Telkom to get cellular licence

1 Oct 2007

Telkom Kenya is being offered a nationwide wireless licence to complement its fixed line concession. Earlier this year the firm launched a CDMA-based fixed wireless service which it said was to extend the reach of its wireline network, but the country’s two mobile operators – Safaricom and Celtel – complained that the new network was actually competing against their GSM systems and that Telkom should therefore pay a cellular licence fee. Telkom will pay KES3.9 billion (USD57 million) for the concession, equalling the fees paid by Safaricom and Celtel. A 51% stake in Telkom is being sold by the Kenyan government and the new strategic investor will be required to pay for the cellular licence on top of the KES5.6 billion price for the majority stake.