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Airtel-Telkom Merger is Critical for the Kenyan Telco Consumer

BY Soko Directory Team · September 3, 2019 02:09 pm

The Airtel- Telkom merger has raised eyebrows with Telkom making it clear that the merger is an effort to improve its internal structure, to improve the sector at large by increasing the rate of competition in the sector which is currently dominated by one Telco

“In a stunted market the sector would grow and this will roll back Kenya’s leading role in technology across the region,” he said.

“The merger will create a vibrant telecommunication industry offering consumers better choices and value for their money,” he added.

Kibati says that the deal is also a good opportunity to revive Telkom Kenya and put it to a recognizable standard and position.

Investigations into the probe that is claimed to involve some Telkom officials are ongoing, but Telkom says the EACC has nothing to do with the suspension of the deal.

“We welcome the current investigations and willing to cooperate with the Ethics and Anti-Corruption Commission. I would also like to state that none of our managers to the best of my knowledge is being investigated,” Kibati said.

However, Telkom has said that the investigations have nothing to do with the planned merger deal.

Telkom had earlier announced that the deal would be sealed by August, but the suspension led the two Telco to push the merger to a later date this year, on a day that is yet to be communicated.

These are the expected advantages of the Airtel-Telkom merger on;

1.The Customer.

For any business venture to be deemed successful, they have to give the customer wants the first priorities to anything else.

The Airtel-Telkom merger is an effort to improve the quality of services offered to the esteemed customers ranging from airtimes, internet provision and other important customer relations.

The Airtel-Telkom merger will also offer consumers credible options and ensure that these consumers get value for their money.

This would be done by offering affordable airtime rates, bundle rates and boosting the network across Kenya and beyond.

A merger will obviously improve the quality of services the computers as the two parties will bring on board a lot. The resources will be combined together and each entity would provide its best to ensure the ‘marriage’ is a success.

The customer will be spoilt for choices.

2.Prices of products and services.

The merger is going to see that the prices of the commodity and services are in line with the quality of services offered.

The consumers should get ready to experience drop in prices and affordable rates when the deal is sealed in the coming days.

3.Competition and dominance

Apparently, Safaricom is the leading telco company which controls two thirds of the market share.

Airtel-Telkom merger seeks to bring a heathy competition to the market leaders, which will in turn improve the quality of products and ensure Kenya is recognized as a leading technology adopter in Africa and beyond.

4.Quality of products and services.

A healthy competition enhances invention and innovation thus making improvement to the existing products and services or even adding a new product or service to the market.

The merger will involve combination of resources and forces which will make it easy for products to improve and be produced.

5.The technological advancements in Kenya

The telecommunication sector is likely to grow through the sealing of the merger. In a stunted market the sector would grow and this will roll back Kenya’s leading role in technology across the region.

 

 

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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