Anti-monopoly activists question MTN, Airtel alliance 

Anti-monopoly activists have urged parliament to tame the alleged unholy alliance between two telecom giants; MTN Uganda and Airtel Uganda which they say has already created an anti-competitive environment for other players in the country.

The Alliance Against Monopoly (AAM), a Pan-African anti-monopoly group, says the duopoly is made worse by their relationship with America Tower Company (ATC) which has snuffed any business life out of other telecommunications firms.

Specifically, AAM pointer to the deleterious merger plan between American Tower Corporation (ATC) and Eaton Towers which is being considered by the COMESA Competition Commission, saying the plan contains the killer grits of monopoly that will be detrimental to the overall interests of Ugandan consumers who end up paying more for poor service. 

It further urged parliament and relevant agencies of government not to discard the numerous reports of infractions and breach of contracts by industry players as to do so will militate against the economic development of Uganda. AAM described as regrettable the case of infractions by ATC, which business model is considered antithetical to development of Uganda that was ignored. 

AAM also accuses the Uganda Communications Commission (UCC) of its alleged less-than-satisfactory stance against MTN and Airtel keen on maintaining an unleveled playing field.

AAM, in a statement signed by its advisory director Dr Omife Ike Omife observed that the telecommunications sector is the most sustainable source of foreign direct investment (FDI) in emerging countries that are tapping into the opportunities to boost their economies. MTN has been Uganda’s biggest tax pay for several years with Airtel coming in a not-too-distant 3rd position. Last year for example, MTN Uganda Limited topped the taxpayer’s list with Shs 458 billion revenue, Nile Breweries Ltd at Shs 197 billion and Airtel Uganda Limited India Telecommunications at Shs 155 billion.

Uganda, AMM noted cannot be lagging by offering to tow the wrong path of monopoly which buccaneer players create to keep the country behind. It cautioned that monopoly in many ways destroys the market and creates distortions that work against economic development.