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Airtel Kenya lauds the licensing of MVNOs

Kenya , 03 Jun 2014

Airtel Kenya lauds the licensing of MVNOs

Airtel Kenya has become the first telco in the country to welcome the government’s move to license three Mobile Virtual Network Operators (MVNO), in what the company’s director termed as “leveling of the competition ground”.

Speaking in Eldoret town on Monday while launching their first store in the town, Airtel Kenya managing director Adil El Youssetta said, “Kenyans are hungry for choice. The move will not only provide a chance to compete on equal grounds but also allow for innovation.”

The Communication Authority of Kenya (CAK) licensed three firms: Zioncell, Tangaza Pesa and Fincell (owned by Equity Bank), to provide Mobile Virtual Networks in the country, without necessarily building their own infrastructure.

This implied that these companies would ride on the existing network infrastructure currently owned by established telcos in the country in providing their services.

Airtel’s announcement comes a few days after Equity bank announced that it was already finalising plans to launch their virtual network in partnership with Airtel Kenya. The bank will use Airtel’s 60% excess capacity to provide a seamless end to end service to any bank and any telco.

Speaking to ITWebAfrica, Stephen Kamau, a virtual network specialist at Onsite Technologies said that Airtel had more to gain than lose in the licensing of the three MVNOs.

“For a long time, Airtel has tried using all possible avenues in leveling the playfield when it comes to mobile money services in the country, without success,” Kamau told ITWebAfrica.

“They have however discovered the potential to grow by partnering with the MVNO firms in the country, and that is why we saw them become the first telco to offer their excess capacity to Equity bank for the provision of the service.”

“It will be interesting to see whether or not the other leading players in the mobile money sphere agree to share their infrastructure with these MVNOs, whom from the start, they labeled them as direct competitors,” added Kamau.

Kamau concluded by saying that if mobile companies looked at MVNOs as partners in extending their customer reach, and not necessarily competitors, Kenya will not only witness a growth in the mobile services sector, but will also allow for innovation, with all the partners specialising in providing services within their strong points, and letting the others take charge of what they are not able to provide.

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