Equity Banks Mobile Virtual Network Operator to be rolled out in July has elevated temperatures in the telecommunications sector attracting different sensations from the public as well as bodies concerned since exposition. The Consumer Federation of Kenya (cofek) has however come out to block the award of licence to the MVNOs.
Zioncell Kenya Limited and Mobile Pay Limited will also feel the heat in the case filed against their licence issuance. Finserve Equity Bank’s subsidiary has however played out as the most pronounced in the market considering the structure of business released not so long ago. The mobile money sector seemed to suffer the most with the company giving consumers more than they bargained for. Cheaper transaction fees, cheaper rates for calls, easy transactions across networks are just but a few of the consumer benefits that come with its roll out.
Cofek has come out to say how it feels about the introduction of MVNOs in the mobile sector. The Communications Authority of Kenya breached section 78 of Kenya Information and Communication Act requires it to give 30 days’ notice prior to licensing, within which anyone can make objection. The licences where given without stakeholders’ input and public consultation.
The matter has been certified as urgent by Justice Mumbi Ngugi and it is to be mentioned on June 26. This keeps happening when Kenyans think finally here comes change. The controversial security gadget installation is another example of a backfired project with claims that the office of the president is not a procurement office and should therefore not have the money released before proper scrutiny by the responsible bodies.
Maybe this is a sigh for Safaricom that was obviously going to face stiff competition. However, we should not think this is the end of Equity’s big dreams for Kenyans either.