Rwandan telecommunications regulator, the Rwanda Utilities Regulatory Agency (RURA) has fined MTN Rwanda, the country’s largest telecom operator by market share, Rwf7 billion (approximately USD 8.5 Million) for breach of license obligations.
The Authority says MTN Rwanda Limited implemented IT managed services under an MTN Regional hub outside the country which was in contravention of the directive issued by RURA.
“MTN Rwanda Limited proceeded with this implementation despite having discussed the matter with the regulator and having been warned that such action would constitute a serious breach of license obligations,” reads part of a statement released by RURA.
“By doing so, MTN Rwanda breached its license obligations requiring it to comply with all applicable laws, regulations and any other regulatory instruments issued by the competent Authority,” the statement further reads.
The details of the directive issued by the regulator however remain unknown.
The statement indicates that RURA, on May 4th gave MTN the opportunity for a hearing where they were informed of the breach and allowed to defend themselves.
MTN reportedly admitted to the breach and accepted to pay the fine.
MTN Group has released statement indicating that the fines are related to failure to respect obligations restricting to match MTN Rwanda technology with MTN database from Southern and Eastern Africa based in Uganda.
The statement adds that MTN negotiations with RURA held in the past four months about the issue will be continued.
MTN started operating in Rwanda in 1998. It had 3,988,604 subscribers at the end of 2016.