Airtel Uganda settles interconnection impasse

PC Advisor.

Airtel, a subsidiary of India's Bharti group, earlier this week said its interconnection agreement with Uganda Telecom, which is owned by the Libya African Investment Portfolio, was terminated over $2.3 million debt.

New Vision says Airtel Uganda intends to block calls to UTL unless the debt is cleared.

Interconnect fees are charged by telecommunications companies for allowing calls of rival networks.

Earlier this year, MTN Uganda threatened to block calls to UTL over a $8.6 million debt in unpaid interconnection fees.

However, following the intervention of the state regulator, Uganda Communications Commission, the two reached an understanding over the debt payment.

Airtel Uganda is increasing its tariffs starting this week, according to Telecom Paper. The increase is due to the higher costs of doing business in Uganda, according to VG Somasekhar, MD of Airtel Uganda.