Sim manufacturer wades into Safaricom, Equity tiff

A Taiwan-based company that manufactures Thin SIM Taisys Technologies Ltd termed the fight between Safaricom and Equity Bank over the new Thin SIM technology as unfounded.

The firm, which is behind the technology, insists that the Thin SIM is not intended to disrupt or interfere with functions of the primary SIM card and therefore, does not have the relevant software and functionality to upset mobile functions.

The Thin SIM, which Equity Bank intends to introduce through its subsidiary, Finserve operates largely through superimposition on the existing SIM card.

Safaricom wrote to the Communications Authority of Kenya (CAK) about three weeks ago asking that the bank be compelled to take a full risk review of the Thin SIM to address exposures.

Equity hit back saying Finserve’s services “....are targeted at poor people who cannot afford the luxury of a duo-SIM mobile phone, but needed to have access to at least two lines for various needs.”

Taisys waded into the debate saying the Thin SIM works independently as a second smartcard without interfering with the traditional SIM in any way. “The subscriber must select which SIM to use (the Thin or the traditional one) and only one SIM (the Thin or the traditional one) can be active at any one time. Please note that the two SIM cards do not talk to each other,”wrote the company in an e-mail.

In particular, the firm added, subscribers would use Finserve’s network to access Finserve services and will only be able to receive calls to the current active number.

But in its letter to CAK, Safaricom states thus: “Any use of Thin SIM product should be with the express concurrence of the operator of the primary SIM card to avoid such potential infringement of Intellectual Property Rights. The concurrence of the operator will also ensure that security protocols are in place to safeguard the information on the SIM card.”

The Taiwan manufacturer of the Thin SIM says it has a joint venture in China with the International Finance Corporation (the investment arm of the World Bank) to distribute the technology being contested in Kenya to banks.

“The Thin SIM technology is actually not new. In fact it had its first commercial deployment in 2006. Taisys has made commercial deployments in various countries such as United Kingdom, United States of America, China, Singapore, Denmark, Taiwan, Vietnam,” said the company.

The Taiwanese firm, which says it has been a member of the GSMA-the association that represents the interests of mobile operators worldwide, has explained that the technology "complies fully" with the European Telecommunications Standards Institute, which produces globally-applicable standards for Information and Communications Technologies (ICT).

The GSMA had not responded to our questions by the time of going to press. The Thin SIM can work alongside all four mobile operators in Kenya-Airtel, Safaricom, yuMobile and Orange and its fate now lies with the regulator who has promised to issue a response to Safaricom’s response this week. The SIM-cards in question are a new revolutionary technology that will allow users to embed them onto other SIM cards.