Troubled telecommunications service provider, Uganda Telecom (utl) is to be sold off, EagleOnline has learnt.
According to a source that preferred anonymity, utl is to be sold to a US telecommunications giant, Hamilton Telecommunications. Apparently, negotiations between officials of the two companies have been going on for quite sometime and it is said the two reached an understanding last week.
According to the source, Hamilton Telecommunications will soon be unveiled as the new owners of utl and they intend kick off their operations in Uganda with a 5G technology.
At the time of the sale talks with Hamilton Technologies, UTL had reportedly failed to meet its obligations among which included provision of the latest technology to consumers.
Indeed, utl was still offering 2G technology while its competitors are operating 4G technology.
A visit to its website indicates that Hamilton Telecommunications is ‘a diversified communications and technology service provider based in Aurora, Nebraska. Founded in 1901, Hamilton Telecommunications encompasses seven primary company divisions that allow the company to operate on a local, regional and national basis’.
It is to be remembered that a few months back the UTL board chairman, Stephen Kaboyo told media that there were plans to sell off the company as the only way of ‘rescuing it’.
“The shareholders are discussing an immediate rescue plan that will help UTL regain its solvency, restore business confidence and develop a forward-looking investment plan,” Kaboyo said.
LAP Green, a Libyan telecom investment firm has been the majority shareholder in UTL with a 69 per cent stake while the remaining 31 per cent was owned by the Uganda government.
Between January and February this year the Uganda Communication Commission (UCC) conducted a monitoring exercise, which showed that utl’s liabilities valued at Ush366 billion ($120.5 million) exceeded its total assets base of Ush220 billion ($72.5 million) as of December 31, 2013.