MTN gives notice to UTL for settlement of interconnect fees

MTN Uganda has given the incumbent landline operator, Uganda Telecom (UTL) 21 days to settle an outstanding invoice for Shs22 billion (US$8.8 million) otherwise it will seek to have the company declared bankrupt.

The invoice is for interconnection fees accumulated over three previous court cases.

MTN through its attorneys, Kampala Associated Advocates (KAA), say should UTL fail to pay the demand, the cellco will seek a court order to wind up the company.

"We have firm instructions to liquidate UTL, which has failed to pay judgment debts due to MTN," Joseph Masiko, a senior partner with KAA said.

UTL has downplayed the demand, saying it is an internal matter they are handling and that the company has paid all current dues and the debts will be paid in due course.