FEATURED STORY

Telkom Kenya sells its towers to American firm

Share
Share

Telkom Kenya (TKL) today announced it had reached a deal for American Tower Corporation (ATC) to acquire up to 723 towers from TKL in Kenya.  Telkom Kenya’s Board Chair, Eddy Njoroge stated that TKL said the deal will enhance the quality and reliability of its  network to the benefit of  customers .

“We are delighted to have signed the agreement with ATC and look forward to a close collaboration between the two companies,” said Mr Njoroge. “The Board of TKL has made it clear that our objective is to transform Telkom into a business which has a reputation for excellence in terms of the quality and reliability of its network. This agreement, in which we will be partnering with a leading global tower company, will enhance the quality and reliability of our network to the benefit of our customers.”

Mr William H. Hess, ATC President of EMEA and Latin America stated said they are excited to launch  operations in Kenya through through the agreement to acquire TKL’s towers.  This represents American Tower’s 17th market globally, and its  fifth in Africa.

READ: NEW MODEL GIVES TV VIEWERS OPTION TO PAY ONLY FOR WHAT THEY VIEW

“And we look forward to helping expand the reach of mobile broadband throughout the country. Kenya is a very attractive market, and we have high expectations for its long-term growth potential,” said Mr Hess.

Telkom Kenya CEO Aldo Mareuse said the network availability and service levels Telkom has agreed with ATC are world class. “This agreement represents another important step towards the transformation of this business and the service levels we deliver to our customers,” he said.

Mr Mereuse said Telkom will now focus on its core function of providing  quality telecommunications services to  customers.

In addition, the sale will release capital for further investment in its  4G network and a number of state of the art IT platforms, he  added, to further enhance services for its customers, who are demanding higher quality and speed from Telkom mobile data networks as well as a richer range of services.

The transaction is expected to close in the second half of 2018, subject to customary closing conditions and regulatory approval.

SEE: DIGITAL PLATFORM OFFERS BARGAINS IN FOREX TRADING

Telkom Kenya’s five-year strategy includes investing Ksh15.2 billion ($150 million) in its 3G and 4G networks as well as mobile financial services and customer experience. Private equity firm, Helios, bought into Telkom Kenya in 2016, saying it intended to rescue the ailing company through heavy investments and an overhaul of management.

Telkom Kenya says  it has already invested about Ksh5.6 billion in expanding and modernising its network, including launching 4G services. The company is also set to receive a Ksh4.1 billion ($40 million) loan from the European Investment Bank to boost infrastructure and mobile money network.

NEXT: TOP 100 COMPANIES TO WORK FOR IN KENYA

Written by
BT Correspondent -

editor [at] businesstoday.co.ke

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow Us

Related Articles
2024 SkyTeam Aviation Challenge
FEATURED STORY

Kenya Airways Shortlisted for 2024 SkyTeam Aviation Challenge

Kenya Airways (KQ) is the only African airline that has been shortlisted...

Affordable Housing Project
FEATURED STORY

Govt Puts Up For Sale 4,888 Affordable Housing Units: Here’s The Full List And How To Buy

The government has put up for sale 4,888 affordable housing units across...

Geraldine Sande, Channel Sales Leader for Schneider Electric East Africa
FEATURED STORY

How Working With ‘Glocal’ Original Equipment Manufacturers Can Empower East Africa’s Channel Partners For Success

Channel partners in East Africa, including resellers, distributors, system integrators and panel...

Treasury CS John Mbadi
FEATURED STORY

Understanding Tax Amendment Bills: How The New Laws Will Affect Kenyans

The government has announced several amendments to the existing tax laws to...