Telco's merger and critical lessons from industry regulation

Dr Petra Abondo, a consultant in social work.

In April 2018, T-Mobile and Sprint announced their intention to merge and compete with AT&T and Verizon. The union would spur lower prices and enable the new entity deploy next generation 5G networks across the US. As this was unfolding, Kenya’s telco industry was preparing for an intended merger between Airtel and Telkom, the second and third player in the market. The Kenyan case attracted ridicule and criticism from varied quarters.

There were painful conclusions and unsubstantiated accusations that the firms had failed to invest like Safaricom. A bulk of these armchair pundits, including some legislators, are yet to appreciate the historical quest for regulatory intervention; an ongoing 20-year push that has led to the exit of several players.