SPTC offered to withdraw ONE, Fixedfone

This was in a bid to end the bitter dispute with Swazi MTN, which was set to be heard by the International Court of Arbitration in Geneva, Switzerland which was due to begin last night.

The hearing was expected to continue until tomorrow.

Impeccable sources have revealed to this publication that SPTC wrote a letter to Swazi MTN a couple of weeks ago and made the offer which was going to stop the arbitration process from proceeding.

Yesterday, word was abuzz that SPTC had already agreed to withdraw these two phone services.

Sources said the Ministry of Information Communications and Technology had also been informed of SPTC’s offer.

However, the sources revealed that no agreement was eventually reached regarding the offer.

SPTC ended up withdrawing it late yesterday.

"This therefore means that the arbitration goes on tomorrow. SPTC has already notified the International Court of Arbitration as well as Swazi MTN of the decision to continue with the arbitration process," a source close to the matter revealed.

Sources said Swazi MTN had welcomed the offer from SPTC because that was the relief it sought from the International Court of Arbitration.

SPTC is said to have offered to withdraw ONE and Fixedfone services after conceding that these two projects were in breach of the Joint Venture Agreement entered into with Swazi MTN in 1997.

The 1997 JVA bars SPTC or any other Swazi MTN shareholder from operating services that are in competition with the mobile phone operator.

"It appears SPTC was advised that they would not win the matter at the International Court of Arbitration. In the letter to Swazi MTN, SPTC conceded they launched ONE and Fixedfone much against the spirit of the agreement. They then offered to shut down these operations," a source said.

On the other hand, a source at SPTC said withdrawing ONE and Fixedfone was just a proposal.

Nothing was formally agreed on, said the source.

"At one point it looked likely we had reached an agreement with Swazi MTN, hence the arbitration did not proceed yesterday. The problem is that MTN understood the offer to mean we were going to shut down the whole operation, yet we only agreed to have the Fixed wireless phone restricted to defined zones," the impeccable source said.

The source divulged that the major problem was that "SPTC and Swazi MTN were poles apart on agreeing on the definition of the word mobile".

"Swazi MTN argued that any phone that could be taken and used outside a house or building was mobile, but SPTC argued that that was not the case as a fixed phone could be used outside a house or building as long as it is within a marked zone, not all over the country as is currently the case," the sources said.

SPTC Managing Director Elijah Zwane could only confirm that all that was put on the table were proposals.

"No agreement has been reached with Swazi MTN so the arbitration process goes on," Zwane said.

Meanwhile Swazi MTN Corporate Affairs Manager Mpumelelo Makhubu did not want to commit himself much on the issue at present.

"Swazi MTN cannot comment at the moment for purposes of integrity, but we will issue a statement in due course," Makhubu said.

It painful to hear that but on a serious note; SPTC`s services were better than those offered by mtn. MTN sewenta matsanda coz we are desparate for its service n that why nyalo anenkinga naSPTC. What kind of a business it is f ingayifuni icompetition.
Mar 22, 2012, 5:22 AM, Dolphinz Toombela (simanganhlengetfwa@gmail.com)

SPTC management is embarrassing us 'cos they don't know what they're doing. MTN is making them look like fools and they allow them. Some of us technical staff members here saw the JVA and it says SPTC cannot use GSM technology which is used by MTN. So SPTC chose CDMA technology for broadband, ONE and Fixed Fone. 8ta in SA copied from us after that 'cos they use CDMA too. So what's the problem bekunene? I thought the Bugani we donated was gonna help clarify things. They say lifa letiwula lidliwa tihlakaniphi mani, they must've been thinking about us here at SPTC.!
Mar 22, 2012, 5:22 AM, Anonymous (anon@yahoo.com)

Fixedwireless is the best deal that we as Swazis have ever experienced. the whole nation must stand to kick MTN out. We want the product because it suits us the poor people of Swaziland. MTN charges are high and cannot afford a good life with mtn. We will fight with SPTC because it provives us with good deals. viva sptc.
Mar 22, 2012, 8:25 AM, Dlamini Sicelo (skakadza@yahoo.co.uk)

I hope the arbitrator will consider inputs from both parties in this matter. As far as I can see, I think the 1997 JVA agreement were strong binding within the stipulated 10-year monopoly to MTN, thereafter a clause could easily shelve it to archive. Another thing in this case is the issue of definitions in as far as mobile services are considered, so I would suggest a neutral specialist be brought to share more light on this area. If MTN can go away with this, I am afraid many companies like Real Image who use Wi-Fi and Wi-Max services would be operating on MTN mercy. Even some landline customers have purchased some gadgets like cord-less telephones that can be operated within a radial of several kilometers and MTN can think that is mobile if a customer can be seen answering that gagdet in a nearby vicinity. MTN please release us from the prison of monopoly and be prepared to compete with many companies in this market.
Mar 22, 2012, 8:25 AM, No one can change change

I have been following this issue for some time now and I feel compelled as a tax payer who is privy to some of the facts to shed some light to the countless Swazis who have been misinformed and misled by greedy politicians and corrupt SPTC management. As a taxpayer I know that SPTC has let down the nation and has caused all this mess. Now let me give you the facts. SPTC is the controlling shareholder at MTN and cannot compete with its own company no matter what the technology. The Supreme Court judgment of 2011 ordered SPTC to stop Marketing and advertising their Fixed wireless and to stop connecting new customers to this network. But stubbornly they ignored this court ruling. We talk of obeying the rule of law at National level, what then do we make of what SPTC is doing, ignoring and defying court rulings. I’m ashamed to say that SPTC can never operate in any country outside of Swaziland period; because of poor governance. I hope they will not come to Government hat in hand begging for a subvention from our taxes after the hilarious comedy in trying to run the ONE network. We demand that Government investigates this Corporation because there is more than meets the eye in this issue. Concerned Citizen
Mar 22, 2012, 10:26 AM, anonymous (anonymousswazi@yahoo.com)

Seems like MTN wants to dictate how we want to live our techno-lives. MTN knows very well that the vast majority of the Swazi nation enjoys these services since they are well better off than theirs. We don't care about the agreement they signed with individuals who do not care about the lives of the Swazis. Sicoleleni please, we want to go ONE! We are fed up with More Trouble Network.
Mar 22, 2012, 10:26 AM, Lord Anthony (anthonym198@gmail.com)

I think SPTC has realized it's mistake of trying to compete with itself (based on the fact that they own 41% of MTN). To be honest, it doesn't make sense to compete with one's subsidiary, never mind the JVA, the only problem is when competition is prevented that would have otherwise benefited the man in the street in terms of cheaper tarriffs as seen in ONE. Again, the flip side of this is that SPTC stands to gain by withdrawing ONE, never mind what happens to us because they stand to get higher dividends from MTN who will continue their monopoly unabated. Shameful isn't it? From the onset I thought the launching of ONE cellular network was a mistake by the board, which surprisingly, was endorsed by cabinet and parliament, much against the spirit of the JVA. Tragic isnt it? However, given the ownership structure of MTN in terms of who are the shareholders, I knew No matter how determined SPTC was to continue ONE, they would bow to the pressure from the shareholders (ironically SPTC itself, and the highly placed individuals owning shares there). So it's not about protecting the interests of the populace from higher tariffs, but making as much money through MTN; which by the way bankrolls operations of SPTC and ultimately government as owner of SPTC. I think SPTC has come to the realization that the time for gymnastics is over, the reason for standing down on the arbitration. My only concern are the wasted costs in legal battles and arbitration, and of course the huge fines that would be handed down by arbitration as we hear MTN is praying to be compensated huge amounts. This would be yet another looting of taxpayers' coffers. Question is, where will it end, and what is going to deliver ordinary citizen from the high cellular tariffs as our only hope, ONE looks poised to fail?
Mar 22, 2012, 12:14 PM, Burns Dlamini Lobhoncela (Burnspolitics@gmail.com)

This goes to show how we Swazis are not united, MTN is ripping us off and SPTC has always been there for us...why cant we the consumers boycott MTN? Its not hard and its do-able. Everybody should buy the 'one' sim card and ditch using MTN once a week say Fridays and use one instead, I tell you MTN will feel the pinch. SPTC will be able to cover network to everyone in due course because of the Friday boost. such boycotts works.
Mar 22, 2012, 1:50 PM, phumasilwe (sma_boo@yahoo.co.uk)

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