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Mobicom signs new contract with Telkom Kenya

July 30, 2010 • Mobile and Telecoms, Top Stories

Mickael Ghossein, Group Chief Executive Officer Telkom Kenya

AFTER terminating its contract with Safaricom a week ago, Mobicom Kenya Limited has now entered into a partnership with Telkom Kenya as its main distributor.

During its partnership with Safaricom, Mobicom Kenya Limited sold more than sh 450 million worth of Safaricom airtime per month, according to the proprietor Paul Ndung’u.

The Company which is also associated with Mobicom Connections and Safari Ting Ting Limited took the twin move in a period of less than 48 hours, a conscious business decision, according to Mobicom Managing Director Joel Kibe.
Less than a fortnight ago, Telkom Kenya announced plans to boost its distribution channels as part of plans to double revenues for the second half of this year.

Telkom Kenya said the partnership would see it grow its footprint by tapping into Mobicom’s vast distribution network of 42 outlets across the country that adequately covers 85 per cent of Kenya’s population.

The announcement promises to cause major realignments within the telecommunications industry due to Mobicom Group’s huge customer base, offering Orange (Telkom Kenya) the opportunity to grow its market share.

“This deal promises Orange a quantum leap in terms of growing its market share and distribution network in line with our business strategy. It comes on the back of a Sh19 billion investments made to improve capacity.

“We are reorganizing and strategizing on how to engage ourselves in a different way of business, it is a strategic business decision to realign our business”, Kibe said while announcing the move to terminate the deal with Safaricom last week.

It was earlier speculated that Mobicom terminated its deal with Safaricom in order to link up with zain Kenya after they were acquired by Indian firm Bharti Airtel.

In total, the three Companies handle more than 10 percent of Safaricom direct sales which translates into more than sh 5.4 billion of sales annually.

Mobicom was named as Safaricoms dealer of the year six times in a row .The company has 45 outlets countrywide supported by 15 promotional vehicles and more than 300 motor bikes selling mobile products such as airtime, modems and laptops.

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