Safaricom had sought to cancel the contract on allegations that Iristel Kenya will engage in SIM boxing which is a threat to national security. SIM boxing is a malpractice where service providers terminate international calls disguised as local.
Safaricom has lost its bid to stop a Canadian-owned telecoms firm from offering internet-based calls through its network. After the Communications and Multimedia Appeals Tribunal struck out a case where Safaricom sought to terminate a contract it signed with Iristel Kenya Limited, a subsidiary of Iristel Canada. “It is, therefore, our (tribunal) unanimous finding that the appeal lacks merit and the same stands dismissed.
Safaricom filed the appeal at the tribunal after raising its concerns with the Communications Authority of Kenya (CA). But the CA rejected Safaricom’s arguments, saying Iristel Kenya’s similar deals with Safaricom’s rivals had not attracted concerns. The regulator added that Safaricom’s move was unfair.
The CA banned SIM boxing three years ago after Safaricom accused US firm, Geonet Communications Limited, of illegally terminating international voice traffic on its network.
The regulator then ordered Safaricom to start and conclude interconnection negotiations with Iristel Kenya within six months from April last year. Safaricom complied but went to the tribunal.
