Another firm opts for use of thin SIM card

What you need to know:

  • Tangaza was licensed in May by the Communications Authority of Kenya to operate as MVNO on Airtel’s network alongside Equity’s Finserve and Zioncell.
  • It has begun its roll-out by recruiting money transfer agents countrywide. It has also been licensed by the Central Bank of Kenya (CBK) to provide cashless fare services to consumers.

Tangaza Pesa plans to roll out its mobile phone services using thin SIM card despite hitches facing Equity Bank over the technology.

The company, which was granted a mobile virtual network operator licence, told the Nation that a consumer survey revealed most of those in its target market do not want to buy new phones.

“This leaves us with no option but to use thin SIM card, which sits on a parent SIM,” Tangaza Pesa chief executive Oscar Ikinu said.

Asked about the ongoing legal and technological debate, he said noted; “The law does not deny us access to services; this will not be a challenge despite the highly debated thin SIM issue.”

LICENSED IN MAY

Tangaza was licensed in May by the Communications Authority of Kenya to operate as MVNO on Airtel’s network alongside Equity’s Finserve and Zioncell.

It has begun its roll-out by recruiting money transfer agents countrywide. It has also been licensed by the Central Bank of Kenya (CBK) to provide cashless fare services to consumers.

On Monday, the Communication Authority and CBK gave the nod to Equity Bank to roll out mobile money services using the thin-SIM card technology on a one-year pilot basis.

During the period, no other operator will be allowed to use the technology to enable the regulator to study the technology’s security features.

This means that Tangaza Pesa will have to cool its heels for a year before it rolls out its thin SIM services. The Communications Authority has demanded that Equity Bank signs that it will compensate the regulator for any liabilities arising from fraudulent use of the thin SIM cards.

“This is important to ascertain that they are not hiding anything and they have taken security measures against any eventualities of fraud,” Communications Authority director-general Francis Wangusi told the Nation by phone.