The Communication Authority yesterday denied it awarded a frequency licence on security and emergency services to Tetra Radio.
CA, in a case it filed in the Court of Appeal, said Tetra did not fulfill conditions that would lead it to being given the Sh452 million licence.
The company, which claims to have won the tender in 2002, has sued the government to pay it Sh1.3 billion for alleged breach of contract.
Safaricom was awarded the Sh15 billion security solution for the police in Nairobi.
Judges John Mwera, Erastus Gihinji and Festus Azangalala, the regulator said Tetra only paid Sh10,000 to participate in tendering.
The ruling will be delivered on November 6.