MTN goes to court over network call rates
Dec 17, 2009
MTN Uganda has petitioned the High Court challenging Uganda Communication Commission (UCC) over imposing new interconnection rates on it. Interconnection rates are fees service providers charge each other for customers to connect to their fixed or mobile
By Edward Anyoli
MTN Uganda has petitioned the High Court challenging Uganda Communication Commission (UCC) over imposing new interconnection rates on it. Interconnection rates are fees service providers charge each other for customers to connect to their fixed or mobile phone networks.
According to a letter sent to all telecommunication companies by Patrick Masambu, the executive director of UCC, the new rates between MTN and other telephone operators effective January 1, 2010 would be sh131 for mobiles, sh125 for fixed telephone lines and sh25 for SMS.
Through Kampala Associated Advocates, MTN wants court to restrain the commission from implementing the new rates on ground that other stakeholders were not involved in deciding the rates.
MTN further wants the new rates quashed and other reasonable rates put in place. MTN argues that by law, fixing interconnection rates is a matter of negotiations and agreement between UCC and the telecommunications service providers.
In his affidavit, Tom Mbalinda, MTN’s senior manager for commercial legal and litigation, said the true cost of interconnection rates from sh136 to sh138 contrary to the new rate put by UCC which he said is far below.
He said the decision by UCC is unreasonable because it is not based on actual costs involved in the interconnection between itself and the service providers.
The imposition of the new rates would lead to significant loss of revenue to the telephone operator and adversely affect the continued investment in the telecoms market, he added.
MTN Uganda has petitioned the High Court challenging Uganda Communication Commission (UCC) over imposing new interconnection rates on it. Interconnection rates are fees service providers charge each other for customers to connect to their fixed or mobile phone networks.
According to a letter sent to all telecommunication companies by Patrick Masambu, the executive director of UCC, the new rates between MTN and other telephone operators effective January 1, 2010 would be sh131 for mobiles, sh125 for fixed telephone lines and sh25 for SMS.
Through Kampala Associated Advocates, MTN wants court to restrain the commission from implementing the new rates on ground that other stakeholders were not involved in deciding the rates.
MTN further wants the new rates quashed and other reasonable rates put in place. MTN argues that by law, fixing interconnection rates is a matter of negotiations and agreement between UCC and the telecommunications service providers.
In his affidavit, Tom Mbalinda, MTN’s senior manager for commercial legal and litigation, said the true cost of interconnection rates from sh136 to sh138 contrary to the new rate put by UCC which he said is far below.
He said the decision by UCC is unreasonable because it is not based on actual costs involved in the interconnection between itself and the service providers.
The imposition of the new rates would lead to significant loss of revenue to the telephone operator and adversely affect the continued investment in the telecoms market, he added.