The Uganda Communications Commission (UCC) has decided to entrust the mobile operator Airtel with the management of its competitor K2 Telecom, which was closed last May for failing to pay four-year tax fees. Abdu Salaam Waisswa, the director of legal affairs at the UCC, revealed it on July 27, 2018. He explained that Airtel will answer all K2 Telecom’s network and quality of service questions until in 2021.
Under the management of Airtel, K2 Telecom will operate as a virtual mobile network. Co-branded K2-Airtel SIM cards will now be available to consumers. According to Vincent Seruma, the spokesperson of the Uganda Revenue Authority (URA), Airtel’s management of K2 Telecom’s business does not mean at all that it is an acquisition of the failing company by Airtel. subsidiary of the Indian telecommunications group Bharti Airtel. It’s just a temporary solution to allow K2 Telecom consumers to keep their mobile line and be always reachable.
The Ugandan tax authorities claim K2 Telecom a total of 94.8 million Ugandan shillings (approximately $ 25,703) representing 17 million shillings (US $ 4,069) in local excise and 77,8 million shillings (US $ 21,093) in income taxes.
By taking over the activities of K2 Telecom, Airtel Uganda will see its subscriber base enriched with nearly 100,000 new customers. But this growth of subscribers to nearly 7.5 million people will not really allow him to threaten MTN which occupies the position of leading operator with nearly 12 million subscribers, far ahead of Africell which claims nearly 1.5 million customers.