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Telkom and Airtel Kenya Merger?
maka
#21 Posted : Friday, February 08, 2019 1:49:48 PM
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Location: Nairobi
Telkom and Airtel have signed a binding agreement to operate under a joint venture company to be named Airtel-Telkom.
possunt quia posse videntur
Mastermind
#22 Posted : Friday, February 08, 2019 1:58:07 PM
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Joined: 1/25/2012
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maka wrote:
Telkom and Airtel have signed a binding agreement to operate under a joint venture company to be named Airtel-Telkom.


Airtel to own 51%, Telkom kenya to own 49%. Mugo to be chairman of the new entity, airtel ceo will be the ceo of the new entity.
If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them.
snifadog
#23 Posted : Friday, February 08, 2019 1:58:23 PM
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Joined: 6/6/2016
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these 2 weaklings will still not stand a chance against mighty green monster
Ericsson
#24 Posted : Friday, February 08, 2019 2:00:14 PM
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Joined: 12/4/2009
Posts: 7,042
Location: NAIROBI
snifadog wrote:
these 2 weaklings will still not stand a chance against mighty green monster


Exactly,this is a marriage of convenience and a way for Airtel to exit kenya secretly.
Mastermind
#25 Posted : Friday, February 08, 2019 2:09:41 PM
Rank: Veteran


Joined: 1/25/2012
Posts: 1,572
Location: Langley
Ericsson wrote:
snifadog wrote:
these 2 weaklings will still not stand a chance against mighty green monster


Exactly,this is a marriage of convenience and a way for Airtel to exit kenya secretly.

Lets wait and see.
If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them.
snifadog
#26 Posted : Friday, February 08, 2019 2:36:48 PM
Rank: Member


Joined: 6/6/2016
Posts: 123
Location: Nairobi
Ericsson wrote:
snifadog wrote:
these 2 weaklings will still not stand a chance against mighty green monster


Exactly,this is a marriage of convenience and a way for Airtel to exit kenya secretly.


Airtel bought Tigo in Rwanda in order to compete with MTN Rwanda. Airtel is neither leaving nor staying
murchr
#27 Posted : Friday, February 08, 2019 5:43:29 PM
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Joined: 2/26/2012
Posts: 14,714
This will just result to job losses here and there
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
Ericsson
#28 Posted : Tuesday, February 12, 2019 7:47:35 AM
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Joined: 12/4/2009
Posts: 7,042
Location: NAIROBI
murchr wrote:
This will just result to job losses here and there

Telkom kenya fiber will not be part of the deal
Angelica _ann
#29 Posted : Tuesday, February 12, 2019 8:05:06 AM
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Joined: 12/7/2012
Posts: 10,698
Ericsson wrote:
murchr wrote:
This will just result to job losses here and there

Telkom kenya fiber will not be part of the deal


So how will this be run?
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
Ericsson
#30 Posted : Tuesday, February 12, 2019 9:18:36 AM
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Joined: 12/4/2009
Posts: 7,042
Location: NAIROBI
Angelica _ann wrote:
Ericsson wrote:
murchr wrote:
This will just result to job losses here and there

Telkom kenya fiber will not be part of the deal


So how will this be run?


If airtel wants access to the fiber infrastructure there will be a small fee they pay.
The fiber business will remain under Telkom Kenya.
The mobile business will be under Airtel-Telkom company and telkom kenya will have upto 49% stake in it.
Ericsson
#31 Posted : Tuesday, March 05, 2019 6:18:16 AM
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Joined: 12/4/2009
Posts: 7,042
Location: NAIROBI
https://www.businessdail...9174-e3xaw1z/index.html

A National Assembly committee has raised the red flag on the proposed merger between Airtel and Telkom Kenya, saying there are outstanding issues in the deal that should be addressed before it is given the seal of approval.

The two telcos have signed an agreement to merge their businesses and operate as Airtel-Telkom, but the Committee on Implementation claims the deal has all the hallmarks of a scandal where private individuals are buying off a public entity through the backdoor for a song.

The committee has thus invited the relevant government agencies to appear before it to shed light on details of the merger that industry players say is aimed at taking on the dominant industry player, Safaricom
Of particular interest to the House team, which is chaired by Narok North MP Moitalel ole Kenta, is the 2014 Special Report of Public Investment Committee (PIC) on the privatisation, recapitalisation and restructuring Telkom Kenya’s balance sheet which was adopted by parliament in 2015. The committee is charged with the responsibility of the ensuring that all the resolutions of the House are implemented.

Among the agencies that will appear before the committee include the National Treasury, Ethics and Anti-Corruption Commission Headquarters (EACC), State Law office, Telkom Kenya, Communications Authority of Kenya (CA) and the Ministry of ICT.

On Monday, Nominated MP Godfrey Osotsi, who is the vice- chair of the committee, confirmed that the report had been tabled to the committee for consideration following reports of a looming merger.

“We are handling the matter. We have invited all those mentioned in the report and the implementing agencies to establish the status of the implementation of the report. We want to know from these agencies why the report has never been implemented,” Mr Osotsi said.

In the restructuring, carried out in December 2007, France Telecom (now Orange S.A.) bought a 51 percent stake in Telkom Kenya at a cost of Sh26 billion but PIC dismissed the deal as akin to share- fixing arising from the fact that the Government only got Sh2.5 billion of the required Sh4.9 billion.
obiero
#32 Posted : Tuesday, March 05, 2019 6:41:24 AM
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Joined: 6/23/2009
Posts: 12,014
Location: nairobi
Ericsson wrote:
https://www.businessdailyafrica.com/corporate/companies/red-flag-over-Airtel-Telkom-merger/4003102-5009174-e3xaw1z/index.html

A National Assembly committee has raised the red flag on the proposed merger between Airtel and Telkom Kenya, saying there are outstanding issues in the deal that should be addressed before it is given the seal of approval.

The two telcos have signed an agreement to merge their businesses and operate as Airtel-Telkom, but the Committee on Implementation claims the deal has all the hallmarks of a scandal where private individuals are buying off a public entity through the backdoor for a song.

The committee has thus invited the relevant government agencies to appear before it to shed light on details of the merger that industry players say is aimed at taking on the dominant industry player, Safaricom
Of particular interest to the House team, which is chaired by Narok North MP Moitalel ole Kenta, is the 2014 Special Report of Public Investment Committee (PIC) on the privatisation, recapitalisation and restructuring Telkom Kenya’s balance sheet which was adopted by parliament in 2015. The committee is charged with the responsibility of the ensuring that all the resolutions of the House are implemented.

Among the agencies that will appear before the committee include the National Treasury, Ethics and Anti-Corruption Commission Headquarters (EACC), State Law office, Telkom Kenya, Communications Authority of Kenya (CA) and the Ministry of ICT.

On Monday, Nominated MP Godfrey Osotsi, who is the vice- chair of the committee, confirmed that the report had been tabled to the committee for consideration following reports of a looming merger.

“We are handling the matter. We have invited all those mentioned in the report and the implementing agencies to establish the status of the implementation of the report. We want to know from these agencies why the report has never been implemented,” Mr Osotsi said.

In the restructuring, carried out in December 2007, France Telecom (now Orange S.A.) bought a 51 percent stake in Telkom Kenya at a cost of Sh26 billion but PIC dismissed the deal as akin to share- fixing arising from the fact that the Government only got Sh2.5 billion of the required Sh4.9 billion.

Investors of FDI type will have very little interest in Kenya going by recent events
COOP 5,500; KCB 3,700; KNRE 100,000; KQ 221,100
Ericsson
#33 Posted : Thursday, May 09, 2019 10:17:39 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,042
Location: NAIROBI
obiero wrote:
Ericsson wrote:
https://www.businessdailyafrica.com/corporate/companies/red-flag-over-Airtel-Telkom-merger/4003102-5009174-e3xaw1z/index.html

A National Assembly committee has raised the red flag on the proposed merger between Airtel and Telkom Kenya, saying there are outstanding issues in the deal that should be addressed before it is given the seal of approval.

The two telcos have signed an agreement to merge their businesses and operate as Airtel-Telkom, but the Committee on Implementation claims the deal has all the hallmarks of a scandal where private individuals are buying off a public entity through the backdoor for a song.

The committee has thus invited the relevant government agencies to appear before it to shed light on details of the merger that industry players say is aimed at taking on the dominant industry player, Safaricom
Of particular interest to the House team, which is chaired by Narok North MP Moitalel ole Kenta, is the 2014 Special Report of Public Investment Committee (PIC) on the privatisation, recapitalisation and restructuring Telkom Kenya’s balance sheet which was adopted by parliament in 2015. The committee is charged with the responsibility of the ensuring that all the resolutions of the House are implemented.

Among the agencies that will appear before the committee include the National Treasury, Ethics and Anti-Corruption Commission Headquarters (EACC), State Law office, Telkom Kenya, Communications Authority of Kenya (CA) and the Ministry of ICT.

On Monday, Nominated MP Godfrey Osotsi, who is the vice- chair of the committee, confirmed that the report had been tabled to the committee for consideration following reports of a looming merger.

“We are handling the matter. We have invited all those mentioned in the report and the implementing agencies to establish the status of the implementation of the report. We want to know from these agencies why the report has never been implemented,” Mr Osotsi said.

In the restructuring, carried out in December 2007, France Telecom (now Orange S.A.) bought a 51 percent stake in Telkom Kenya at a cost of Sh26 billion but PIC dismissed the deal as akin to share- fixing arising from the fact that the Government only got Sh2.5 billion of the required Sh4.9 billion.

Investors of FDI type will have very little interest in Kenya going by recent events


If transaction is above board/transparent then there should be no issue.
Let's avoid another RVR fiasco.
Ericsson
#34 Posted : Friday, July 12, 2019 7:20:17 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,042
Location: NAIROBI
Much-hyped Airtel-Telkom merger runs into more hurdles

When Airtel Kenya and Telkom Kenya announced plans to merge operations last February, critics were quick to term the union “a marriage of dwarfs.”

Even as the merged entity is set to command 34 per cent of the market share, latest industry data from the Communications Authority of Kenya (CA) and Airtel Africa’s regulatory filings with the London Stock Exchange, paints a gloomy picture.

This raises questions as to whether the two companies are forming a formidable force to rival Safaricom or simply prolonging the inevitable while pushing the telecommunications sector closer towards a monopolistic setting.

Telkom Kenya, which was expected to have sound financial standing than Airtel Kenya, has been faltering despite efforts by the new management to turn the company around following a rebrand two years ago.

According to the industry report by the CA, the firm lost 8.9 per cent of its subscribers in the first three months of this year. “Telkom Kenya Ltd’s market share dropped to 7.9 per cent from 9.0 per cent reported in the previous quarter,” said CA in its latest report on the status of the industry.

The decline in the market share was due to a loss of 400,000 subscribers in the three months between January and March this year.

As of March 31, the firm had 4.053 million customers, 8.9 per cent lower than the 4.44 customers it had as of December last year. This is in comparison to its competitors who saw their subscriber base expand by 15.2 per cent (Airtel) and 1.7 per cent (Safaricom). Finserve, the mobile virtual network operator owned by Equity Bank, also experienced a sharp drop in subscribers at 17 per cent during the quarter.

Fewer customers meant lower voice traffic and fewer messages sent by its remaining customers. In a market where the operators are constantly reviewing downward their prices or giving their customers discounted prices through promotions, it is unlikely that Telkom Kenya will be growing revenues with a declining customer base. “Telkom Kenya Ltd’s outgoing mobile voice traffic declined to 671.8 million minutes during the period under review from 706.5 million minutes recorded in the previous quarter,” said the CA report.

An estimate based on Telkom Kenya’s average pricing for on-net and off-net voice calls means it lost at least Sh70 million in gross revenue in the three months.

T-Kash, the company’s mobile money venture also posted poorer performance compared to last year, with customer numbers reducing. The service, however, recorded a slight uptick in the value of transactions and the number of agents.

Looking at the data from the regulator, it would appear Telkom Kenya is scaling down activities or at the very least has gone into “autopilot mode” as it goes through the last stages of merging with rival operator Airtel.

Telkom Kenya, however, insists it is still active in the market and executing its strategy, although the management remains vague on the reasons for the significant decline in customer numbers. “Delivering customer value is the core of our business,” said the company in a statement to Financial Standard. “To this end, we have been on network expansion and optimisation programme, meant to boost our quality of service in Nairobi, Kisumu, Mombasa, Nakuru and Eldoret guided by customer demands in these areas.”

“We are also working closely with the industry regulator, the CA, to construct 14 GSM sites to cover 28 sub-locations in nine counties under the auspices of the Universal Service Fund that seeks to further network expansion across the country.”

“Telkom has adopted a more targeted approach toward product and service launches; with one such initiative being the Share Life campaign, which has enabled our customers to enjoy free night data, free WhatsApp and free minutes for Telkom-to-Telkom calls. We are confident that these and other ongoing initiatives will boost our numbers.”

Telkom Kenya also said the merger with Airtel Kenya is on course, with the two operators waiting for regulatory approvals. “Consultations are still ongoing with the regulatory authorities for the requisite approvals, which will enable the parties to proceed to the next stage of the process,” said Telkom.

However, analysts believe the merger will have little impact in presenting a strong challenge to Safaricom’s market leadership, primarily based on the weaknesses in the operating strategies of the two.

“Both Airtel and Telkom Kenya have focused primarily on pricing as their main customer acquisition strategy, ignoring the impact of product diversity,” explained analysts at Sterling Capital. “Although this has been somewhat effective in the short-term, it has not delivered the desired impact in terms of business revenue growth and profitability.”

This was corroborated by Airtel Africa in its listing prospectus when it revealed the pricing strategy adopted to win over subscribers has in fact eroded the company’s earnings.

“The market ARPU (average revenue per user) has stabilised at around Sh460 ($4.6) per month, with the historical evolution driven by an increase of Safaricom’s ARPU due to strong mobile data growth and decline in Airtel’s ARPU attributable to an effort to grow its share of the market through attractive pricing,” said the firm’s prospectus in part.

“Voice ARPU has continued to gradually decline as a result of more intense price competition and growing contribution of mobile data and M-Pesa to the overall revenue mix,” said the company.

This is why the firm continues to report losses, booking a Sh1.2 billion loss in the last financial year despite recording the largest gain in subscriber numbers and market share. Data from the CA indicates Airtel Kenya recorded a 58 per cent increase in the number of subscribers, from 7.2 million in December 2017 to 11.4 million in December last year.

The firm also doubled its market share in the voice and SMS market over the past year, with voice traffic doubling from 1.9 million minutes recorded in the three months ending September 2017 to 4.7 million reported over a similar period last year.

However, the company’s financial position remains precarious. Airtel Kenya’s core capital as of December last year stood at negative Sh3.9 billion, against the Central Bank of Kenya’s (CBK) requirement of Sh5 billion, making it technically insolvent.

CBK sought to withdraw Airtel’s operating licence if the firm failed to come up with a capital restructuring plan to convince the regulator its operations in the country and obligations to consumers were viable.

Airtel Kenya has proposed splitting its mobile money business from the telecommunication operations to create a new entity for financial services.

The firm has also done enhancements on shareholder loans from Sh10 billion to Sh50 billion. CBK, however, says this is still inadequate. Airtel Kenya has until August 31 to raise Sh3.8 billion.

https://www.standardmedi...r-runs-into-more-hurdles
murchr
#35 Posted : Wednesday, July 31, 2019 7:24:55 PM
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Joined: 2/26/2012
Posts: 14,714
Angelica _ann wrote:
Ericsson wrote:
murchr wrote:
This will just result to job losses here and there

Telkom kenya fiber will not be part of the deal


So how will this be run?




Yes Job losses as predicted
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
chiaroscuro
#36 Posted : Thursday, August 01, 2019 2:49:36 PM
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Joined: 2/2/2012
Posts: 1,069
Location: Nairobi
Easy mathematics here:

when you add a negative number to another negative number, the result is a number that is more negative than the original two numbers!

Same goes for bad ideas - two bad ideas mixed together will produce a idea that is worse than the original two.

Wait and see...
Ericsson
#37 Posted : Sunday, August 04, 2019 8:39:36 AM
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Joined: 12/4/2009
Posts: 7,042
Location: NAIROBI
murchr wrote:
Angelica _ann wrote:
Ericsson wrote:
murchr wrote:
This will just result to job losses here and there

Telkom kenya fiber will not be part of the deal


So how will this be run?




Yes Job losses as predicted


Mugo Kibati was the wrong choice as MD for Telkom kenya
maka
#38 Posted : Sunday, August 04, 2019 11:14:55 AM
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Joined: 4/22/2010
Posts: 11,095
Location: Nairobi
chiaroscuro wrote:
Easy mathematics here:

when you add a negative number to another negative number, the result is a number that is more negative than the original two numbers!

Same goes for bad ideas - two bad ideas mixed together will produce a idea that is worse than the original two.

Wait and see...


Laughing out loudly Laughing out loudly Laughing out loudly
possunt quia posse videntur
Ericsson
#39 Posted : Monday, August 05, 2019 11:28:43 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,042
Location: NAIROBI
maka wrote:
chiaroscuro wrote:
Easy mathematics here:

when you add a negative number to another negative number, the result is a number that is more negative than the original two numbers!

Same goes for bad ideas - two bad ideas mixed together will produce a idea that is worse than the original two.

Wait and see...


Laughing out loudly Laughing out loudly Laughing out loudly


Waiting to load more safaricom shares when it goes ex dividend in september.
kawi254
#40 Posted : Monday, August 05, 2019 12:39:52 PM
Rank: Member


Joined: 2/20/2015
Posts: 313
Location: Nairobi
Ericsson wrote:
maka wrote:
chiaroscuro wrote:
Easy mathematics here:

when you add a negative number to another negative number, the result is a number that is more negative than the original two numbers!

Same goes for bad ideas - two bad ideas mixed together will produce a idea that is worse than the original two.

Wait and see...


Laughing out loudly Laughing out loudly Laughing out loudly


Waiting to load more safaricom shares when it goes ex dividend in september.


The Helios guys are Venture capitalists...they were never in Telkom to grow it to compete with Safaricom.

After this merger GoK will lose more shareholding even after GoK lost shareholding with the Orange-Telkom merger.
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