Telkom Kenya has announced plans to set up a 3G network in the country, after the regulator reduced the cost of 3G licenses by 60% in a bid to encourage competition.
Bloomberg quotes Angela Mumo, the company’s head of corporate communications, as saying, “We wanted the fee to go down to $3 million and on the higher side $10 million. Now we can confirm we are taking out a 3G license. We will roll out 3G in quarter four.”
Safaricom Ltd. holds the only 3G permit in Kenya and the company plans to seek a partial refund for the $25 million it spent in 2007 to acquire it, the Business Daily reported on June 11, citing Chief Executive Officer Michael Joseph.
Safaricom, East Africa’s biggest mobile-network operator, and Telkom Kenya compete with Zain Kenya Ltd., a unit of Bharti Airtel of India, and Essar Telecom Kenya Ltd., a unit of India’s Essar Group.