MTN demands R170m from GloCell over prepaid airtime

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Jacqui O’Sullivan, executive for corporate affairs at MTN.
Jacqui O’Sullivan, executive for corporate affairs at MTN.

MTN is demanding over R170 million from SA’s largest independent cellular service provider GloCell for unpaid airtime purchases.

The mobile operator has since issued summons as it attempts to recover the monies accumulated and held by GloCell.

GloCell, which counts some local banks as shareholders, was founded by CEO Alessandro Mariola. It was appointed by MTN in 2013 as a service agent to distribute its prepaid products to customers.

According to the summons, MTN claims between 11 December 2017 and 5 February 2018, GloCell failed to remit payments for prepaid airtime.

“The matter between MTN SA and GloCell relates to unpaid airtime purchases. The matter is ongoing and summons have been issued for the recovery of payment from GloCell. Further detail on this matter remains confidential between the parties involved,” says Jacqui O’Sullivan, executive for corporate affairs at MTN.

Efforts to get comment from GloCell by the time of publishing were not successful.

GloCell is a major distributor of prepaid mobile products from all the telcos, with annual revenue in excess of R5 billion and dispensing over 40 million airtime transactions monthly.

The company is also a leading supplier of electricity, comprising hundreds of local municipalities, plus other value-added-services.

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