Uganda Telecom announced over the weekend that it intends to appeal a five billion shilling ruling that forced it to pay MTN Uganda for charges, damages and interest. The decision to appeal means the battle between the two companies is likely to drag on into the near future. MTN Uganda had sued Uganda Telecom over unpaid interconnection fees dating back over two years. A company official told local reporters that the company would file the appeal this week to fight the ruling, which the company said is “unfair considering the interconnection fees in question relate to Gemtel, a Sudanese telecom company, whose traffic they carried via MTN's networks.” “The judgment is unfair and that is the reason it will be appealed. The interconnection fees in question relate to call traffic to Gemtel, which is a foreign operator and as such these calls we think are international,” said Emmy Olaki, the deputy spokesperson of Uganda Telecom. Despite the choice to appeal, analysts believe the company is unlikely to win the battle and is likely taking the time to find the funds to pay MTN Uganda. “What is happening is simply a time wasting tactic because I firmly believe that they will lose this fight and will have to pay MTN anyway,” said Samuel Jones, a London-based East African telecom expert. “The initial ruling is an important step in the accountability of companies and the court is not going to back down now,” he added. BM
