TRIBUNAL DISMISSES SAFARICOM BID TO BLOCK CANADIAN RIVAL .

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Safaricom Plc Headquarters Westlands in Nairobi.

BY SAM ALFAN.

Safaricom has lost an application seeking to block a Canadian rival from connecting to its network citing risks of illegal international calls routed through local numbers.

Communications and Multimedia Appeals Tribunal Members Collins Wanderi, Vivienne Atieno, Damaris Nyabuti and Ramadhani Abubakar Mukira dismissed Safaricom’s appeal for lack of merits.

“It is therefore our unanimous finding that the Appeal lacks merit and the same stands dismissed. There will be no orders as to costs”, the Tribunal ruled.

While dismissing the case, the Tribunal observed that having signed the agreement, Safaricom’s appeal had been overtaken by events, and the parties can therefore only be bound by the terms of the agreement.

Tribunal added that if Safaricom’ would find that there is any breach on the agreement, then it can invoke the relevant provisions as per the agreement.

“This tribunal cannot delve into the terms of the particular agreement. The less we say about it the better”, the tribunal added.

Safaricom was challenging the decision made by the Regulator on April 13, 2021 directing them to commence and conclude interconnection negotiations with Irestel Kenya.

Safaricom alleged that the decision ought to have been reached after addressing all the concerns raised and the alleged concerns had to do with Iristel Kenya Limited.

The concerns were that the shareholding of the Iristel Kenya ltd was entirely foreign, being a Canadian Company.

The company argued that Iristel Kenya ltd did not have an existing customer base in its network, neither did it indicate the product it would offer and there was a risk that the firm would engage in simboxing thus causing a danger to national security.

Communication Authority of Kenya opposed Safaricom’s appeal through Matano Ndaro, who said in affidavit that the request from Safaricom touching on its concerns, CA carried out its independent investigations of the alleged issues and on April 13, 2021 responded to Safaricom appropriately and adequately on the said issues.

CA had considered the operations of the Canadian firm and issued it with a licence to provide services in Kenya and by virtue of its authority had vetted the shareholding of the firm and found it to be in conformity with the Regulations.

CA said it had inspected the Iristel’s facilities and its business plan and had satisfied itself that the services it intended to provide were within its licence and further.

The regulator said the company was already interconnected with other operators and no issues nor concerns had arisen.

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