Telecoms Regulation

Kenya: Safaricom Scores Notable Win From Airtel, Telkom Merger Approval

Safaricom has scored a sizeable win from the Competition Authority of Kenya (CAK)’s recent conditional approval of the proposed Telkom-Airtel merger.

This comes after last week Friday’s approval by the regulator came with conditions that were in line with Safaricom’s own expectations of the approval process.

The central point of CAK’s authorization is the barring of the soon to be amalgamated entity- Airtel Telkom from getting involved in any other sale transactions over the next five years but only to assist a potentially distressed peer operator that is also under the Communication Authority of Kenya (CA) guide book.

The condition ultimately blocks the merged entity from delving into any further market consolidation efforts to primarily see Safaricom holding on to its market leader position in Kenya.

Further to the conditions, Telkom has been instructed to hand over its 900 megahertz (MHz) and 1800MHz frequencies back to the government upon the expiry of its license term.

The two telcos are expected to also honour all their existing contractual terms with government entities even though the CAK expects them to miss out on any preferential treatment in their access to shared telecoms infrastructure.
 

Credit: This article originated from www.citizentv.co.ke

 





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