Celtel sues UTL over interconnection bill

27 Jun 2005

Celtel Uganda is seeking a court order to recover UGS2.9 billion (USD1.67 million) in interconnection fees, plus damages and 28% interest it claims is owed to it by Uganda Telecom (UTL). It alleges that the two signed a memorandum of understanding in 2000 to set interconnection fees across their networks but did not include mobile services in the deal, instead arranging that a new interconnection agreement would be drawn up to include the mobile segment. However, it appears that the companies failed to execute a new contract as they could not agree on rates, and the matter was only resolved in December 2003 when the regulator issued its own set of interconnection fees.