Airtel moves to bar UTL calls over debt

The Airtel office block in Kampala. File photo

Kampala – Airtel and Uganda Telecom (UTL) customers will not be able to make calls to each other starting Friday this week if an interconnection agreement row between the two companies is not resolved.

In a Monday notice to Airtel customers, the telecom company revealed that the “interconnection agreement and interconnection services between Airtel Uganda and UTL were terminated.”

Unless the two agree before Friday, it could spell further doom on UTL that is struggling to remain afloat because of massive debt and limited investment.

“Airtel Uganda regrets to inform its customers that effective Friday 3rd February 2017, our subscribers will not be able to make calls to or receive calls from Uganda Telecom Limited,” the notice reads.

An interconnection agreement is where two telecom companies agree on a fee to charge per call. Depending on the number of calls, the telecoms remit to each other amounts based on the calls made or the agreement.

In this case, UTL is at fault for not remitting money to Airtel. The termination results from a dispute that can be traced as far back as 2012.

 In 2011, Airtel suspended calls to UTL over unpaid Shs10 billion in interconnection fees. UTL later paid the debt.

The two telecoms then made another Interconnection Agreement in 2012 but by end of 2014, UTL had violated it.

 In 2016, Airtel petitioned UTL in the commercial court to demand payment of the debt. The payment remains unpaid and that in part explains Airtel’s latest move to terminate the agreement.

UTL says it will issue a statement later, in response to the notice by Airtel.

UTL has been making the headlines especially after questions around it survival are being asked in a select committee in Parliament.

The queries range from poor management, massive debt accumulation, none-payment of obligations to other telecom companies and Uganda Communications Commission. UTL is owned 69 per cent by the Libyan Government with the Uganda Government holding a 31 per cent stake