This archive report was first published on 12 September 2019.
Published on September 12, 2019, a report by the Communications Authority revealed that Airtel and Telkom owe Safaricom a combined KES 1.3 billion in interconnection fees.
Interconnection is a framework that allows telecom subscribers to call across telecommunication networks. Safaricom has formally written to the Communications Authority requesting that Airtel and Telkom pay their outstanding debts, which arose from interconnection, co-location, and fibre services.
Telkom Kenya MD Mugo Kibati responded to the allegations, stating, “It is unfortunate that Safaricom wants to revise a deal that will offer consumers credible options, does Safaricom don’t want to see the sector grow, are they wary of competition and even more precisely wary of choice, competitive pricing and value for money for the consumer.”
Airtel and Telkom have a history of rebranding, with Airtel Kenya rebranding from Kencell in 2000 to Celtel in 2004, Zain in 2008, and finally Airtel in 2010. Telkom Kenya rebranded to Orange Kenya in 2007 and back to Telkom Kenya in 2017.
These frequent changes have led to brand erosion and loss of opportunities for the two companies. In contrast, Safaricom has thrived through consistency and innovation, introducing per-second billing and M-pesa, which have contributed to its market dominance.
