MTN sues Uganda Telecom over UGS7.2 billion debt

25 Feb 2010

MTN Uganda is suing Uganda Telecommunications Ltd (UTL), seeking UGS7.2 billion (USD3.55 million) for unpaid interconnection fees. In a case filed at the Kampala High Court’s Commercial Division, MTN accused UTL of breach of contract. It claims that in February 2001 its management entered into an agreement with UTL to interconnect their respective networks, as required by their respective telecoms licences awarded by the Uganda Communications Commission. According to MTN, in accordance with the interconnection charges that were detailed in the agreement its management issued invoices to UTL, but that the state-owned telco failed to pay them. MTN has asked for a court order compelling UTL to pay the owes plus interest, damages and costs.