The Communications Authority of Kenya (CAK) on 28 March 2014, approved the bid by Safaricom and Airtel Kenya to acquire the assets of yuMobile.
The Communications Authority of Kenya approval follows the February 28 application by the two operators proposing to acquire the assets of Essar Telecoms.
Safaricom was interested in buying Essar Telecom’s passive infrastructure located on 453 sites.
In addition, Safaricom planned to be granted the right to use Essar Telecom’s spectrum and residual assets including IT infrastructure.
“The CAK has provided has provided a 6 month transition period to allow for seamless transfer of the services within the parties involved. The compliance of the three firms to the requirements will determine the final consent of the Authority for the sale and transactions between Essar Telkom, Safaricom and Airtel Kenya,” said Francis Wangusi, CAK Director General.
“Additionally, the authority is also requesting that Airtel submits the proposed Service Level Agreement (SLA) for the subscribers acquired from Essar Telecom. Consumer protection is one of the core mandates of the Authority. In considering its obligation, the Authority has asked the three firms to ensure that in their proposed arrangements guarantee seamless continuity of services to subscribers,” stated Wangusi.
The new deal will see Airtel Kenya acquiring yuMobile’s 2.8 million subscribers, resulting in a total of 8.2 million users.
Safaricom has about 20.8 million users while Orange has 2.2 million subscribers.