Proposed Airtel-Telkom Merger Collapses

Telkom will no longer be pursuing the proposed merger with Airtel, Telkom Chief Executive Mugo Kibati said on Wednesday.

In a statement to newsrooms, Kibati said that the company has opted to take another direction after being put off by red tape while seeking approvals from regulators needed to complete the deal.

“Following the announcement on February 8, 2019, of the intended merger of Telkom Kenya’s mobile, enterprise and carrier businesses with Airtel Networks Kenya Limited, the company has been pursuing the various approvals required to complete the transaction,” Kibati said in a statement.

“Considering the challenges experienced in getting all the approvals required to complete the transaction, the company has simultaneously been evaluating alternative strategic options to strengthen its position and offering, within the market, as a genuine alternative for the consumer, enabling us to entrench our current brand as Kenya’s preferred data network service provider.,” he stated.

“After carefully reviewing the available options, Telkom has opted to adopt an alternative strategic direction and will no longer be pursuing the proposed joint venture transaction with Airtel Networks Kenya Limited. Our confidence in the new direction is further bolstered by the accelerated digital transformation brought about by the recent dynamics of the COVID-19 pandemic,” he added.

Telkom has now withdrawn the Notice of Redundancy issued by the Company on July 31, 2019 meaning that the company’s employees earmarked for the sack due the merger get to keep their jobs.

 “The transformation dynamic also presents Telkom with a strategic advantage, to better position its infrastructure asset base and services, to support this digitization and, in the mid to long term, bridge the consumer digital divide; connecting the unconnected by way of cutting-edge technologies such as Loon,” stated Kibati.  

This comes as a blow to the two companies that had floated the idea as the best plan to take on Safaricom, the dominant player in the market.

Data posted by the Communications Authority of Kenya (CA) shows that Safaricom enjoys market share of 64.8 percent, Airtel 26.6% and Telkom 5.8%.

Airtel and Telkom have previously complained about the conditions imposed by the Competition Authority of Kenya(CAK) for the completion of the merger.

However, the Competition Tribunal in May reversed some of the punitive measures imposed by CAK leading to the hope that the merger was now a formality.

The tribunal allowed Airtel and Telkom to keep their existing network licenses in reference to a condition imposed by the Competition Authority of Kenya (CAK) that barred the two units as a merged entity from selling or transferring some of their operating and frequency spectrum licenses until the merger duration expired.

In its ruling, the tribunal observed that several conditions did not augur well for healthy competition in the telco business hence putting Airtel and Telkom in good stead to see through their merger.

See Also>>>> Telkom Says Balloon Internet Ready For Consumption

Latest

Lupita’s Little Brother Junior Nyong’o Charting His Own Path in Acting

Junior Nyongó, who is also a musician and a DJ and now a graduate of UC San Diego with an MFA in Acting, is crafting his own solid path in the world of acting with roles in major theatre productions.

Why the Arts and Culture are Key Segments of Kenya’s Economy

The Kenyan creative sector, which comprises remarkably diverse forms...

KBL Gives Maasai Name to First Brand at New Sh1.2B Microbrewery

The new microbrewery in Ruaraka is aimed at helping the business to extend KBL innovation capability and to meet consumers’ changing tastes and preferences.

Hardware Owner Makes Sh27 Million in Six Hours After Investing Sh99

In a festive season filled with joy and surprises, SportPesa has unveiled its newest millionaire, Esbon Macharia, who won a cool Ksh27,041,645 Midweek Jackpot.

Follow Us

Newsletter

Don't miss

Lupita’s Little Brother Junior Nyong’o Charting His Own Path in Acting

Junior Nyongó, who is also a musician and a DJ and now a graduate of UC San Diego with an MFA in Acting, is crafting his own solid path in the world of acting with roles in major theatre productions.

Safaricom To Power Tusker OktobaFest Beer Festival

Safaricom’s involvement in OktobaFest as a technology and payments partner will focus on fostering seamless in-festival connectivity, empowering the youth and Gen Z community through Safaricom Hook, and powering digital payments through M-PESA.

Music Producers Launch Organization To Streamline Recording Industry

Recording Industry of Kenya (RIKE) was launched on 9th October 2023. Registered in 2022 as a not-for-profit organization, RIKE aims to promote the collective interests of producers of sound recordings in the country.

Nairobi’s Hero Bar Listed Among World’s 50 Best Bars

World Best Bars: Hero Bar in Nairobi continues to climb the list, moving up six places to No.62 and Johannesburg’s Sin + Tax comes in at No.94. Dubai new entry Ergo is at No.69 and Melbourne’s Byrdi has re-entered the list at No.61.

Kenyan DJs Face Off In Smirnoff Battle Of The Beats Season 3

The Smirnoff Battle of the Beats Season 3, a DJ competition, is poised to unleash an unprecedented musical frenzy countrywide.

The Highs And Lows Of Betty Kyallo, Sisters Show As Season 2 Ends

Kyallo Kulture has always been, above all, about sisterhood, and in Season 2 we have witnessed the charm of it - the ups that gave us wholesome moments as the sisters led by Betty Kyallo spent time together.

DStv Beats CNN, BBC To Become Most Admired Media Outlet In Africa

DStv, MultiChoice Group’s leading broadcast service, has been named...

MultiChoice Revises Subscription Fees For DStv, GOtv

MultiChoice has announced price adjustments on some of their...

Octopizzo: How I Make My Money

"I've been doing this for 12, 13 years. It reaches a point where you no longer need to prove that you can make a hit record," he stated.

New Spotify EQUAL Artist Qing Madi Talks Music and Dreams

Heavily influenced by her cultural background and the lyrical arrangements of Kendrick Lamar, the versatile Nigerian prodigy is shaping the future of music with her unique genre-bending fusion of Afrobeats, Pop, Soul and R&B.

Lupita’s Little Brother Junior Nyong’o Charting His Own Path in Acting

Junior Nyongó, who is also a musician and a DJ and now a graduate of UC San Diego with an MFA in Acting, is crafting his own solid path in the world of acting with roles in major theatre productions.

Why the Arts and Culture are Key Segments of Kenya’s Economy

The Kenyan creative sector, which comprises remarkably diverse forms of arts and cultural productions like films, commercials, online content, and other audio-visual works and...

KBL Gives Maasai Name to First Brand at New Sh1.2B Microbrewery

The new microbrewery in Ruaraka is aimed at helping the business to extend KBL innovation capability and to meet consumers’ changing tastes and preferences.

LEAVE A REPLY

Please enter your comment!
Please enter your name here