Incumbent telco Telkom is entangled in a dispute over an alleged Sh9.1 million in unpaid fees with one of its ISP clients. Telkom Kenya sued Gateway Online for failing to pay for telecommunications services rendered by its Internet gateway service, Jambonet, last year.

Telkom, in a plaint filed by Kiptui Mbabu Advocates at the Milimani Courts, alleged that the Internet Service Provider had on several occasions admitted owing the money and made various proposals to pay, but in vain.

In a defence and counter-claim filed by Mr Omolo, Gateway has denied owing the sum to Telkom. It argued that the terms and conditions of services contained a ‘Penalty Clause", and that the access fee levied after disconnection of services was unreasonable and economically oppressive.

It claimed that the clause did not reflect loss arising from disconnection of service by the state monopoly and that it should be struck down as it was never agreed upon by the parties.

Gateway alleged that Telkom was guilty of wrongdoing and for abusing its monopoly by failing to consider payment proposals it submitted. Gateway has admitted having established a business goodwill with the service provider. It has, however, alleged that Telkom never gave it adequate notice to raise the amount being claimed and unreasonably refused to accept its proposals. The ISP claimed that on April 24, Telkom disconnected its link to Jambonet.

Lawyer Mbabu for Telkom said the ISP never honoured any of its proposals. She denied all contents in the counter-claim and said that if Gateway lost business good will, it was as a result of its failure to pay for the telecommunication services. The state firm said the reliefs sought by the ISP could not be granted and wants both the defence and counterclaim struck off. The case was djourned to a date to be fixed at the registry.

The Nation