MTN renews license to continue its services in Uganda

MTN Uganda has closed a near two-year renegotiation of its operating license, agreeing a 100 million dollars deal which secures its position for more than a decade, according to a news report by 'mobileworldlive.com'.

The agreement with the Uganda Communications Commission comes into effect from 1 July and covers a 12 year period. In a statement, MTN explained its previous 20-year license expired in October 2018 but was variously extended to accommodate the conclusion of renewal negotiations which have been ongoing for close to two years.

MTN and the regulator will conclude the signature of the Licence Agreement within the coming days, it stated.

Parent MTN Group had fulfilled all conditions for the license, including the renewal fee payment, the operator added.

The renegotiation was stalled when an initial 50 million dollars offer by the parent company was rejected by Uganda's President, Yoweri Museveni, a local newspaper reported.

GSMA Intelligence figures placed MTN Uganda as the biggest operator in the country in Q1, with 13.1 million connections. Main rivals Airtel Uganda and Africell had 11.3 million and 2.4 million respectively.