Airtel & Telkom reportedly talking to form a merger


#42

the idea of only two big players in telecoms sickens me bana,a duopoly is just bad for the consumer in the end…Airtel stand to gain with the merger though as they will have access to more resources and assets unfortunately it will make their exit from the kenyan market that much harder…I think the GoK and Helios can emerge winners from this as they can just get a nice tidy exit and the GoK can once and for all dispose one of the last vestiges of KP&TC while making some money from it.


#43

This surely doesn’t apply to the Kenyan market. Safaricom is so large and so profitable that they can afford to go it alone.

On the other hand a theoretical merged Airtel/ Telkom would benefit little from being in a cartel with Safaricom. They wouldn’t be able to compete on pricing or poach customers from Safaricom.

Helios has already won, from the very beginning they were interested in Telkom’s vast properties. The only headaches IMO are the large payroll and the former KPTC staff that are still owed dues.


#44

IMO if Telcos can get proper inter-operability like there is in Banking (you can withdraw your cash from another bank’s ATM without challenges) then they should be okay to operate within their comfort zones and innovate from there, just like small banks do.


#45

Well,there is still a market in telcos i guess…Lets see how long Bharti Airtel Worldwide can absorb Airtel Kenya’s losses before they change tact…


#46

Sometimes i posted here how i was having a hard time using Airtel while at home and after much head scratching i decided to port my number to Telkom.I know telkom network is good at home ,since i have tested the reception.
I managed to visit Telkom Sarit on Saturday (19th January) and filled in the form and paid Ksh 60 to have a sim card.The process was to take 2 business days so by Tuesday i would know the status of the porting.On Monday a Telkom rep called me and instructed me to send a text using the airtel sim ( HAMA to 1501).
I didn’t get a response only for me to call Telkom yesterday and they seems to have contacted the guys who handle porting and i recieved a message indicating PORTING FAILED .
I was furious and called Airtel to check what would possibly be wrong and the rep told me that they are only effecting porting to Safaricom because their is a planned merger i.e Telkom and Airtel .
I hope telkom buys Airtel Kenya and not the other way round otherwise i will ditch them and stick to Safaricom only .


#47

Thanks for the information


#48

It’s official


#49

Telkom will also have the option to hold up to 49 percent of the shareholding.

Seems #airtel-kenya will be the major share holder …


#50

From the press release Airtel inherit the role of CEO and Telkom’s properties are not part of the deal.

The big question is who will pump money into this new business arrangement?


#51

Airtel has an existing partnership with Liquid Telecom that connects fibre to their sites while Telkom has a high share in existing undersea fibre optic cables and is working on a new one that connects to Djibouti, not forgetting they manage the National Optic Fibre Backbone. Telkom quickly act on customer feedback on network issues while on Airtel it’s always “Please share the nearest landmark…” every time you raise a network issue. Airtel has somewhat different data offers than Telkom, including the postpaid unlimited…
I am eager to see how this works out as the year progresses.
What I’m seeing as possible outcomes are that the new entity will be better placed to improve on it’s quality of serviceand this will be a win for us the consumers. But for that to happen they’ll need to make more profit, hence they may increase tariffs. However, if they find a way to increase their QoS without first increasing their charges then more people may actually feel compelled to porting/switching networks, that’s if you don’t consider the MPESA factor :joy:.
But in the long run naona it won’t really even matter which network you’re on, that is if the merger is implemented in a great strategy.
Another concern is the employees. They’ve said that currently the management structure of both companies remains as is, but what happens when the merger gets fully implemented and the company is one? I’m just hoping this works out well for them too


#52

Citation needed. In the last six months, Telkom have over billed me and disconnected my company line twice. I will admit that their customer support is better than the Orange days but they are still mediocre.

On your second point, Telkom have fibre and microwave links to almost anywhere in this country. It would be good to know the business strategy of the new organisation.

Telkom’s payroll has been a big risk since the KP&TC days. Hands down they still have some of the best network engineers and technicians however that bloated work force is a major drain on cash and resources.


#53

This is from my personal experience with them when I raised up network issues

So in other words people are going to lose their jobs


#54

That’s fair enough. Personally I don’t rate Telkom’s customer service.

It’s never that easy. The golden handshakes from the 90’s and early 00’s are proof enough.

TL;DR it’s expensive to lay off staff.