Mobile service provider MTN Swaziland has demanded US$100 million compensation from Swaziland Posts and Telecommunications Corporation (SPTC) for breaching a contract and a number of losses suffered.
The state owned corporation established a Cellphone service provider which was against the agreement between the two companies. However the company’s business was stopped after one year by the court following MTN legal move.
During that period, the telecommunication company claims it suffered a loss since many of its clients shifted to the newly established competitor.
MTN says it was illegal for SPTC to establish a Cellphone service provider while their deal was still intact.
SPTC Board of Chairman Arthur Ngcobo, said that the amount requested by telecommunications company was very high.
He said: “Under standard circumstances, this is a lot of money and almost equal to SPTC assets. This money is too much and our company can’t afford to pay.”
The case was reported at International Court of Arbitration and the International Chamber of Commerce.
SPTC unveiled affordable mobile services and products comprising of Fixedfone to compete MTN Swaziland.
According to the letter signed by Magagula & Hlophe Attorneys on July 10 this year, the SPTC is supposed to notify Swaziland MTN in a duration of five days.
MTN is a South African telecommunication service provider that offers services in Swaziland
While SPTC has been in Swaziland for more than 20 years, it’s a state-owned firm under the Ministry for Tourism, Environment and Communications and offers mail, Phutfumani Couriers,Telecom and Internet services.
