UTL embarks on turnaround plan

It seeks to help the telecom company affirm its position as the largest fixed line network.

Kampala

After years of struggling to grow its market share Uganda Telecom Limited is in a new drive to embark transform business operations. The company’s Business Transformation and Turnaround Strategy seeks to help the telecom company affirm its position as the largest fixed line network.

The strategy
“The turnaround strategy has involved benchmarking the company against international standards of ethics, corporate governance and accounting, and enhancing operational efficiency,” said Mr David Holliday, the managing director, in a statement.

Mr Holliday was appointed by the LAP GreenN [the majority shareholder] at the end of last year to implement LAP GreenN’s turnaround of UTL. He said the company has embarked upon a number of changes in regard to its operations. He added that, they are investing in new equipment and automations which, combined with new processes, will create improved efficiency in the network countrywide.

Part of the turnaround strategy focuses on the fixed-line side of the business, which includes an upgrade of UTL’s ISP and ADSL services, to deliver much faster internet speeds.

Recently, the company laid off about 100 local employees, which Mr Holliday maintained was part of the transformation. “The transformation has meant changes in UTL which on the one hand has led to a reduction of job functions and positions, which was unveiled to those staff who it has affected. This has resulted in a reduction in the staff numbers required.”

Acquisition looms
Meanwhile, there are reports that the 13 year old telecom operator is indebted to suppliers and banks to the tune of $70 million (about Shs182 billion), with some media reports suggesting UTL could be acquired by MTN. Attempts to get a comment from Mr Holliday on the matter proved futile.

musisif@ug.nationmedia.com