Telkom bets on data as it takes solo path following collapse of Airtel merger


Telkom bets on data as it takes solo path following collapse of Airtel merger
Telkom Kenya CEO Mugo Kibati PHOTO | COURTESY

In Summary

  • Telkom says it will bridge the consumer’s digital divide through the expansion of its 4G/LTE network which recently received boost from its partnership with Google Loon.
  • The operator mutually agreed to terminate its planned merger with Airtel on August 5 after opting for a different strategic direction.
  • Telkom is Kenya’s third largest operator by customer base commanding an estimated 3.2 million subscriptions as per regulator data at the end of March 2020.

Telkom Kenya now says it will focus on investments in data and financial services as it takes a solo path following the collapse of its merger with Airtel.

The operator is keen on leveraging its infrastructure base and services to drive digital transformation within its offering.

Telkom says it will bridge the consumer’s digital divide through the expansion of its 4G/LTE network which recently received boost from its partnership with Google Loon.

The operator has restructured its business to reflect the new strategic direction including a revamp on its service delivery units.

Previous mobile and enterprise divisions will be collapsed to Telkom Consumer and Telkom Digital under the stewardship of Steve Okeyo and Kris Senanu respectively.

Its carrier unit will meanwhile be merged into Telkom Digital wholesale and cloud segment under the stewardship of Kebaso Mokogi.

“This business restructuring will enable Telkom to sharpen its efficiencies, with respect to service provision and overall customer experience. It will also enable us to partner more strategically with like-minded entities, for example, in the telecommunications, technology and financial services sectors,” said Telkom CEO Mugo Kibati.

“The end game is to be the technology partner of choice to our consumers, private and public sector clients.”

Telkom is further expected to enhance its partnerships with developers as it seeks to digitize product and customer service channels.

The operator mutually agreed to terminate its planned merger with Airtel on August 5 after opting for a different strategic direction.

The cut in ties followed a length delay to the planned consolidation of businesses. The operator is subsequently expected to keep its full count of staff nullifying an earlier planned redundancy of 375 employees

Telkom is Kenya’s third largest operator by customer base commanding an estimated 3.2 million subscriptions as per regulator data at the end of March 2020.

The operator was established in 1999 and its majority owned by the Helios Investment Partners with the government holding the remaining stake.

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Story By Kepha Muiruri
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