Essar settles dispute with KDN

30 May 2013

Kenya mobile operator Essar Telecom has agreed to pay Kenya Data Networks (KDN) KES46 million (USD531,000), ending a court dispute between the two companies over unpaid fees for backhaul transmission services, Business Daily reports. Essar, which operates locally as Yu, also agreed to continue paying KES18,900 per month for interconnection services offered by KDN. As previously reported by CommsUpdate, KDN began litigation against Essar over KES133 million in unpaid backhaul transmission fees in May 2011, threatening to cut off the Indian-owned cellco’s connectivity should it continue its non-payment. The following September Essar consented to clear the KES25 million debt incurred for services between May and August that year, and agreed to continue to pay KES6.2 million a month while an independent arbitrator investigated the case, provided that the Nairobi-based wholesaler did not interfere with its connectivity.