today's Pick
Warid sues Utl over sh1.9b interconnection feesPublish 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
Anastase Murekezi has replaced Dr. Pierre Damien Habumuremyi as prime minister. This was announced this afternoon in a press statement released by the Office of the President, the New Times of Rwanda has reported....
Kagina URA contract ends October, prefers to quit
Uganda Revenue Authority (URA) Commissioner General, Allen Kagina, prefers to quit when her second 5-year contract expires in October....
Gen. David Sejusa
Gen. David Sejusa’s Freedom and Unity Front (FUF), a coalition formed barely a year ago to cause regime change in Uganda, has fallen apart....
US man creates kingdom in Africa for daughter
When Emily Heaton said she wanted to be a princess, her father Jeremiah quickly found her a kingdom . . . in Africa....
Juliana Kanyomozi son’s body flown back
The casket bearing the body of local musician Juliana Kanyomozi’s son was flown back home on Tuesday evening....
MPs query procurement of 111 vehicles for district chairmen
Withthe bicycle saga still fresh in their minds, Members of Parliament have raised a red flag on the proposed purchase of 111 vehicles for district chairmen and six vehicles for the Ministry of Local Government....
Should government review powers of kings?
Yes
No
Can't Say
follow us
subscribe to our news letter