Uganda Telecom facing crisis

June 20, 2011 • Mobile and Telecoms

Uganda Telecom might be in some trouble

Uganda Telecom (Utl) remains in a conundrum, with local news reports indicating that its financial sustainability remains uncertain after it has failed to pay dues in the billions to partners and service providers.

New Vision reported that the Uganda Communications Commission (UCC) is demanding some sh6 billion over non-remitted contributions to the rural communication development funds.

Analysts in Kampala are worried that if the situation is not resolved in the near future, hundreds could lose their jobs as Utl faces the possibility of going under.

“We must start to look at the situation from a realistic perspective,” said John Yukingo, a Kampala-based ministry of communications official.

“The facts on the ground are that Utl is not able to pay the dues that it is required to pay and this puts it in a precarious position that could mean the liquidation of its stakes and the company could be forced to close up shop if efforts are not done to rectify this immediately.”

All this comes on the heels of a dispute with MTN Uganda over interconnection fees that Utl allegedly has not paid and a court ordered the company to pay within 30 days earlier this month. The unpaid bills total some sh9 billion.

By Andrew Matapare

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