Telkom to gain mobile concession

8 Aug 2007

The Kenyan government has revealed that it will offer a mobile concession to sweeten the sale of a majority stake in fixed line operator Telkom Kenya. The licence offered to Telkom will be the country’s fourth national mobile concession; Safaricom and Celtel are currently the only active players, with the other licensee, Econet Wireless, still to resolve long-running ownership issues before it can launch a commercial service. Telkom must pay a licence fee of KES3.9 billion (USD55 million), equivalent to the fee paid by both Safaricom and Celtel. Six companies are vying for the 51% majority stake in Telkom: France Telecom, BT, Telkom South Africa, Tata/VSNL, Reliance and Alkazar. The licence is due to be issued by the end of November, reports Nairobi’s Business Daily.