software mirrors.

We are extremely grateful to The Internet Society for these donations and their long-standing support for IXP development in our region. We would not be where we are today without them.

Patience Nagaba Joins the Engineering Team

Patience Nagaba has volunteered to join our team as an Exchange Engineer. Patience is a Senior Network Engineer at the Research and Education Network for Uganda (RENU) and has volunteered at AfNOG. She also holds an MSc. Communication Engineering and Signal Processing from the University of Manchester and a BSc. Telecommunications Engineering from Makerere University.

As an Exchange Engineer, Patience helps manage our infrastructure and customer support requests. She has already made a number of significant contributions and we are grateful to have her on the team.

Community Development Updates

PeerFest: In October 2021 the UIXP and Raxio hosted the first annual PeerFest in order to promote awareness and collaboration among industry stakeholders. This Oktoberfest themed event included live entertainment; a delicious barbeque buffet; and speeches by James Byaruhanga (Raxio), Mike Barnard (UIXP), Kyle Spencer (UIXP), and Irene Kaggwa (UCC). For more details, check out PC Tech's coverage of the event.

UGNOG: The UIXP has agreed to facilitate donations for the Uganda Network Operators Group (UGNOG) until they can formalize and register a bank account. Any organizations that wish to sponsor UGNOG should notify us about incoming transfers by sending an e-mail to accounts@uixp.co.ug CC isabel.odida@gmail.com with the relevant details.

ISPAU & ICTAU: The UIXP is a member of both organizations and works through them to promote community development and good policy outcomes for our industry.

AFIX, AfPIF, & AFNOG: Our team is voluntarily involved in various leadership and support roles in the African IXP Association (AFIX), the Africa Peering and Interconnection Forum (AfPIF), and the African Network Operators Group (AfNOG).

Infrastructure & Stability Report

The UIXP remained stable in 2021 though we experienced a few flaps which were generally the result of human action. Our Communications House power backup system remains reliable and our air conditioning system has kept the room cool despite occasional maintenance needs.

Our IP transit had some stability issues in 2021 and we are upgrading to a multi-homed configuration in order to address that. This project required the deployment of new routers because our old routers did not support 32bit ASNs and upgrading the OS was problematic.

In the near future there may be some brief service outages related to our multi-site expansion though we hope to keep this to a minimum. Our inter-site fibre link may also experience brief outages until we can afford to upgrade to a protected circuit.

As always, we will do our best to provide advance notice for any foreseeable outages via the members-only techies@uixp.co.ug mailing list. If you are not a member of this mailing list and would like to be, please contact us.

Financial Sustainability

The UIXP’s cash reserves remain intact and we ended the year with a small budget surplus thanks to reliable payments from our growing community of peers. We note that UTL, URA, and Smile are now the only non-free-tier networks that still do not contribute port fees.

Looking forward, we anticipate income growth from new ports and capacity upgrades related to our multi-site expansion. While this growth will be at least partially offset by new expenses for the same, we are optimistic that we will end the year with another surplus.

We remain in good standing with URA despite the burdens of EFRIS and a frequent need for reconciliation due to our cash based reporting method.

Government Relations

We enjoy an amicable relationship with the Uganda Communications Commission (UCC) under Irene Kaggwa’s leadership. We increasingly engage via events and regulatory development processes. Going forward we aim to enhance our collaboration in order to promote Uganda’s evolution into a competitive regional content and interconnection hub.

New Local CDN, 13 Gbps of Traffic, 100.000% Annual Uptime, EFRIS Concerns, and Other Updates

New Peer: Al Bayan Media
The UIXP would like to welcome Al Bayan Media to the exchange! Al Bayan is a locally owned IPTV provider. They are peering publicly via our route servers in order to deliver a high quality service to their customers across all networks in Uganda. If your network is also peering with our route servers, it should already be exchanging traffic with Al Bayan.

If you would like to establish a bilateral session or market Al Bayan’s IPTV service to your customers in order to promote utilization of local traffic, please let us know and we will arrange an introduction.


Peak Traffic Level: 13 Gbps

The UIXP’s traffic has returned to growth following a brief reduction caused by the strict COVID-19 lockdown measures imposed earlier this year. Our daily peak traffic level now exceeds 13 Gbps during some weekdays as can be seen in the graph above.


Annual Uptime: 100.000%
The UIXP recently achieved an annual up-time of 100.000%. This is an improvement over our previous record of 99.994% which was achieved in March. Reliability is a critical growth enabler for the UIXP so we aim to maintain a similarly high level of availability going forward.

This milestone is the result of equipment upgrades that were made possible by our port-fee based sustainability model and we are grateful to everyone who supported its implementation.


IPv6 Peering Reminder
We would like to remind everyone that the UIXP supports IPv6 peering. At the moment, only four out of the twenty six networks that peer with our route servers use IPv6 and we would like to increase this number. We will reach out to some of you directly in the coming months in order to encourage adoption, but if you would like to proactively enable this for your network, please let us know and we will gladly assist.


Conrad Ekisa Moves to Ireland

Conrad Ekisa, one of our esteemed engineers, has left Uganda for some post-graduate research in Ireland. He’s still part of our team but will transition to a more limited remote support role in order to focus on his studies.

Contrad has made very significant contributions to the UIXP that greatly improved our quality of service, customer experience, and internal organisation. We are sad to see him go but we know that he’s destined for great things and wish him well on the journey ahead.

Internal System Upgrades
We recently upgraded our hypervisor cluster to the latest version of its software in order to take advantage of new features, stability improvements, and security updates. We have also made a few other changes to our network and systems that should significantly improve the overall security of our infrastructure.

Looking forward, we are exploring a potential deployment of an open-source ERP system in order to automate more of our invoicing and accounting processes. We also aim to upgrade our core exchange management system in order to take advantage of new features that are available in the latest release. We’ll share more information about this as we progress.


Raxio Expansion: Latest News
Earlier this year we signed a deal to extend our peering network into Raxio’s carrier neutral data centre in Namanve. This will allow us to attract new peers, provide redundancy for the networks that rely on us, and facilitate large-scale content and cloud deployments in Uganda.

As a reminder, we plan to deploy a fully independent IXP node at Raxio and interconnect it with our existing node at Communications House. This will allow us to offer a unified peering LAN that spans both locations. Network operators will be free to peer at either, or both, as needed.

After consulting with other IXPs, we have decided to prioritise Arista’s switching platform for the new site due to its deep buffers and support for advanced automation through an integration with our existing exchange management system. ISOC has generously agreed to sponsor this procurement and we are working to negotiate an order through Arista’s authorized local supplier.

We have also reached a tentative agreement for a dark fibre link between the two sites. This will require us to pay a monthly fee, but we have negotiated a discounted rate and are confident that we can afford the cost so long as collections remain consistent. We plan to finalize and execute the contract for this once we get closer to deployment.


URA: Concerns About EFRIS
We continue to remain in good standing with URA despite the issues reported in our previous newsletter. Following a brief dialogue with their officers, they informally stopped imposing penalties on us for using a cash based reporting method. We do not know how long this reprieve will last, but we’re grateful for URA’s apparent accommodation.

However, we have serious concerns related to the upcoming implementation of EFRIS, a centralized online accounting system which all companies operating in Uganda will be required to use for invoicing and payments. In order to use the system, every company in Uganda will be required to import and maintain its list of materials, products, and services along with all associated pricing information. To learn more about EFRIS, see here: http://efris.ura.go.ug/

In order to comply, the UIXP will either be forced to (a) duplicate all invoicing and accounting work or (b) migrate to an alternative accounting system which can integrate with EFRIS via an API which would undoubtedly come at a cost.

We are also concerned that EFRIS will create a single point of failure for the national economy, dramatically increase the burden of tax compliance, and potentially expose sensitive information to the database operators and others who might inappropriately gain access to the system.

The deadline for implementation was July 1, 2020 but has been extended to January 1st, 2021 following complaints from the Uganda Manufacturers Association (UMA) and others.


Payments & Collections
Collections have generally been good although we did experience some delays during Q2 and Q3 as COVID significantly disrupted the income and working conditions for a number of network operators in our market. Once again, we thank everyone for the continued support!


Community Engagement
We remain committed to community development despite the limitations imposed by COVID. Members of our team have both organised and spoken at a number of virtual events this year including AfPIF’s Virtual Peering Series. We will also be speaking at the upcoming Uganda Network Operators Group (UGNOG) launch event. In addition, we recently made a donation to the ISP Association of Uganda (ISPAU) in order to support their industry development efforts.

That’s all for now. If you have any questions, please contact us.