MTN to snap ties with UTL on interconnection

UTL's $8.28 mn debt has been accumulated over a period of three years

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MTN to snap ties with UTL on interconnection MTN and UTL interconnection to terminate on 14th March 2011, says an MTN statement.
By  Nithyasree Trivikram Published  March 10, 2011

Uganda's telecom operator, MTN Uganda has warned Uganda Telecom Limited (UTL) that the interconnection between the two telcos will be suspended due to non-payment of bills.

The disconnection is to come to effect from 14th March 2011, said an MTN release. It is stated that UTL has been continuously defaulting on the settlement of its interconnect payments, amounting to about $8.28 million (UGX 20 billion) accumulated over a period of three years.

Themba Khumalo, CEO of MTN Uganda said: "UTL has continuously defaulted on the settlement of these payments. The interconnection fee is pre-paid by customers, especially since the number of pre-paid customers by far form the majority of subscribers. UTL has failed to justify over the years why they are not remitting these payments."

The move will lead to UTL's 1.75 million subscribers being unable to make calls to MTN customers and vice versa.

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