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MTN Uganda officially renews Shs371.5b operating licence, listing on local bourse possible

By George Mangula

MTN Uganda and Uganda Communications Commission (UCC) have officially signed the MTN License Renewal Agreement as the recently troubled telecom company acquired a 12-year Second National Operating licence effective July 1, 2020.

The much-needed document was acquired at a fixed operational license cost of USD 100 (about 371.5 billion), fully paid in cash.

The official signing of the License Renewal Agreement enables MTN to continue its operations in the country until July 1, 2032.

A joint press conference between MTN Uganda and the Regulatory body was held on Friday at the UCC offices in Kampala to showcase the official signing of the new license.

The deal brings to an end, the long-standing negotiations between MTN Uganda, The Uganda Communications Commission (UCC) and the government. This license renewal comes almost two years later, since MTN Uganda applied for a license renewal following the expiry of their 20 year license in October 2018.

Speaking at the license signing ceremony, the MTN Uganda Chief Executive Officer, Wim Vanhelleputte said that: “I am glad to inform you that our second National Operator License has been signed and MTN can continue operating in Uganda. We are happy and remains committed to our vision of delivering a bold digital life to all our customers through diligent innovations and shall continue to provide high quality voice, data and mobile money services connecting Ugandans across all the 135 districts of Uganda.”

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 License expired on 21 October 2018 but was variously extended to accommodate the conclusion of renewal negotiations which have been ongoing for close to two years.

Not long ago President Yoweri Museveni accused MTN Uganda of under declaring taxes which he said cost his government tax revenue.

Further the company faced the wrath of Museveni’s government as its top officials were deported for on account of interfering with Uganda’s national security, even though the CEO Vanhelleputte was allowed back in the country after the company held negotiations with the government.

Government also wants MTN Uganda among others to list on the local burse-The Uganda Securities Exchange (USE) so that Ugandans can buy and own shares in the profitable company. Analysts say this could be one of the conditions for the renewal of the MTN licence even though they said it could take a few more years before MTN can list on the USE like it has done elsewhere in Africa, for instance; Nigeria.

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