UCC, MTN face off over price changes

A subscriber loads data bundles for a day. UCC wants MTN to explain itself on the changes in voice and data prices. PHOTO BY ABUBAKER LUBOWA

What you need to know:

  • Law. All tariffs are supposed to be filed with the regulator for approval.

Kampala.

MTN Uganda chief legal counsel Anthony Katamba has said, as a company, they will not respond to a letter by Uganda Communications Commission (UCC) that demands the telecom firm explains why it adjusted data and voice prices.

Speaking to Daily Monitor yesterday, Mr Katamba who is also the general manager for corporate services, said although they got the industry regulator’s letter after close of business hours on Tuesday, the correspondence does not deserve a reply because that is not what the law stipulates.

“We have not increased the prices at all. We have only made an offer. And that should not be confused with tariffs,” he said; continuing that: “I have not heard of anybody before asking for a permission to offer bundles. And tariffs have not changed. Actually we have reduced all our data bundle prices while others have not. So I don’t understand the outrage.”

The change
According to Mr Katamba, there should not be any public outrage and for that matter the need by UCC to put them on the spot over the offer they have been trying to put up for grabs.

He said unlike before, where one would buy separate bundles for either Facebook or Twitter or even WhatsApp, now all that will be offered together, something he suspects must have sparked the public outcry, leading to the UCC letter.

Apology
Mr Katamba said the trial for the offer started before its due date.

“Due to technical glitches, this offer activated itself nearly a week before it was supposed to be introduced. And this is part of the entire problem, although we have no control over this, we would like to apologise.”

UCC executive director Godfrey Mutabazi is, however, in a combative mood. When contacted yesterday, he said that the regulator has a mandate to protect the rights of the consumers.

“I expect them (MTN) to respond to the letter we have written to them by close of business (yesterday),” Mr Mutabazi said.

He added: “We are the regulator, and they must respond to our letter.”

In the letter dated July 7 addressed to MTN Uganda CEO Wim Vanhelleputte by UCC executive director Godfrey Mutabazi, also referred to telecommunication regulation No. 27 of 2005 which requires that all tariffs are filed with the commission for approvals and non-compliance with this provision could pave way for suspension or termination of a licence.

Subscriber voice
Disgrantled subscribers took to social media to complain.

One posted: “UCC we need more protection from these telecom thieves, our data bundles no longer make sense to us in that for a day you have to use not less than 4,000/= on data ...which used to be 500/=...”

UCC mandate
Regulating rates. The Uganda Communications Commission is mandated under section 5(1) (e) of the communications Act 2013, to regulate rates and charges for communications services with a view to protecting consumers from excessive tariffs and to prevent unfair competitive practices.