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Thursday, September 22, 2011

Oceanic oils raided for illegal telecoms activity

It turns out, that the Safaricom/CCK/Orange sting operation was targeted at an illegal Gateways services provider. The culprit can now be identified as Oceanic Oils of Jubilee House, CBD. Equipment was confiscated from the premises where Oceanic is accused of  setting up intelligent SIM servers in the name of GSM Gateways or simply put Gateways. These Gateways have the capacity to transit and terminate international minutes to any telecom network. In the industry, these servers have also been referred to SIM boxes.

The providers of these boxes are now providing very advanced features such as SIM Allocation and SIM Protection. The boxes also include SIM cards storage capacity with capability to store up to 416 SIM cards which can be increased to about 496 SIMs. They do not discriminate on prepaid or postpaid SIM cards, since the boxes can select the most appropriate SIM card according to how it has been programmed such as credit availability, type of service, country, and operator targeted for termination.

To perform this business; one needs a Gateway Licence from CCK. In this case of raid, Oceanic Oil has been terminating international traffic without the requisite licence from CCK. This action contravenes the regulations.

The motivation of this activity is to avoid paying the licence fee to the commission hence denying the commission its rightful licence fees. Besides the licence fees, the government also loses tax money that they would have otherwise collected from the operators. Besides these losses, the quality of these calls terminated are of poor quality this affecting quality of service provided by the operators.

Pictures of the raid will be uploaded soon.

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