Warid drags Uganda Telecom to court

uganda telecom sued

uganda telecom suedAirtel bought Warid last year and it seems, Warid had a pending litigation case to settle with Uganda Telecom (UTL) that has been resurrected after the acquisition is now complected. According to  the New Vision, Warid telecom has sued UTL over UGX 1.9 billion in interconnection fees for both local and international calls made.  According to the New Vision report, a law suit filed by Warid in the High Court’s commercial division, and they want UTL to pay a sum of sh1.9b in cash being the outstanding amount on account of reconciled, local and international interconnection fees, and also the litigation costs.

This is not the fist time UTL is being dragged to court, in 2008, MTN sued utl over failure to pay sh3.4b in interconnection fees and later in 2011, Airtel and MTN again sued utl over failure to pay sh18b.

“This has caused us immense financial strain”

According to Warid’s argument,

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[signoff predefined=”Movie Review Signoff” icon=”icon-suitcase”]In order to ensure efficiency of operation of interconnection between the respective telecommunications networks, the plaintiff (Warid) and the defendant (utl) entered into a reciprocal agreement for the payment of E1, local and international interconnection charges. In accordance with the respective interconnection agreement, the parties were supposed to make payments to each other in respect to E1, local and international interconnection. A demand notice was sent to UTL requesting it to pay the reconciled claim figure to no avail, and to date, the company has not paid up. This has caused us immense financial strain.[/signoff]

The New Vision further reports that, the UTL managing director Ali Amir has confirmed that his company had received the summons to file a defense which he said they had already filed.

Those calls you make from one network to another, are what they call Interconnection calls and there are fees involved where the mobile operators charge each other for customers to connect to their fixed or mobile phone networks. The range of interconnection fees is between sh136 to sh138.