MTN threatens UTL with disconnection

9 Mar 2011

MTN Uganda has threatened to terminate its interconnection agreement with Uganda Telecom (UTL) over the latter’s UGS20 billion (USD8.28 million) debt. The money is said to have accumulated over a period of three years. The move will mean that UTL’s 1.75 million customers will not be able to make calls to MTN customers and vice versa. According to MTN the cancellation will take effect on 14 March. Themba Khumalo, CEO at MTN Uganda, said his company had tried all possible means to recover the debt, to no avail. ‘UTL has continuously defaulted on the settlement of these payments. Interconnection fees are pre-paid by customers, but UTL has failed to justify why they are not remitting these payments,’ Khumalo said yesterday.