MTN is back at it again. This time not charging their customers excessive prices and fast depleting their data, but defying the industry regulator, and their supervisor, the Uganda communications commission (UCC).
The defiance by MTN is just one of the many controversial acts the telecom has been involved in over the years.
Just last month, MTN maliciously switched off inter connectivity with Africell over an un-named disagreement. UCC reigned in directing MTN to open up connection.
Speaking to the Daily Monitor yesterday, MTN’s General Manager for corporate services said they would not respond to the letter sent to them by UCC Executive Director Godfrey Mutabazi asking them to explain why they had adjusted their data and voice prices without informing the communications commission.
We dont care!
In a bullish manner, Anthony Katamba who also doubles as MTN Uganda’s chief legal counsel while speaking to the Daily Monitor said “Although we got the industry regulator’s letter after close of business hours on Tuesday, the correspondence does not deserve a reply because that is not what the law stipulates”
The said letter dated 7th July and signed off by the UCC Executive Director Godfrey Mutabazi and addressed to the MTN Chief Executive Officer, Wim Vanhulleputte directed that MTN “Submit the most upto date schedule of the retail pricing for all regulated services and products available on the MTN Platforms”
In the letter that MTN is defying to respond to, Mutabazi had directed that MTN “Furthermore, the commission directs that MTN provides a detailed justification for all price changes implemented in the past 12 months, for which the commission was not notified in advance”
The showdown
A response was expected from MTN by close of business yesterday 12th July.
But if the response from MTN’s corporate affairs team is to go by, doubts have been cast over MTN bowing down and submitting their response.
UCC Executive Director Godfrey Mutabazi while speaking to the Daily Monitor had said “We are the regulator, and they must respond to our letter” Mr. Mutabazi said
Public outcry
UCC had written to MTN after thousands of their subscribers cried out to the regulator over what they termed MTN’s “unending theft of our MBs”.
The outbursts started off last week after hordes of customers accused MTN of depleting their data bundles so fast and increasing the rates while decreasing the number of MBs.
MTN’s latest showdown with an industry regulator will not be the first. In the other countries where MTN operates like Rwanda, Nigeria and Iran, MTN has already been in hot soup over regulation defiance.
Not just Uganda
In May, The Rwanda Utilities Regulatory Authority fined MTN Rwanda, 7 billion francs ($8.5m) over non-compliance with licence obligations.
The fine related to directives issued by the regulator prohibiting the inclusion of MTN Rwanda in the MTN South and East Africa (SEA) IT hub based in Uganda.
MTN said in a statement a week later saying they had surprisingly acknowledged the fine.
While in October last year, a similar fine was imposed on MTN Nigeria. MTN Nigeria was fined a staggering $5.2 billion for failing to comply with the directives of the National Communication Commission (NCC).
MTN was fined for non-compliance with a deadline set by the NCC to disconnect all non-registered sim cards. MTN failed to comply despite being given a 12 month warning on the importance of ensuring that only SIM cards with valid SIM registration details should be active.
MTN has been known for controversies not only in Nigeria, Rwanda but also in Iran and lately Uganda. In 2012, MTN was also accused by the Uganda Revenue Authority over evading taxes.
Non-compliance on pricing regulations is the latest of the telecommunication company’s unending controversies that has seen UCC determined to make them pay the price
