Telkom seeking fibre cable deal to lift data profit

Telkom Kenya Chief Executive Aldo Mareuse during a press briefing yesterday. [Wilberforce Okwiri, Standard]

Telkom Kenya is in consultation with two parties in a bid to get partnerships to allow it to sell high-speed internet from two undersea data cables that will soon come to Kenya,the firm has said.

The telco is gunning for a bigger market share while focusing on data as it raises its competitive edge against the bigger players - Safaricom and Bharti Airtel.

Telkom also wants the money transfer interoperability deal that it forged with Safaricom to be taken a notch higher.

Telkom wants the deal to include the sharing of a vast network of mobile money transfer outlets, commonly called agents, where Safaricom controls the largest share.

The company has been focusing on data to gain larger market share. It already distributes capacity from three other undersea cables using its extensive fibre network in the country.

“The combination of affordable data options, strong network coverage across the country... catering to a data hungry market, has enabled us to become the preferred data network,” said Chief Executive Aldo Mareuse.

Safaricom, the dominant operator with nearly 70 per cent of the market, cut its internet connection prices last month in response to Telkom’s aggressive positioning.

Telkom, 60 per cent owned by London-based Helios Investment with the rest held by the Government, had 4.1 million users, about nine per cent of the market, as of July this year.

“We are now putting in place an aggressive market engagement campaign to strengthen our push towards five million customers and beyond,” Mr Mareuse said.

The money transfer interoperability deal that also includes Airtel entails the integration of the firms’ mobile money wallets.

As it stands currently, Safaricom and Telkom users can easily transfer cash between them. But users of the Telkom mobile money transfer platform T-Kash cannot get access to their money through Safaricom’s M-Pesa platform.

Mareuse says Safaricom has been opposed to the idea of agent interoperability and it is time the Communications Authority of Kenya (CA), intervened and forced Safaricom to allow other telcos access to its agents.

“Without agent interoperability, then the whole idea of making mobile money transfer easier and cheaper for the end consumer is dead,” he said yesterday at a media briefing.

“It is also against the spirit of fair competition in our industry. If one player is opposed, it is better for the regulator to come in and force that player to toe the line. It is good for everybody, especially the consumer.”

Telkom also wants CA to implement a controversial report that called for Safaricom to be declared a dominant player in the industry.

The report by British research firm Analysys Mason - which has been opposed by Safaricom - has proposed a raft of measures that include forcing the company to share its infrastructure with other players, as well as capping retail prices in the market.

Agree with findings

“I am sure every consideration was made when this report was carried out and it’s time the regulator agreed with its findings and declared dominance in the industry,” said Mareuse.

Telkom also announced that it had invested close to Sh9 billion in its network modernisation programme, which includes repositioning its mobile and enterprise businesses.