BUSINESS: New MTN data offers

UCC seeks clarification

MTN’s issues with the regulator; the Uganda Communications Commission (UCC) appear more complex. In a letter dated July 7 to MTN Uganda Chief Executive Officer, the UCC Executive Director, Godfrey Mutabazi seems to suggest that the regulator is concerned that MTN did not seek approval for the changes.

Mutabazi notes that the telecommunications (tariff and accounting) regulations No. 27 of 2005 requires that all tariffs are filed with approval from the regulator.

The same requirement is reflected under article 8 of MTN’s license for the operation of the telecommunication system and article 18 thereof which provides for non-compliance with this provision as a ground for suspension or termination of the license.

Mutabazi also notes that the commission is mandated under section 5; 1 (e) of the Communications Act, 2013 to regulate rates with a view to protecting consumers from excessive tariffs and to prevent unfair competitive prices.

He directs MTN to submit the most up to date schedule of retail pricing for all regulated services and products available on its platforms. The commission further demanded that the company provides a detailed justification for all price changes for the past 12 months, for which the commission was not notified by close of business on July 12. It is not clear if UCC is concerned about the new MTN pricing model. However, this is not the first time MTN is changing its pricing and UCC has not raised any major issues in the past.

At the time of going to press, officials of MTN and the regulator were set to hold a meeting to deal with the matter at hand.

Katamba said the law requires them to inform the commission about the offers and not seek approval.   According to him, the social bundles MTN is offering are a service or promotional offering which are not supposed to be approved by the UCC.

“A bundle is an offer and not a data charge; it is all about a billing method,” Katamba said.

In response, Mutabazi said that the commission had moved in to protect customers who had raised complaints about the new offers.

There is also concern from the MTN side that the UCC letter was written on July 7 but only got to their office by email (as soft copy) on July 11 (Tuesday) at 6:30pm.

“We are shocked that the letter circulated in the media before it even got to us,” Katamba said. “We are not shaken; we will handle this in the normal professional way.”

Katamba explained that MTN is a big player in Uganda’s telecom sector and has been compliant with the law evidenced by their quarterly submission of reports to UCC.

“We have always had a good working relationship with UCC,” he said, “We know what we are doing is correct.”

Mutabazi admitted that there could have been anomalies in sending the letter to MTN in terms of time and the method, but said the most important thing was for the company to respond to complaints raised by customers.

Apart from MTN, Mutabazi said that the commission plans to act on other telecom companies acting without approvals.

Ibrahim Bossa, the head of consumer affairs at UCC told The Independent on July 17 that UCC got to know about the new offers after monitoring complaints on social media and through their customer care service lines.

Bossa said that the Uganda Communications Act, 2013 is clear and states in part that operators have to notify the regulator about any offers (promotions and more) to their customers to enable the commission monitor and block actions that would distort the market.

He urged telecom firms to be more transparent and engage their customers on new offers and innovations before they are put on the market for use. He confirmed that a meeting had been scheduled between MTN and UCC.

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