For more than a year, rumours have been doing rounds that Telkom and Airtel were planning to merge their businesses in the process of augmenting their product and service offerings to match the services of Safaricom. Safaricom had also been mentioned in the competition clause by both Telkom and Airtel that highlighted their inability to grow based on Safaricom’s lion’s share of the local mobile operator business. It is also worth noting that the Telkom’s real estate portfolio and unnamed government services will not be part of the combined deal. Telkom will also have the option to hold up to 49 percent of the shareholding. Such mergers have had a positive impact on the development of the sector and service levels to consumers in other markets.
View Full Article