Smile also raised objections to the illegal power billing practices employed by American Towers, whereby they collected nearly one hundred percent more than the tariffs set by the Electricity Regulatory Authority of Uganda. Additionally, Smile contested American Towers’ unfair and monopolistic pricing, especially towards non-anchor tenants (second/third tenants).
This acquisition resulted in the emergence of a de facto monopoly in Uganda’s telecommunications tower leasing market. The disagreements included discriminatory pricing practices by American Towers, which became more pronounced following its acquisition of Eaton Towers. These disputes were duly referred to arbitration in accordance with the underlying contracts. The contradiction between their actions and the standards set by the NYSE raises significant concerns about their disregard for ethical conduct and adherence to industry norms.Īs it is not uncommon for entities in a business relationship to face conflicts, Smile found itself embroiled in commercial disputes with American Towers as early as 2018. It is indeed perplexing that American Towers, a subsidiary of one of the largest communications towers companies in the world which is listed on the New York Stock Exchange, would engage in such practices, especially when the regulations of the NYSE explicitly discourage such behaviour, even from subsidiaries of listed entities.
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Smile strongly believes that American Towers operates in a coercive manner, displaying a blatant disregard for the law, its license obligations, industry best practices and most importantly, the well-being of the Ugandan people, since we live in an age where communication services are of paramount importance. Smile holds them solely accountable for this regrettable situation. To Smile, the extended service disruption experienced can be unequivocally attributed to the actions of American Towers Corporation, the dominant provider of telecommunications passive infrastructure services in Uganda. It genuinely apologises for a situation that was beyond its control and reiterates its sincere regrets. Smile wholeheartedly appreciates the patience and understanding demonstrated by its valued customers and the general public.
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It acknowledges that this update should have been provided earlier, however, it was imperative for Smile to first establish a solid legal footing before sharing these details with our esteemed customers and the wider public. In acknowledging the inconvenience caused, Smile believes it is important to inform the public about the circumstances that led to this unprecedented downtime. Smile Communications Uganda Limited, the pioneering provider of 4G LTE services in Uganda and East Africa, as well as the first to introduce VoLTE services in Africa, deeply regrets its prolonged service outage experienced since January 31, 2022. Smile Presents Facts on the Causes of its Unprecedented 15-Month Service Outage and Apologises to its Cherished Customers
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Here below is the full statement in verbatim. In the statement, the telecom also said it was it would, with “unwavering determination” pursue justice and remained steadfast in its pursuit of a fair and just outcome. Smile also blames the telco for operating in a “coercive manner, displaying a blatant disregard for the law, its license obligations, industry best practices”. “Smile holds them solely accountable for this regrettable situation,” the statement reads in part. Country Manager, Smile Communications Uganda Limited, the telco said that it “unequivocally” attributes the outage to “the actions of American Towers Corporation, the dominant provider of telecommunications passive infrastructure services in Uganda”.
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