Home Business News Companies Telkom-Airtel planned merger collapses due to approvals

Telkom-Airtel planned merger collapses due to approvals

A planned merger between Telkom and Airtel has collapsed after both parties failed to get the necessary approvals.

It is due to the above that Telkom has decided to venture into a different business model that will boost its revenue.

The COVID-19 pandemic has forced impacted various business differently but as for Telkom, customer demand has been on data.

They has also revoked a notice they had issued back in July last year to send home 500 employees. Instead they will need the employees to shift to online sources of revenue.

Speaking in the same was Telkom CEO Mugo Kibati who said that they have decided to adapt a different strategy as a company.

He continued by saying that they will focus in providing better services to their customers following the introduction of Google loan internet in the country.

Telkom-Airtel troubles with CAK

Communication Authority of Kenya had issued a number of tough measures to be met by both companies if they are to merge.

One of the conditions was to have part of their licences to be returned to the regulator before any step can be taken.

Secondly, they were requested to make a Ksh 1.3 billion settlement with CAK as settlement before they merge as requesting by telecom giant Safaricom.

All conditions were to favor Safaricom who is currently dominating the market both on voice and financial transactions.

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