The interconnect payment agreement between Uganda Telecom and MTN is limited to local traffic. But Justice Geoffrey Kiryabwire of the Uganda High Court ruled that communication traffic carried by Uganda Telecom on MTN's behalf to Southern Sudan was local traffic.

This is because Gemtel uses the calling code +256 477, which the court recognized as a local call. Uganda Telecom argued in the original suit, and are expected to push the same argument in the appeal that their network and Gemtel's are two distinct networks located in two different countries and locations.

Gemtel started using the Uganda code in 2006, after the government granted Uganda Telecom permission to further authorize Gemtel to use Uganda's international code. Upon this arrangement, Uganda Telecom requested MTN to treat traffic on the Sudan network as international not local. MTN rejected the appeal although it continued sending traffic to Sudan.

In February, MTN threatened to stop carrying calls from Uganda Telecom, the third largest operator in Uganda in terms of subscriber numbers, over unpaid local and Gemtel interconnect charges. The Uganda Communications Commission (UCC), however, intervened and MTN relented.

At the time, MTN said continuing its agreement with Uganda Telecom was a business risk as debt continued to grow unabated.