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Telkom protests new mobile licences

   From left: Mobile Pay Ltd director Gichane Muraguri, chairman and CEO Oscar Ikinu and programmes manager Wahome Githumbi show off the Tangaza sim cards during the licensing of mobile virtual network operators. Photo/Diana Ngila
From left: Mobile Pay Ltd director Gichane Muraguri, chairman and CEO Oscar Ikinu and programmes manager Wahome Githumbi show off the Tangaza sim cards during the licensing of mobile virtual network operators. Photo/Diana Ngila 

Telkom Kenya has written to the Communications Authority of Kenya (CAK) seeking to know why the agency licensed three Mobile Virtual Network Operators (MVNOs) in the absence of contractual guidelines. Telkom says the licensees pose unfair competition to operators.

Mickael Ghossein told the Business Daily that lack of rules of engagement and parameters on how the four mobile operators should do the new business has made it difficult to strike deals with the parties that have approached them.

Mr Ghossein said the vacuum may cause inequitable distribution of the said partnerships and market concentration of the MVNOs in a single operator.

A major concern for Mr Ghossein, who sometime back said he would not enter into such partnerships, is that the MVNOs are only charged Sh100,000 as licence fee yet they will offer all services, including voice, data, mobile money transfer services and Short Messaging Services (SMS), automatically making them serious competitors yet they will not have invested as much as the telcos.

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