After a bitter legal dispute with South Africa-based telecoms group MTN, Swaziland’s state-owned telco SPTC is considering its options, including a possible divestment of its stake in MTN Swaziland, TelecomFinance understands.
SPTC currently holds a…
After a bitter legal dispute with South Africa-based telecoms group MTN, Swaziland’s state-owned telco SPTC is considering its options, including a possible divestment of its stake in MTN Swaziland, TelecomFinance understands.
SPTC currently holds a 41% stake in MTN Swaziland, while MTN controls 30% under a 1997 JV agreement.
The two companies have recently been in dispute over SPTC’s own offering of mobile phone services, which MTN has argued was in breach of the agreement.
In a recent ruling, the International Court of Arbitration upheld a previous decision by the Swaziland Supreme Court, which had ruled in favour of MTN. As a result, SPTC has ceased offering its ONE mobile service.
But TelecomFinance understands that the company is still considering whether to stop a separate offering, which uses fixed wireless technology.
Local newspaper the Times of Swaziland quoted a government spokesman saying today that the state would not allow SPTC to collapse.
An SPTC spokesman said that SPTC could not comment on the legal process, but added that the company is currently operating as normal.
An MTN spokesman said: “We welcome the decision of the International Court of Arbitration and hope it will assist in bringing back stability and integrity in the local telecommunications industry.”
Â
