Uganda: MTN Completes Payment of $ 100 Million Fixed for Telecom License Renewal
June 17th 2020
MTN can again operate without fear in Uganda. The company has completed the payment of the $ 100 million set to renew its telecoms license expired since 2018. Valid for 12 years, it will be operational from July 1, 2020. 20% of MTN’s capital will have to float on the local stock exchange within 5 years.
Telecommunications operator MTN Uganda has announced that it has finalized payment of the $ 100 million claimed by the government for the renewal of its telecommunications license in the country. According to Peter Ogwang, the Ugandan Minister of State for Information, Communication Technologies and National Guidance, the amount was to be paid in two installments of $ 50 million. They were made to the Uganda Communications Commission (UCC).
MTN’s new license in Uganda will become operational on July 1, 2020. It will be valid until 2032, twelve years. It will allow the telecoms company to pursue its ambitious project to cover all of Uganda in the telecom network. 260 million USD are announced for this purpose.
The objective behind this ambition is to register new customers in both urban and rural areas which have so far been poorly covered. This increase in the subscriber base will contribute to an increase in network traffic and the company’s revenues.
The payment of its telecoms license completed, MTN Uganda will now have to think of the floating of 20% of its capital on the Uganda Securities Exchange under the terms of the agreement concluded with the government. The operation is expected in the next four to five years. It will allow Ugandan investors to also benefit from the growth recorded by the telecommunications sector.
On June 12, 2020, Charles Mbire, the president of MTN Uganda, promised that the telecom operator would remain a corporate citizen and be associated with the development of the country.
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