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Safaricom loses bid to block Equity's thin-SIM technology [Nation (Kenya)](Nation (Kenya) Via Acquire Media NewsEdge) Safaricom has lost the battle battle to block Equity Bank from rolling out mobile money services using thin-SIM card technology as regulators granted approval. The approvals, officially announced on Monday, were given by both Communication Authority of Kenya and Central Bank of Kenya. The two dismissed Safaricom objections against the new card, which will ride on the existing SIM cards, saying that initial investigations show "that no major complaints and particularly on interception of traffic of the primary SIM card has been reported so far." However, to address the concern raised in totality, the rollout is to be done on a one-year pilot basis to give the two regulators opportunities to carry out a detailed study on the technology. In a press briefing on Monday, Communications Authority board chairman Mr Ngene Gituku and CBK governor Mr Njuguna Ndung'u said the pilot will run for a year. "We had a board meeting Friday and agreed that Equity Bank will roll out on a pilot basis, if vulnerabilities are found within the period, its services will be cut," said Mr Gituku. Equity Bank is to rollout the service under its subsidiary Finserve Kenya. Mr Ndung'u said Central Bank wanted to understand the system fully before giving the go ahead. "We do this to encourage prudent behaviour within the market not to shut the market from innovations," Mr Ndungu added. COMPROMISE SECURITY In objecting to the rollout of the service, Safaricom raised concern on the security of the card, saying it could compromise the security of its 19 million money transfer service customers. "Based on the opinion of GSMA, save for the inherent vulnerabilities of all SIM cards, there are no specific and confirmed vulnerabilities arising from the use of the thin SIM," Mr Gituku added. Over the pilot period, only Taisys' thin SIM, proposed by Equity Bank, will be allowed to operate in the Kenyan market. "Regulators decided to allow only Taisys to roll out in Kenya under a pilot, this will help give us in-depth analysis into the technology without exposing the market to many risks," explained CA director general Mr Francis Wangusi. According to Mr Gituku, CA board made the decision following elaborate consultations that ascertained; the technology complies with all minimum mandatory international thin SIM standards, no major complaints on the technology on interception of traffic of primary SIM have been reported. Further, CA said China National Computer Quality Supervising Test Centre and Bank Card Test Centre of China showed that Taisys SIM complies with International Organisation for Standardisation (ISO) and European Telecommunications Standards Institute (ETSI) standards. The Global System for Mobile Association (GSMA) found no specific and confirmed vulnerabilities arising from the use of the thin SIM. CA has therefore begun the process of hiring an internationally reputable firm to conduct a security audit on the thin SIM during the piloting. "The winning firm will find out vulnerabilities of using it and recommend a framework for SIM card use in Kenya." The new thin SIM technology has been the subject of a vicious fight between Equity bank and mobile phone market leader Safaricom. The Energy and Communications Committee, chaired by Mr Jamleck Kamau, early this month (Wednesday 10) ordered CA to seek the board's approval after announcing that Equity should roll out the technology. "This project should not continue until the board has made its decision," said Mr Kamau before the committee. (c) 2014 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info). |