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Orange Telkom Kenya Denies
[April 22, 2014]

Orange Telkom Kenya Denies


(AllAfrica Via Acquire Media NewsEdge) Telkom Kenya has refuted media reports that it will shut down its operations in Kenya, saying it is instead investing more in the country.

Reports that the company was planning to exit the Kenyan market had caused a stir into the industry with stakeholders apprehensive about the future of mobile communication in the country.

Telkom Kenya Chief Executive Officer Mickael Ghossein told reporters at his office last week that the company is instead investing over $30 million towards transforming its operations to enhance service delivery and increase market share at a time when competition in industry tends to discriminate against small players.



Reports of Orange's exit from Kenya came hot on the heels of an announcement by another player Essar Telecom that is was exiting the market due to non-profitability. Essar which trades under the yu brand name also announced that it was selling of its asset to the two leading players Safaricom and Airtel.

Currently, Safaricom is the dorminant player in Kenya mobile communication industry with 70 per cent market share while Airtel trails it with just about 25 per cent. The two other players (read Orange and Essar) have to make do with the remaining five per cent, a situation that has impeded their growth in a tumultuous market.


Ghossein explained that France Telecom that has 70 percent shareholding in the company is looking for strategic partners that will pump in more capital to the business.

The Kenyan government holds 30 percent stake in the company.

"We are putting in more capital to meet growing demand for our services to the market and provide our customers with superior services," Ghossein said.

He said the capital expenditure is targeted at rolling out 3G network across the country, expand the national optic fibre backbone and launch the Multi Service Access Node (MSAN).

The telco is also constructing the national backbone fibre and laying of transport cables across the country in preparation for the launch of Internet connectivity via optional fibre networks in Kenya and by extension the region.

Ghossein also said they are also constructing and managing the National Optic Fibre Backbone Infrastructure (NOFBI) on behalf of the government and currently has five operators using the network having constructed a total of 5,200 kilometres of duct fibre.

He said the company has built and is operating three of the four landing stations for fibre optics, that include The East African Marine Systems (TEAMS), Eastern African Submarine Cable System (EASSy) and the Lower Indian Ocean Network (LION II).

"These cables continue to carry Internet and private data traffic within and without the country, enabling Kenya to continue growing its National Broadband Agenda as well as the realization of the National ICT Master Plan and the country's Vision 2030," he said.

He also said that the company is currently in the second phase of the fixed technology refresh with a roll out of high speed network, supported by MSAN technology that allows for the aggregation of multiple subscribers on the network.

"Telkom Kenya is an ongoing business concern and we are focused on growing our business and serving our customers," he said.

Copyright East African Business Week. Distributed by AllAfrica Global Media (allAfrica.com).

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