today's Pick
Warid sues Utl over sh1.9b interconnection fees
Publish Date: Jun 20, 2014
newvision
  • mail
  • img

By Chris Kiwawulo & Michael Odeng              
 
Warid telecom has dragged Uganda telecom (utl) to court over failure to pay sh1.9b in local and international interconnection fees.

In a suit filed in the High Court’s commercial division, Warid wants utl to pay a liquidated sum of sh1.9b being the outstanding amount on account of reconciled E1, local and international interconnection fees, and costs of the suit.

Interconnection rates are fees service providers charge each other for customers to connect to their fixed or mobile phone networks. Telecom companies charge interconnection rates between sh136 to sh138.

“In order to ensure efficiency of operation of interconnection between the respective telecommunications networks, the plaintiff (Warid) and the defendant (utl) entered into a reciprocal agreement for the payment of E1, local and international interconnection charges,” Warid contended.

Warid stated that in accordance with the respective interconnection agreement, the parties were supposed to make payments to each other in respect to E1, local and international interconnection.

Warid added that a demand notice was sent to utl requesting it to pay the reconciled claim figure to no avail, and to date, the company has not paid up. This, Warid argued, has caused has occasioned them immense financial strain.

When contacted, utl managing director Ali Amir confirmed that his company had received the summons to file a defence which he said they had already filed.

When pressed for further comment, Amir only added; “The matter is in court and our legal counsel is handling it. At this moment in time, due to the matter being in court, we cannot comment on specifics. We await the decision of the Court”.             
    
In 2008, MTN sued utl over failure to pay sh3.4b in interconnection fees. In 2011, Airtel and MTN again sued utl over failure to pay sh18b in interconnection fees, which reportedly accumulated over a period of two years.                               

 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Burkina parliament set ablaze in protests over president
Angry demonstrators went on the rampage in Burkina Faso on Thursday, setting parliament ablaze in a surge of violence that forced the government to scrap a vote on controversial plans to allow President Blaise Compaore to extend his 27-year rule....
Graca Machel wants woman to succeed Museveni
Uganda should have a female president when President Yoweri Museveni retires, South African former first lady has said....
Ebola cases slow in Liberia, but too soon to celebrate: WHO
The rate of new Ebola infections appears to be slowing in hard-hit Liberia, but the crisis is far from over, according to the World Health Organization....
Diabetes is the new driver of tuberculosis – report
A person suffering from diabetes is three times more likely to develop tuberculosis, a new research reveals....
Byarugaba bounces back as NSSF boss
Richard Byarugaba has been re-appointed National Social Security Fund (NSSF) Managing Director....
UN chief Ban Ki-moon visits war-ravaged Somalia
UN chief Ban Ki-moon met with Somali President Hassan Sheikh Mohamud under heavy security Wednesday in Mogadishu, his first visit to the dangerous capital of the war-torn nation in almost three years....
Should the absence of bride price prevent couples from wedding?
Yes
No
Can't Say
follow us
subscribe to our news letter