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Telkom Kenya, Ericsson enter cell phone network partnership
Related to country: Kenya

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Telkom Kenya, Ericsson Kenya sign deal to set up new cell phone network
May 08, 2008: 06:44 AM EST

NEW YORK (Associated Press) - Telkom Kenya has signed a deal with Ericsson Kenya Ltd. to set up a new mobile phone network in East Africa's largest economy, the companies said.

Telkom Kenya expects the GSM network to be running by year's end, and has hired Ericsson to build and operate it initially as Telkom Kenya retrains and recruits technical staff.

Ericsson will help in training engineers, and will transfer management to Telkom in 18 months, the companies said at a news conference.

The deal, signed late Wednesday, anticipates project costs of 9 billion shillings ($145.6 million; 94.4 million euros).

Over the next three years, Telkom Kenya plans to invest 19 billion shillings ($307.4 million; euro199.3 million), CEO Dominique Saint Jean said.

Kenya _ East Africa's largest mobile phone market _ already has two established network providers, and apart from Telkom Kenya's project, another is being set up.

Mobile phone use has expanded beyond expectations in the country, with 6.48 million subscribers as of June 2006, compared with 180,000 in June 2000, according to the Communications Commission of Kenya.

Telkom Kenya was privatized in December 2007, with a France Telecom-led consortium buying a 51 percent stake and the government holding the rest of the company

May 8, 2008 | 8:26 AM Comments  3 comments

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Seanamo Sean Amos
May 8, 2008 | 8:43 AM

This is so good for Kenya and its people...
Muhia Bernard Muhia
May 9, 2008 | 3:25 AM
Telcom Kenya
I am astounded that it took Telcom kenya this long to launch its own mobile service wing. Well, now that its offloading its share in Safaricom, i guess they will use the insider information they had privileged access to regarding sefaricom to ensure that they beat them hands down. Lets see how this turns out. Maybe we should register offshore companies like mobitelea and get dividents from the new provider!
Seanamo Sean Amos
May 9, 2008 | 3:49 AM

Bernard, i have to agree with you, that Telkom's mobile service was long overdue but its a great opportunity... lets see how the partnership works out...
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