Telecel promo deal turns sour

Mega Promotion, expected to realise gross revenue of US$2,4 million, to be shared equally between the parties. But Telecel argued the promotion was based on a generic concept used by mobile phone operators across Africa and the world and that the parties never reached an agreement on it.

“Having considered matters raised (in) your demand, we write to advise that we are not aware of the existence of the alleged agreement,” Telecel said in a letter from its legal counsel.

In an e-mailed response to the proposal by Mobile Connexion, Telecel marketing director Mr Obert Mandimika said: “We are also working with another partner on the provision of Mega Promotion, but nothing is finalised yet.”
He then asked that Mobile Connexion provide full details of its proposals, which the latter did on January 12 this year. Mr Mandimika said that an opportunity existed for the two firms, if what Telecel was already working on was not fully covered.

Mobile Connexion and Jet Telecomms spokesperson Mr Peterson Tengende said if Telecel did not meet their demands the two firms had little option but to issue summons.

“Telecel is running the exact promotion, proposed to you by our client, under the exact same name originated and agreed between the parties,” Mobile Connexion’s lawyers wrote.
“The parties held a meeting at your offices and the agreement, as stated above, is partly written and partly verbal.
“Further details can be obtained from your aforementioned company officials who are in possession of the final proposal, which client prepared and Telecel agreed to,” they said.

The concept involved the use of digital platform with applications allowing SMS-centred communication where subscribers win periodic prizes for correctly answering a structured quiz. Jet Telecomms was supposed to provide the technology.

Mr Mandimika said the second the country’s largest mobile phone operator was already working on a similar concept when Mobile Connexion submitted their proposal.

“We entertained the idea of working with these guys, but nothing was ever agreed,” he said.  “When we went to Burundi we were told by our parent company the concept had been operational for five years in Egypt and was a major revenue earner.”

 

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