MTN Uganda responds to court ruling on transitional license fees

On April 24, 2021, MTN Uganda received a ruling from the Civil Division of the High Court of Uganda, (Miscellaneous Cause Number 240 of 2020), in relation to a transitional license fee of US$ 14,140,030 (United States Dollars Fourteen Million, One Hundred Forty Thousand, thirty only) assessed by Uganda Communications Commission (UCC) for the period October 2018 to June 2020.

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MTN Uganda hopes for a review on the matter

While MTN Uganda respects the decision of the High Court; it appreciates that the Laws of Uganda provide an opportunity to have this matter reviewed by the Court of Appeal. MTN is confident that the Court of Appeal will at an appropriate time, consider all matters raised by MTN comprehensively and pronounce itself in accordance with the law and evidence on record.

MTN Uganda is a responsible corporate citizen committed to meeting all its lawful obligations and remains committed to playing its part in the development of the telecommunication industry and Uganda as a whole.

Read also: MTN Uganda’s revenue in 2020 grew by 9.5%

A brief background

According to The Observer, in October 2017, MTN applied to UCC for a renewal of its second national operator license which was due for expiry in October 2018. UCC determined the renewal fees for the applicant license would be $51 million for the telecom company to continue operating under the second national operator license terms and conditions.

However, in November 2017, UCC deferred the issuance of the renewed license to allow for the alignment with internal government processes. It extended MTN’s operations of the license for a maximum period of 60 days from November 21, 2018.

The period was further extended on March 21, 2019, to ensure continuity while negotiations over the new license progressed.

Further extensions were made until 30th June 2020. Court records indicate that on 18th March 2020, UCC communicated its decision to renew the license for a term of 12 years from July 1, 2020.

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