By Andrew Irumba
The Management of MTN Uganda has finally secured Twelve-year license from the Uganda Communications Commission (UCC) and this came at a huge price of making a Shs373.5Bn down payment before acquiring the license.
The new development was announced Saturday by MTN Uganda in a tweeted message stating thus; “MTN has fulfilled all conditions precedent to the license, including the payment of a total sum of US$100Million license renewal fee for a period of 12 years commencing 1st July 2020. MTN and the Commission will conclude the signature of the License Agreement within the coming days.”
They added thus; “MTN Uganda is now pleased to announce the conclusion of negotiations for the renewal of its Second National Operator license (SNOL),which expired in October 2018. #MTNLicense”
The new deal however comes after almost a two-year standoff with Government, following a spate of arrests for some senior MTN officials and the deportation of the Chief Executive Officer Wim Vanhellepute, although he was later pardoned and allowed back into the country after talks between him, President Yoweri Museveni and the Management of MTN Telecom South Africa.
The Government fell out with the Telecom giant after accusing some of its senior officials of espionage and money laundering. Matters worsened after UCC declined to renew MTN Uganda’s license following its expiry on October 12, 2018, when UCC revised the prior queried USD 100 million assessment to USD50M.
When intelligence reached President Museveni, he swung in action by halting the licence renewal saying that the fee set was nominal and unfitting of the MTN Uganda he knew.
Then President Museveni thus directed UCC not to renew the license if they couldn’t to collect USD100 million from MTN.
However, MTN Uganda protested the new fee, prompting President Museveni to ask them to leave Uganda if they couldn’t pay the USD100 million.
He also advised them to trade on Uganda Security Exchange, a move that would allow Ugandans to buy shares in the Telecom and help them recapitalize, although they declined the move.
In its statement about the license renewal, MTN Uganda aknowledged the license debacle, noting that although their license had expired, it was variously extended to accommodate conclusion of renewal negotiations which have been ongoing for close to 2 years.
“MTN Uganda is now pleased to announce the conclusion of negotiations for the renewal of its Second National Operator license which expired in October 2018. MTN Uganda provides telecommunications services under a Second National Operator License for the operation of a telecommunications system issued on 15 April 1998 for a period of twenty years,” the Telecom said a statement.
Wim Vanhellepute tweeted thus “We would like to thank HE the president, MoICT and UCC officials for sucessfully concluding these license renewal discussions #goodtogether with #MTNUGANDA”
