Kigali: South African local giant MTN Rwanda has been told to pay 70 million Francs (about $140,000) in fines to the government regulator for failure to meet contractual obligations, according to a decision of the Rwanda Utilities Regulatory Agency.
The local dominant giant was given a five year duopoly, after a cabinet decision in 2003 to operate as national operator had failed for some reasons to meet quality of service provision.
Under the licence, MTN Rwanda was to construct, maintain and operate a 900, 1,800 and 1,900MHz, GSM telecommunication network within the geographic territory of Rwanda.
After receiving numerous complaints, the government regulator says it found that the provisions of these requirements were not met as provided for in their operational contract, calling for a penalty against the telecom operator.
A 3-page document from RURA's board meeting held in August 2008, signed by the Chairperson Marie Claire Mukasine says, "MTN Rwanda is hereby imposed a daily fine equivalent to 5 m Francs ($10,000) for two weeks"
"During the above period MTN Rwanda shall submit to RURA a clear roadmap showing the actions to be undertaken to meet the quality of service standards. The roadmap shall ensure that MTN will be able to solve the problem within a period not exceeding two months," it adds.
It has not been clear whether the firm has paid the fine yet but the RURA Board decision points out that failure to pay, ‘further sanctions shall be applicable’.
MTN Rwanda is engaged in mobile phone service, broadband and public wireless pay-phones. Recent data shows that it has some 700.000 subscribers on its mobile service – by far the largest and dominant player in the sector. The other competitor Rwandatel – recently bought by the Libyan government is just struggling to even keep on air.
Since this year started, customers on the MTN Rwanda lines have experienced difficulties with making calls or even sending SMS. Officials with the giant provider have said that was caused by its upgrade activities.
President Paul Kagame also put his weight to the complaints of MTN clients saying that the company may have under-looked the country and did not invest much - so when customers came flowing, the firm has not coped.
The former owner of Rwandatel, American Greg Weylar’s TERRACOM was also kicked out of Rwanda and fined several thousand dollars after it did not meet any components of its ambitious program.
The new MTN saga comes at a time when experts have rated Rwanda and Uganda – where MTN operates, as charging highest for local and international call. MTN Rwanda officials told RNA last year that the call prices are as high because it is very costly to do business in Rwanda where they have had to put up infrastructure from nowhere. (End)
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