<img src="http://www.cio.co.ke/images/stories/article_images/apr-11/uganda%20telecom%20outlet.jpg" mce_src="images/stories/article_images/apr-11/uganda telecom outlet.jpg" alt="" title="A Uganda Telecom outlet: Uganda Telecom has been ordered by the court to pay outstanding payments to MTN Uganda" class="caption" width="585" align="left" height="438">Following months of wrangling between Uganda Telecom and MTN on payment of outstanding dues over interconnection charges, Justice Geoffrey Kiryabwire of the Commercial Court ruled in favour of MTN. This particular ruling was in regard to a disagreement between the two telecom companies as to whether traffic destined or originating from code +256477 owned by UTL was local or international.In 2006, UTL rented out the code +256477 to Gemtel, a telecom company based in Southern Sudan. This move caused uproar in Parliament with the legislators demanding that the decision be rescinded as Gemtel was not paying any direct taxes to the Ugandan Government, and the company’s shareholders were not known.UTL's argument in this case was that traffic from that code ought to be treated as international thereby attracting different charges compared to those levied on local traffic. However, the judge ruled that the traffic be considered local. He then went ahead to order UTL to pay MTN Ushs 3 billion as the outstanding interconnection charges, and Ushs 1.5 billion as interest accumulated since 2008. UTL also has to pay Ushs 100 million in general damages to MTN.

With round one seemingly out of the way, MTN is readying itself for round 2 as there are other cases it has filed in the same court against UTL.