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UCC asks Smile, ATC to resolve  ongoing disconnection dispute 

Smile says ATC illegally disconnected its services, a claim, which ATC says is false. Photo / File 

What you need to know:

  • Whereas Smile says its services were disconnected illegally, ATC says the claim is false

Uganda Communications Commission (UCC) has asked Smile Communications and  American Tower Corporation (ATC) to find an amicable solution to the ongoing dispute, in which Smile accuses ATC of illegally disconnecting its network. 

In response to our questions over the dispute, Ms Irene Kaggwa, the UCC acting executive director, told Monitor yesterday that, as the regulator, they had asked Smile to “provide an explanation to its customers for their prolonged outage and advise on their fate”. 

However, she noted: “We would prefer that the disputes are handled elsewhere, in an amicable manner within the respective channels made available by the law for credibility of the sector and stakeholder confidence”. 

Smile has in the last two weeks published a series of statements, in which it claims losses to a tune of $120m due to illegal disconnection by tower company, ATC contrary to license obligations.

Mr Silvernus Okoth, the Smile acting country manager, said in the statements and subsequent phone calls that the service outage had resulted from ATC’s illegal disconnection, which had not only impacted Smile’s operations but denied consumers a credible service, while at the same time impacting jobs and livelihoods that are dependent on Smile. 

Smile, which has been operating in Uganda since 2009, also has a presence in Nigeria and Tanzania. 

Its dispute with ATC dates back to 2018, on claims of discriminatory pricing practices, as well as unfair and illegal power billing practices. 

Smile also accuses ATC of collecting about 50 percent more than the tariffs set by Electricity Regulatory Authority, which dispute had been arbitrated, before it was decided in favour of ATC. 

However, Mr Okoth said Smile is challenging their service shutdown and had proceeded to terminate all contracts it had with ATC, before filing a request to return its equipment to resume services with an alternative tower partner, which ATC has refused.  

Asked about the matter, Mr Mark Turyamureba, the ATC Uganda head of legal and regulatory affairs, said claims by Smile were false, indicating the matter was before court.  “Smile’s allegations are not true. However, while we do not comment on ongoing litigation matters … we can confirm that ATC adheres, in all matters, to the law, and that we will not hesitate to pursue legal action in response to baseless attacks on our reputation,” he said.  

In her explanation, Ms Kaggwa also indicated that UCC had received a complaint from Smile against ATC for disconnection of its services, which was handled with due consideration of the interests of both parties, consumers and the wider development of the country but “Smile was not satisfied with the ruling of UCC and decided to go back to court”. 

It was not immediately clear if UCC had already devised a mechanism through which the two – Smile and ATC – would find a solution to the dispute.