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Call Company GeoNet Loses Legal Battle with Safaricom

Enterprise Team

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In a long-running dispute over interconnection with Safaricom, long-distance telecommunications service provider GeoNet Communications lost an attempt to overturn a decision by the Multimedia Appeals Tribunal dismissing its case.

Justice David Majanja dismissed the application by the company saying it was trying to re-argue and re-litigate its appeal, “in the hope that the court would reach a different factual and legal position.”

The company, a US-based subsidiary of GeoNet Communications Group, filed a complaint with the High Court accusing the Communications Authority of Kenya (CA) of encouraging anti-competitive behavior by declining to step in to resolve its interconnection issue with Safaricom and Telkom.

The company argued that it proceeded on an improper explanation of the law, misinterpreted the subject rules, and consequently drew incorrect conclusions after the firm’s appeal before the Tribunal was dismissed last year. This forced the company to rush to the High Court.

Geonet argued in the appeal that the Tribunal was improperly constituted when it made the ruling because it lacked the necessary technical knowledge.

The company claimed that because a technical expert in telecommunications was not present when the judgment was written, the decision was made without the technical know-how and competence required to evaluate its technology.

The CA and Tribunal found the corporation guilty of SIM Boxing notwithstanding the company’s claims that it now does not use actual SIM Cards.

GeoNet claims that instead of using calling cards, it makes use of a mobile application called “GeoSafari App” that uses Voice over Internet Protocol (VoIP) and the Session Initiation Protocol (SIP) manner of call handling.

The company claims that because GeoSafari App does not use any SIM Cards, it is irrational to accuse them of SIM Boxing—a practice that by definition calls for actual SIM Cards.

Additionally, the company claims that after going through the requisite screening and approval processes to receive licenses for telecommunications services in Kenya, it had a reasonable expectation that CA would not deem the same technology to be illegal.

The company said that the app is a cutting-edge, effective, and affordable solution to offer Kenyan consumers services, allowing them to reduce expenditures (particularly roaming costs) and save money.

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