Airtel arm signs merger pact with Telkom Kenya.

Bharti Airtel recently said that its subsidiary, Airtel Networks Kenya (Airtel Kenya), has signed an agreement with Telkom Kenya for merging the mobile, enterprise and carrier services businesses of both the companies. The merged entity will operate as ‘Airtel-Telkom’ in the Kenyan market.

The finalisation and closure of the transaction are subject to approval by the relevant authorities. The new entity will become a strong number two operator in terms of both revenues and subscribers. Airtel Kenya is currently No.2 operator in the country.

The Kenyan telecom market is right now led by Safaricom, which has a market share of 65 per cent.

“As per the agreement, both the partners will combine their operations in Kenya and establish an entity with enhanced scale, operational efficiency and strategic brand presence,” Airtel said in a statement.

The entity will invest in networks to further accelerate rollout of future technologies. The company, however, did not disclose any investment amount. “The Enterprise and Carrier Services businesses should benefit from a larger fibre footprint and an increased number of enterprise customers — including both large corporations and SMEs — who would have access to a diverse portfolio of world-class solutions,” the company said.

The agreement will provide Airtel Kenya the advantage and access to Telkom Kenya’s Enterprise and Carrier Services businesses.

According to sources, the combined entity would have over 31 per cent market share. As of end September, Airtel Kenya’s voice and mobile data market shares were at 33 per cent and 22 per cent, respectively.

HBL