Commercial Court Division We did inform you that the traffic from MTN terminated on the number range +256 477 xxx which was temporarily assigned to Gemtel, would be international traffic terminating in Southern Sudan and the termination rate would be US$ 0.50 with effect from June 1, 2006. We are concerned that MTN has refused to accept this rate although the traffic from MTN and being terminated on the Gemtel network is growing and also includes international traffic transiting MTN and terminating on Gemtel via UTL. We have blocked the traffic as we have failed to come to an understanding on this matter. We therefore seek to negotiate and agree on this rate as soon as possible, we therefore propose a meeting on Friday May 25, 2007 at 12:00 noon at our offices at Rwenzori Court …” It is therefore clear that by 23rd May, 2007, a significant amount of traffic to Southern Sudan had already commenced. However, it was also clear that there was no mutual agreement between UTL and MTN how to handle the traffic. Instead there was a lot of back and forth correspondence on the matter. Nearly two years later, MTN wrote to UTL on the 29th February, 2008 (Exh. P. 13) and stated “… the MTN invoices make no reference whatsoever to traffic to Southern Sudan as the current interconnect agreement with UTL has no provision for this route. It has always been the position of MTN Uganda that all traffic terminating on the UTL network code +256 47 xxx is local traffic and this has not changed. All reconciliations in our invoices are based on this position which is consistent with the interconnect agreement …” HCT - 00 - CC - CS- 297- 2008 /7