Econet fails to stop new rival By Judy Ogutu ECONET Wireless Kenya Limited has lost an attempt to block Communications Commission of Kenya (CCK) from issuing Vtel Consortium with a Second National Operator licence. The company had gone to court last December, asking for an injunction restraining CCK from issuing the licence to Vtel that won the SNO bid last October. Vtel won the bid at $169 million (about Sh11.8 billion). On Wednesday, High Court Judge, Justice Alnashir Visram said granting "would cause considerable harm to CCK, the Kenyan economy, consumer and people of Kenya." He added: "We would possibly lose $169m in immediate revenue from Vtel, we would send a dangerous signal to future investors that we do not believe in market economy and the freedom to make investment decisions without being stunted and stifled, and we would deny the Kenyan consumer the opportunity to benefit from competition in a free market economy." Econet had rushed to court saying CCK's intended to issue Vtel with the license this month. In its application, Econet argued that despite being licensed by CCK as the third mobile phone operator in October 2003, it had not been provided with frequencies to enable it roll out its network. Through lawyer Mr Paul Ogunde, Econet accused CCK of preventing it from entering the market. Ogunde told Justice Visram that it was unjust to have Vtel licensed. The company said it would continue to suffer huge losses because of CCK's unwillingness to provide it the means to enter the market, while at the same time issuing a license to another operator to do the same business. But CCK's lawyer, Prof Githu Muigai defended the commission, saying Econet had been unable to meet requirements for the award of the licence to operate as the third mobile service provider. Muigai argued Econet had not participated in the tender for the issue of the SNO licence and, therefore, had no locus standi. The judge ruled Econet's argument was not tenable in law. "Econet did not even bid for that licence. It is a total stranger to it, and whether it has the locus or ability to attack another person's successful bid is a huge question mark." The Judge said it was not fair for the company to ask CCK not to deal with any other party instead of demanding specific performance of its contract.