Smile pays Airtel Sh1.15 billion to end rental fees lawsuit

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Smile pays Airtel Sh1.15 billion to end rental fees lawsuit
Smile pays Airtel Sh1.15 billion to end rental fees lawsuit

Africa-Press – Tanzania. Dar es Salaam

. Data service provider Smile Communication Tanzania Limited has agreed to pay $500,000 to settle a lawsuit by Airtel Tanzania which accused the telecommunication firm of failing to pay rental fees for using its infrastructure.

Airtel brought a suit against Smile early in 2021 claiming $1million over alleged breach of payment obligation after the former granted site access availability to the data provider between April, 2019 and February, 2021.

However, before the case could get to full hearing, the two companies asked the court to grant them time settle the matter out of court by engaging in negotiations.

Following the negotiation, the parties agreed on some terms and conditions and prepared a settlement deed that was filed in court and asked the court to adopt it as its judgment and decree.

“Since parties have decided to amicably settle the matter, I hereby pronounce judgment as per the terms and conditions set out in the settlement deed and accordingly rule that the matter is marked settled,” said Lady Justice Katarina Mteule.

Under the terms of the agreement, Smile agreed to pay Airtel $500,000 as full and final settlement of all the amount Airtel was claiming from it.

It was also agreed that Airtel would not charge Smile for the period their equipment were switched off and all invoices and all invoices issued for that period shall be considered cancelled immediately upon signing of the settlement agreement.

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