Airtel mobile network operator spends Sh4.7 billion to buy more spectrum as it works to expand its 4G network all across the nation. The 60MHz license in the 2600 MHz band issued by the Communication Authority of Kenya (CA) is expected to serve from July 2022 till 2037.
Airtel Kenya said in a statement that, “the additional spectrum would support its 4G network capacity expansion in the market for both mobile data and fixed wireless home broadband capability. It would also enable the relaunch of future 5G networks, offering the significant capacity to handle the nation’s ongoing rapid data growth.”
Airtel is the second largest mobile network in Kenya having a total of 16.7 million subscribers which is equal to 25% market share, The leading mobile network is Safaricom with a total of 65% market share. A few months prior to the spectrum purchase, Airtel Kenya and the CA reached an agreement for the resolution of a dispute regarding a Sh2.2 billion spectrum payment related to the company’s 2014 acquisition of Yu Mobile from Essar.
Following its 2014 agreement to buy Essar’s yuMobile with Safaricom, the National Treasury requested in 2016 that Airtel Kenya pay Sh2.26 billion in license costs through the CA. The 2.26 million yuMobile users were purchased by Airtel for Sh779 million as part of the agreement, which was valued at roughly sh11.3 billion. Safaricom took ownership of the frequencies and phone lines.
Airtel Kenya claimed that the Communication Authority had committed to writing to combine its operating license with that of the long-gone Yu-Mobile, giving Airtel the right to conduct business in the nation through January 2025.
In December 2017 airtel went to court, and the ruling from the court favored telcos. The ruling claimed that the National Treasury was wrong in demanding airtel to pay sh2.2 billion despite the telco’s existing contract with CA.
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