The Communication Commission of Kenya (CCK) is concerned that Vtel might cancel the transaction if they are denied the license, lawyer Githu Muigai told High Court Judge Justice Alnashir Visram. The amount Vtel is paying CCK in license fees will be the single largest foreign direct investment in Kenyan history, Muigai said. The consortium planned to pay the fee this week, Muigai said.

Econet Wireless is attempting to block CCK from awarding the license to Vtel pending the hearing and determination of a court case. Earlier, the Court had ordered the CCK not to issue the license until the hearing of the application. Justice Visram has extended these orders until January 17, when he will deliver his ruling on the case.

Econet contends that awarding the license to Vtel would render useless an appeal it has lodged with Kenya Communications Appeals Tribunal. In that appeal, Econet has asked the Tribunal to set aside the award to Vtel. Econet says the award allows Vtel to roll out a mobile network alongside provision of other telecommunications services. Econet said that despite being licensed as Kenya’s third mobile operator, the CCK has been preventing them from rolling out their network.

Muigai said that since Econet won the tender to operate as third mobile operator, it has been unable to meet the requirements for the award of a license. The CCK therefore cannot allow Econet to begin offering services.

Source: The East African Standard - WDR/Intelecon Regulatory News