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Econet withdraws NetOne lawsuit

by Business reporter
03 Jul 2013 at 06:38hrs | Views
Econet wireless has withdrawn its $12 million lawsuit against its competitor NetOne as two parties were in discussions for an out-of court settlement.

THE country's largest mobile phone operator Econet had filed the lawsuit at High Court in a bid to recover over $12 million from the State owned mobile operator in interconnection fees.

In papers filed at the High Court in May, Econet wireless wanted NetOne to pay its outstanding debt in interconnection fees.

"On or about 13 August 2004, plaintiff (Econet) and defendant (NetOne) entered into an interconnection agreement in terms of which plaintiff provided defendant telecommunications services including voice traffic and leased circuits and these services would be provided for a fee," reads Econet's declaration.

Econet said: "In the period commencing June 2010 to August 2012, plaintiff was entitled to payment of $12 171 048, 64 being interconnection fees due and owing to plaintiff by defendant, which amount, despite demand, defendant has refused, neglected and or otherwise failed to pay.

"Wherefore the plaintiff is entitled to an order directing defendant to pay the sum of $12 171 048,64."

The company was also demanding interest at the prescribed rate from the date of service of summons to the date of full and final payment.

The two companies, Econet and NetOne, operate under an agreement that allows traffic to flow between their networks.

Econet has over the past years turned to the courts in a bid to recover its millions owned by other mobile companies.

Individuals, companies and embassies have not been spared. 

Source - newsday