yu changes tack and requests 3G licence

18 Jun 2013

Essar Telecom Kenya, which operates under the ‘yu’ brand name, has confirmed that – contrary to previous indications – it will invest in a 3G network in order to attract new subscribers. The firm had previously said it would skip 3G and instead move to 4G Long Term Evolution (LTE) technology, but CEO Madhur Taneja has now revealed to Business Daily Africa that it has applied for a USD25 million data concession from the Communications Commission of Kenya (CCK).

The development comes at a time when the Indian-backed operator has engaged BNP Paribas to lead the search for a strategic investor to inject cash to help finance its expansion and stave off a liquidity crisis. Essar hopes to have a strategic investor in place by September this year.

Kenya, Essar Telecom Kenya (yu)