Telkom Kenya has protested against license issuance to three Mobile Virtual Network Operators in absence of contractual guidelines saying the act poses unfair competition to operators.
The telecommunications company also wrote to Communications Authority of Kenya (CAK) enquiring on the same. Without rules of engagement and parameters on hoe the acting mobile operators should do the new business, it has been difficult to strike deals with the parties that have shown interest in investing.
The licences offered have been issued under the Application service provider category to provide all forms of services to end-users using the communications infrastructure of a licensee under Tier according to Francis Wangusi, CAK director general.
CEO Telkom Kenya Mickael Ghossien said “The authority ought to consider the cost of investment put by the existing players and the possibility that MVNOs having not invested as much may engage in competitive practices that would lead to market dumping and lead to fresh price wars.”
He also emphasized on the vacuum this may cause resulting to inequitable distribution of the said partnerships and market concentration of the MVNOs in a single operator. The virtual Network Operators will offer all services; voice calls, data, mobile money transfer services and Short message services at a license fee of sh100,000 only, evidently posing serious competition against heavily invested telecom companies.
The three Mobile Virtual Network Operators licensed are Finserve Africa Ltd, a subsidiary of Equity Bank, Mobile Pay Ltd, owned by Tangaza Money and Zioncell Kenya. They will ride on existing operators’ networks at a negotiated fee, saving them the pain of heavy capital investment associated with rolling out telecommunication networks.
Mr Wangusi said the authority is working on the policy guidelines and will release them before June.
Promote your product, event, press release, or launch a report to a highly engaged tech and business audience. You can also take over our homepage for premium visibility and sponsor our monthly #TechNight events and podcasts and annual StartupEast Conference & Awards to maximize brand exposure.
Beyond reach and visibility, we have over ten years of experience in SEO-driven digital publishing and we are the best in the SEO market at helping brands grow organic visibility through high-quality editorial backlinks and strategic content placement. We are here to help you improve your search rankings and long-term discoverability. We also help improve AI discoverability, ensuring your brand is more visible across emerging AI-powered search and recommendation systems.
Your campaign will also be extended across TechMoran, BusinessTech.co.ke, and AfricanWomenNetwork.net, including their newsletters, giving you wider reach and engagement across East Africa’s leading digital audiences. Be part of the region’s biggest tech and business platforms monthly, quarterly, and annually.
Contact Sales