Scope of the Report:
Kenya’s mobile market to be transformed with Airtel/Telkom merger
Kenya’s telecommunications market continues to undergo considerable changes in the wake of increased competition, improved international connectivity, and rapid developments in the mobile market. The landing of four fibre-optic international submarine cables in recent years dramatically reduced the cost of phone calls and internet access, allowing internet services to be affordable to a far greater proportion of the population. In parallel, the sector’s regulator has reduced interconnection tariffs and implemented a range of regulations aimed at developing further competition.
The incumbent fixed-line telco has struggled to make headway in this market, prompting reorganisation in 2018 which included a sale and leaseback arrangement with its mobile tower portfolio. In early 2019 the company signed a merger agreement with Airtel Kenya in which Telkom will retain a 49% share in the merged business which will provide a greater challenge to the market dominance of Safaricom.
Numerous competitors are rolling out national and metropolitan fibre backbone networks and wireless access networks to deliver services to population centres across the country. Several fibre infrastructure sharing agreements have been forged, and as a result the number of fibre broadband connections increased 94% in the year to September 2018.
Telkom Kenya agrees to merger with Airtel Kenya;
Kenya sees a 41% increase in international bandwidth in the year to September 2018;
Universal Service Fund extends mobile coverage to underserved northern regions;
Safaricom launches M-PESA Global payment service;
Government proposes increase in m-money transfer tax;
Regulator introduces a new system to measure QoS parameters;
M-money interoperability starts;
Report update includes the regulator’s market data to September 2018, operator data to Q3 2018, recent market developments.
Companies mentioned in this report:
Telkom Kenya, Jamii Telecom, Access Kenya (Dimension Data), Kenya Power and Lighting Company (KPLC), Kenya Pipeline Corporation (KPC), Wananchi, Safaricom, Bharti Airtel, MTN, Liquid Telecom, Essar Telkom Kenya, Mobile Pay (Tangaza Pesa), Zioncell Kenya, Finserve Africa (Equitel), Kenya Data Networks (KDN), Jamii Telecom, SimbaNet, Africa Online, Access Kenya (Dimension Data), Wananchi Online, Swift Global, Internet Solutions Kenya (InterConnect), Gilat Satellite Networks, Afsat Communications, Inmarsat, Indigo Telecom (Thuraya), Nation TV (NTV)
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Major Key Points in Table of Content:
Overview of Kenya’s telecom market
Kenya Communications Act 1998
Market Structure 2004
Kenya Communications Amendment Act 2009
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