Airtel Kenya possible Exit


#1

It’s no secret that Airtel as been struggling to stay afloat in the Kenyan market and has been posting losses year in year out

A Bharti Airtel executive recently revealed that they are considering mergers, acquisitions and even exiting some markets in Africa, specifically mentioning Kenya, Rwanda and Tanzania where Airtel hasn’t been performing well

Airtel recently showed interest in acquiring 9mobile, formerly Etisalat Nigeria., a deal that would make it become the largest mobile network in Nigeria slightly ahead of MTN. They are currently competing with another operator called Globacom who are also interested in acquiring 9mobile

Do you think Airtel will exit Kenya and save itself from this misery, or can/will they find a strategic investor to form a merger of some sort?

Below is a link to the article


#2

They need to offer 4G services and stabilize their network. That should stop the customer bleeding while they figure out the rest.


#3

Equitel can move in and take over, they would be a good match for safaricom plus equitel would use the Airtel agents more effectively


#4

This could be an interesting move.


#5

I highly doubt this will ever happen. Its not good for Equity bank. Equity likes the MVNO model because its a variable cost model, no high fixed costs. If Equity/Equitel was to acquire Airtel, it would have to become a “true” telecom i.e give equal focus to the telecom services(voice,data,sms) and mobile money. Right now they really don’t care too much about the telecom services. Why should they,its not their core business.


#6

Waiting to see the next move in case of Airtel’s exit then faiba and orange got me covered


#7

This is why they have never bought the 4g license


#8

Faiba might win. All they need to do is bring the cost of routers down…at least, to take advantage of people who don’t have much to spend on a new phone or router considering that people either have a router/modem they bought or they have a phone and not looking to upgrade or just acquire another one.

Saw some people asking how they can unlock their Telkom routers to use Faiba :joy::joy::joy::joy:


#9

The head of Equitel had sometime back told me they would give much more attention to the Telcom side of things. They have been aggressively pushing Eazzypay for the last few months. The best push for Eazzypay and payments is the SIM card that ensures they capture the mass market that won’t install Android/iOS apps.


#10

They probably don’t want to spend that 2.5b for a fill license to roll out 4G and may leave that for the next owner to implement. They are cash strapped and bleeding.


#11

Telkom should go in for this one… this will be their chance to be a significant player…The owners have the funds…Else MTN might try to enter Kenya


#12

Who wants to buy a product who’s customers stay on for the near free service? Where is the money?


#13

Ohh Nooooo!!! :rage::rage::rage:. Am a staunch Airtel user and this news hurts me big time.


#14

I told myself if they didnt launch 4G by dec id finish my bundles and be done with them, now they’re planing to exit? I need to test that JTL modem ASAP and migrate. Airtel dropped the ball globally. As @deewinc regularly says, free calls won’t connect people to the internet. Jio understands that better than most. As does Halotel.

For a company that talks big about ‘leveraging their big data to understand customers’ safcon is worried they have been unable to change the consumers opinion of them as being thieves. There have never been more mobile phones per person jn Kenya than today and many are just kabambes for mpesa lines. Telkom is getting comfortable (their network is so bad that I end up offline gaming because I can’t work online) so if JTL is serious, they might be the Jio success story of Kenya by Dec 2018


#15

#16

Exactly, Eazzy pay, not the telecom services (voice, data and sms).


#17

Acquisition means exit to me :thinking::thinking::thinking:


#18

I see a merger happening, Airtel badly needs to improve on their infrastructure and considering the issue they have with CA regarding renewal of their license it seems they do not have the capital to do that

Their strength right now seems to be in the already existing partnerships they have, like with Equitel and Liquid Telecom. If they insist that they wont exit Kenya then maybe they should consider mergers along these partnerships, if they haven’t already started. Would be interesting

Am also thinking of a scenario where they merge with Telkom Kenya now that they have a sponsor with some deep pockets, or maybe even Telkom buys them out. Or maybe partner with Faiba 4G Extreme., or now that MTN is in Kenya via MTN Business they might partner with them… possibilities are endless


#19

Then this happened:


But still no concrete affirmations though


#20

same thought here this could be a strategic move