MTN secures court order against UCC
Dec 20, 2009
THE High Court has issued an injunction stopping Uganda Communication Commission (UCC) from imposing new interconnection rates on MTN.
By Edward Anyoli
THE High Court has issued an injunction stopping Uganda Communication Commission (UCC) from imposing new interconnection rates on MTN.
Justice Vincent Kibuuka Musoke on Friday ordered that no new rates should be imposed on MTN until court
determines whether UCC has authority to impose the rates on it.
The judge said the order would remain in force until court makes a substantive finding on the matter. The new rates between MTN and other telephone operators had been scheduled effective January 1, 2010.
“The applicant (MTN) has shown that there is a substantial ground for investigation to determine the
legality of this matter and once a matter of legality is brought before court, court must clearly address itself on that matter,†the judge ruled.
Interconnection rates are fees service providers charge each other for customers to connect to their
fixed or mobile phone networks.
Through its lawyer Oscar Kambona of Kampala Associated Advocates, MTN is contesting the new rates of sh131 for mobiles, sh125 for fixed telephone and sh15 for short message service (SMS).
MTN is also challenging the authority of the UCC to impose the new rate, saying their decision is illegal.
Kambona submitted that the terms to set the interconnection rates is determine between telephone providers with the approval of UCC.
Kambona opposed the view by Mohamed Mbabazi, the UCC lawyer, to have the matter handled by a tribunal set to determine the disputes.
Kambona argued that if the rate was effected, MTN would adversely suffer since there would be no harmony
in the market.
But Mbabazi said the new charges were meant to ensure that the public, besides other telecommunication
operators, benefits.
Mbabazi added that the rate would also protect the public against price discrimination.
The case was adjourned to Febuary 17.
THE High Court has issued an injunction stopping Uganda Communication Commission (UCC) from imposing new interconnection rates on MTN.
Justice Vincent Kibuuka Musoke on Friday ordered that no new rates should be imposed on MTN until court
determines whether UCC has authority to impose the rates on it.
The judge said the order would remain in force until court makes a substantive finding on the matter. The new rates between MTN and other telephone operators had been scheduled effective January 1, 2010.
“The applicant (MTN) has shown that there is a substantial ground for investigation to determine the
legality of this matter and once a matter of legality is brought before court, court must clearly address itself on that matter,†the judge ruled.
Interconnection rates are fees service providers charge each other for customers to connect to their
fixed or mobile phone networks.
Through its lawyer Oscar Kambona of Kampala Associated Advocates, MTN is contesting the new rates of sh131 for mobiles, sh125 for fixed telephone and sh15 for short message service (SMS).
MTN is also challenging the authority of the UCC to impose the new rate, saying their decision is illegal.
Kambona submitted that the terms to set the interconnection rates is determine between telephone providers with the approval of UCC.
Kambona opposed the view by Mohamed Mbabazi, the UCC lawyer, to have the matter handled by a tribunal set to determine the disputes.
Kambona argued that if the rate was effected, MTN would adversely suffer since there would be no harmony
in the market.
But Mbabazi said the new charges were meant to ensure that the public, besides other telecommunication
operators, benefits.
Mbabazi added that the rate would also protect the public against price discrimination.
The case was adjourned to Febuary 17.