Mozambique: TMCEL and Vodacom reach agreement – AIM

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Mozambique: TMCEL and Vodacom reach agreement – AIM

5:05 CAT | 10 Jul 2021

File photo: Lusa

After lengthy negotiations, the Mozambican mobile phone companies Tmcel and Vodacom have reached agreement on how to deal with Tmcel’s debt of over 600 million meticais (about 9.5 million US dollars) to Vodacom.

In mid-June, Vodacom had threatened to end its interconnection with TMcel, which would make it impossible for TMcel subscribers to ring Vodacom numbers. Vodacom claimed it was forced to take this drastic action because of Tmcel’s large debt, arising from its alleged failure to comply with the interconnection contract between the two companies. This contract allows subscribers to each of the companies to make phone calls and send messages to subscribers of the other network.

The regulatory body, the Mozambique National Communications Institute (INCM) stepped in to mediate between the two companies.

According to an INCM press release, it was agreed that Tmcel should immediately pay a third of the debt (about 200 million meticais). It will then pay Vodacom 12 million meticais a month – this sum is supposed to cover the monthly interconnection invoices. If the invoice comes to less than 12 million meticais, the difference will go towards liquidating the remainder of the debt.

But if the invoice is more than 12 million meticais, Tmcel must pay it all, and seek alternative means of paying off the remaining 400 million meticais of debt. Tmcel has 90 days, counted from 5 July, to propose these alternatives.

Thanks to this agreement, Vodacom has withdrawn its threat to cut the interconnection. The INCM release claimed “the guiding factor for consensus between the two operators was the importance of continuity in the telecommunications services provided to the users of the two companies, and the public interest”.

The INCM says it will continue to monitor the situation until the debt is completely liquidated.

Source: AIM