National carrier Kenya Airways has applied for a licence to run a mobile telephone business.
The
airline said in a statement yesterday that it had signed a memorandum
of understanding with Airtel Kenya to host the telecommunication
services on its network.
MAKE A FORAY
Kenya
Airways said it had applied for a Mobile Virtual Network Operator
licence from the Communications Authority of Kenya which, if approved,
will make it the fourth company to foray into the country’s telecoms
sector.
This adds a new twist to the changing landscape of telecoms.
“Details
will be announced at a later stage once the regulatory licensing and
requirements have been completed,” the statement read.
An
virtual network licence provides services similar to those offered by
mobile firms such as Safaricom, yuMobile and Telkom Kenya without having
to invest in its own network infrastructure or spectrum allocation.
The
airline’s main target market is its customers who fly into the country
and need convenient, easily accessible and affordable roaming services.
“We
are now moving towards a strategic direction that affords us an
opportunity to meet our guests’ needs aboard our aircraft and extend
their communication needs through an affordable option,” Mr Titus
Naikuni the airline managing director said.
MOU
The
memorandum of understanding between the two companies was signed
Thursday by Mr Naikuni and Airtel Africa chief executive Christian de
Faria at the airline’s headquarters in Embakasi, Nairobi.
If
awarded the licence, Kenya Airways will join Equity Bank’s subsidiary
Finserve, Zioncell Limited and Tangaza Pesa which got similar permits in
May. The trio is yet to launch services.
The three
will also be hosted by Airtel Kenya on its surplus capacity in what is
likely to significantly boost the firm’s financial muscle.
“We
are greatly encouraged by the shared vision with Kenya Airways and the
common urgency to find a way that will enable travellers connect to
their loved ones and businesses throughout their travel. It is a
pioneering step forward in our quest to make telephony and m-commerce
available to all in Africa,” Mr de Faria said.
Airtel Kenya has been struggling to increase its business locally in a market that is dominated by Safaricom.
Airtel
and Safaricom are, however, currently concluding the process to buy
rival yuMobile in a deal estimated at about Sh10.5 billion.
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