MTN cuts off iBurst for non-payment of bills

19 Jun 2014

MTN South Africa, the country’s second largest cellco in terms of subscribers, has terminated an SMS interconnection agreement with Wireless Business Solutions (WBS), the parent company of domestic broadband provider iBurst, for non-payment of bills, MyBroadband reports. The move follows a similar decision by market leader Vodacom, which cut off its own SMS interconnection with iBurst in May 2014. MTN disclosed that although there was no binding contract between the two parties, it continued to transmit and terminate iBurst’s SMS messages over its network. However, iBurst reportedly refused to pay the outstanding levies, and the move resulted in MTN’s decision to terminate SMS interconnection. Fusi Mokoena, general manager of MTN’s Commercial Legal department, said: ‘MTN has no legal obligation to render such services and in particular, where such services are not being paid for.’ WBS/iBurst reportedly refused to comment on the matter.

South Africa, MTN South Africa, Rain (Multisource/WBS), Vodacom South Africa