kenya based yu mobile owned by esser telcom, is to be sold to the two leading companies in the same field. The deal will see Safaricom, the leading company in subscribers, and Airtel Kenya, which is part if the larger Airtel, give a total of sh 8.6 billion.
It seems impossible for two rival competitors to undertake a deal together, but it's kind of "chamaa business". The two are to buy it to prevent another rival from joining the industry with established customers. As per the agreement, safaricom will buy the technical assets while airtel gets the yu prefix, 075..
This deal seems to favour both since airtel is looking to add subscribers, which it will since all yu mobile users will be directly acquired by airtel. Safaricom will benefit from improving its coverage by the new acquired assets.
Though the deal is not yet complete, due to formal and legal process and a court case filed by yu employees questioning of their job status,there will be a reduction in number of mobile operators from four to three. but this will be for a short while since more are expected to join soon.
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Monday, March 3, 2014
yu mobile to be sold to two kenya mobile giants
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