Customers weigh options as Broadband mulls future

In an email circulated to customers, Broadband informed them of the pending liquidation and committed itself to transfer all willing customers to Foris Telecom, another internet service provider based in Wandegeya.

Kampala

Broadband Company customers have reacted with disbelief as news of the firm’s closure started flowing in last week. A source who preferred to remain anonymous at Kenya High Commission because he is not the official spokesperson, told Daily Monitor that although Broadband had promised to refund them it would inconvenience the commission’s operations since it had to shop for a new supplier. According to the source, the Kenya High Commission had in November allegedly paid an upfront for a one-year service package.

Mr Musthaq Sidik, the director Auto Maxx said: “The communication about the liquidation was at short notice. They knew this would happen, why didn’t they tell us then. Even then their services have been on an off.”
Details seen by Daily Monitor indicate Broadband has about 100,000 institutional and individual clients who pay subscription ranging from a month to a year.

In a December 6 communication seen by this newspaper, and which was circulated to all Broadband staff, the company had in a December 5 board meeting been instructed by its parent company - PME African Infrastructure Opportunities, to voluntarily place the firm into liquidation, pending a December 19 shareholder’s meeting in London.

The letter, further notes that the company would no longer connect new customers or accept payments on the existing connections but would continue to provide internet connectivity where possible, through January 6, 2012.

Informing customers
In an email circulated to customers, Broadband informed its clients of the pending liquidation and committed itself to transfer all willing customers to Foris Telecom, another internet service provider based in Wandegeya, Kampala.

Ms Faith Kembabazi, a network manager at Children at Risk Action Network, said when contacted: “It’s unfortunate because we now have to look for another service provider. But we shall go through it.”
Broadband company ventured into Uganda’s data market in 2009, as it sought to tap into the country’s seamless internet connectivity brought by the landing of fibre optic cables including TEAMS, EASSy and SEACOM at the East African coast. However, the firm has struggled through the years reducing staff twice in two years.

In a December 6 meeting chaired by Mr Rodney Raymond Rudman, the firm’s managing director, about 20 staff were asked to immediately leave the company with the rest (about 30) including Mr Rudman and the chief finance officer asked to stay on and oversee the liquidation process.

However, some staff fear that the company is playing tricks in relation to workers’ compensation.
A source who declined to be named, told Daily Monitor that the company had decided to pay three months compensation to a few workers leaving out the rest.

The source said they had sought the services of a lawyer who had advised them to seek for their payment before the appointed date of the firm’s liquidation. However, efforts to seek clarification on the matter seemed futile as Mr Rudman, refused to see this reporter and could not take calls as he was reportedly attending a series of meetings.

fkulabako@ug.nationmedia.com