Trouble after Trouble! Uganda Telecom goes off air
By Samuel Muhimba
Uganda Telecom subscribers are currently in limbo with the troubled telecom’s mobile services off for nearly four days now.
Mobile subscribers using UTL SIM cards are currently unable to make or receive calls which has left some of the subscribers with no option but to think of crossing to other networks.
This is another shortfall for the government -owned telecom which has been under receivership since 2017, due to the huge debts amounting to about USh 700 billion (approx. US$200 million).
At the writing of this, neither the industry regulator, Uganda Communications Commission (UCC) nor the UTL management has made an official communication on when this problem will be rectified
However, the telecom company in a short notice said it would communicate restoration updates.
While responding to the matter, UTL management issued a statement saying; “We are currently experiencing a technical failure on our Mobile service platforms. Restoration updates will be communicated. Inconveniences caused are highly regretted.”
A look at UTL’s Rocky Journey
UTL’s woes trace back to March 2011 when the Ugandan government seized Libyan Overseas investment arm, Lap Green's 69 percent shareholding in UTL as part of sanctions against the regime of Muammar Gaddafi. However, the shareholding was returned to Lap Green in May 2012 after the end of the Libyan civil war that ousted then Libyan leader, Gaddafi.
In February 2017, the Libyan -owned subsidiary which was already choking on debts pulled out of the loss making telecom company which left the Ugandan government with no option but to assume total sole control. Two months later, the Uganda government placed the telecom under receivership under Bemanya Twebaze.
In October 2018, in a cabinet meeting chaired by President Yoweri Museveni , resolved that Taleology Holdings GIB Limited of Nigeria, be selected to operate UTL for the next 20 years in a deal that included UTL’s total assets of USh148 billion. As part of the deal, Taleology would in exchange, make a non refundable US$7.1 million (USh27 billion), at signature of the paperwork and another US$63.9 million (USh240 billion) no later than 60 days from that date. Unfortunately, the deal was forfeited in February 2019 after the company failed to offer the required funding to effect the acquisition. Since then, the company has been on market seeking a possible buyer.
In January 2020, Bemanya, under directives of President Museveni was thrown out of office and replaced by Ruth Sebatindira who was appointed by the Civil Division of the High Court of Uganda led by Justice Lydia Mugambe. Sebatindira has since been in charge of UTL’s administration.
