MTN Uganda and UTL Interconnectivity fee wars

Thursday, 10 March 2011

Giant telecom company MTN Uganda maintains that it is going ahead with the termination notice of its interconnectivity agreement with Uganda telecom until UTL pays the 20 billion shillings it owes it.

However, Uganda telecoms refutes the amount in question saying it only owes MTN 6 billion shillings

And as the saying goes when two giants fight it is the grass that suffers in this matter if you are a subscriber to the two companies come 14th of this month you will not be able to make calls to either network.

The telecom industry is experiencing a stand off and this time round it is between telecom giants MTN Uganda and UTL as both companies have a row over interconnectivity fees.

According to MTN, Uganda Telecom owes it 20 billion shillings that has accumulated since 2007. However UTL refutes this amount maintaining that it only owes MTN 6 billion shillings.

MTN says it will go ahead and terminate the interconnectivity to UTL to fast track a resolution from UTL and its shareholders.

But as the row between these companies continues it is the subscribers that will have to suffer as MTN customers will therefore be unable to place direct calls to UTL subscribers and vice-versa.

MTN Uganda Sues UTL Over Interconnection Fees

Thursday, 25 February 2011

MTN Uganda is suing Uganda Telecommunications Ltd (UTL), seeking UGS7.2 billion (USD3.55 million) for unpaid interconnection fees.
In a case filed at the Kampala High Court's Commercial Division, MTN accused UTL of breach of contract.

It claims that in February 2001 its management entered into an agreement with UTL to interconnect their respective networks,
as required by their respective telecoms licences awarded by the Uganda Communications Commission.

According to MTN, in accordance with the interconnection charges that were detailed in the agreement its management issued invoices to UTL,
but that the state-owned telco failed to pay them.

MTN has asked for a court order compelling UTL to pay the owes plus interest, damages and costs.

Uganda Government Intervenes in MTN-UTL Cash Wrangle

Tuesday 15 March 2011


The government yesterday moved to stop MTN from shutting out Utl from routing its calls through its network. Mr Aggrey Awori, the ministry of Information and Communications Technology, told Daily Monitor yesterday that the government had given the two parties a 14-day ultimatum to settle all the discrepancies arising from the dispute.

In a phone interview, Mr Themba Khumalo, the MTN chief executive officer, said the government had asked them to hold talks with Utl and devise ways through which the debt obligation could be settled.

Talks

"We hope Utl meets its end of the bargain so that there are no disruptions in the future," he added.

The move is likely to calm simmering tension arising from a disputed Shs20 billion debt that MTN says Utl owes it.

The money was reportedly accumulated from interconnection charges since 2006.

In a statement yesterday, the government asked the two parties not to take any action that would be prejudicial to the provision of communication services to the general public.


Last week MTN said it would beginning March 14 (yesterday) shut out Utl subscribers from routing its calls through its network.

However, Utl dismissed the Shs20 billion debt claims as an exaggeration with a malicious intent.

Utl said it was only aware of a Shs3.8 billion debt, which had been subjected to the Commercial Court for disposal, adding that it had no plan of remitting any money to MTN before the disposal of the case due for April 28.


The dispute as alleged by Utl is linked to traffic routed through MTN to Southern Sudan, which the firm says was invoiced as local traffic.

Utl said after acquiring permission from the government to host Southern Sudan on Uganda's +256 477 code, it wrote to all telecoms informing them of the development.

It demanded that calls to Southern Sudan be treated as international traffic, which is lowly charged compared to local traffic charged at Shs131.

However, as noted, Utl said MTN had invoiced calls to Southern Sudan as local traffic.

Reacting to the allegation, Mr Khumalo, was yesterday quoted in the press as saying that Utl was only being diversionary adding: "Hiding behind the
disputed amount does not solve the problem."

By Othman Semakula and Isaac Imaka : The Monitor Newspaper