EWI retains third Kenyan cell licence

Johannesburg, 01 Dec 2004

Econet Wireless International (EWI) today claimed that the High Court in Kenya had overturned a decision by that country`s minister of tourism and communications to rescind its licence to become the nation`s third cellular operator.

The third cellular licence was granted several weeks ago to a consortium - Econet Wireless Kenya (EWK) headed by EWI - but was rescinded at the weekend after the Kenyan government cited the fact that EWI`s local partners were unable to raise the money needed to hold shares in the consortium.

According to EWI, the High Court accepted the matter as an urgent application yesterday morning, saying that minister Raphael Tuju had no legal authority to cancel the 15-year licence granted to EWK by the regulator, the Communications Commission of Kenya (CCK).

EWI asked for the matter to be considered urgent as it claimed that the minister`s statement had generated negative perceptions about the company globally, which could affect its operations in a number of countries.

EWI CEO Strive Masiyiwa welcomed the court`s response.

Tuju claimed at the weekend that the third mobile licence would be advertised afresh after the consortium, which was supposed to raise a total of $27 million, had only been able to raise $15 million in time.

"It has become apparent that the local partners are not able to raise the money that will enable them to hold shares that conform with the shareholding requirements as per the government`s policy for the sector," Tuju stated at the weekend.

Following the High Court decision, Masiyiwa said work on the Kenyan concern would hopefully end in March 2005, with an expected launch sometime in June.

"We are looking forward to taking our position alongside our rivals. The equipment will arrive soon and our ringtones will be heard during the course of next year."

While the issue of the third licence continues, it has also been announced that as of next year, Kenyan cellphone subscribers will be able to switch networks and still retain their numbers.

This follows an announcement by the CCK that said it had selected Kenya Network Information Centre to manage the mobile phone numbers database once the mobile number portability services are implemented in July 2005.