Rwanda’s telecommunications authority has fined MTN Rwanda $8.5 million for running its services outside the country in breach of its license.
In a ruling posted on its website, the regulator said that Rwanda MTN, a division of South Africa’s MTN Group, was hosting its IT services hub in neighbouring Uganda, which it had prohibited.
“They are punished for relocating their IT services outside Rwanda, and this was deliberate,” Reuters quotes Rwanda Utilities Regulatory Authority Spokesman Anthony Kulamba to say.
MTN Rwanda confirmed that it had been notified about the fine.
“MTN has been engaging with the regulator on this matter over the past four months. MTN Rwanda is currently studying the official notification and will continue to engage with the regulator on this matter,” it said in a statement.
Last year, MTN was embroiled in a row with Nigerian telecommunications authority over a huge fine imposed on it for not disconnecting unregistered users.
It offered $1.5 billion in March, made up of $750 million in cash, with the balance to be paid in the form of various investments.
Other telecoms companies operating in Rwanda are Tigo, a unit of Millicom and Airtel Rwanda, a unit of India’s Bharti Airtel.
