Kenya gained a fourth mobile network as Econet Wireless Kenya (EWK) said that it will finally launch its network today - after five years of delays caused by legal problems and financial woes.
Econet Wireless International (EWI) recently sold a 49% stake in the company to India's Essar Communications Holdings (ECHL). The companies said that the move would significantly benefit Econet Wireless Kenya (EWK), which is 70% owned by EWI, from a rollout as well as product offering perspective.
The company had been looking for financing for its Kenyan operation after regulators cleared its license application - and a shareholder dispute last year.
The company will be launched under the Yu brand, and will initially cover the capital city, Nairobi followed by Mombasa - with nationwide coverage expected by April next year.
Econet Marketing Director Anna Othoro said Yu would not engage in a price war. "We are not going to launch with tariffs that we cannot sustain in the long term as a business," said Othoro.
Figures from the Mobile World database subscriber database reports that Safaricom is the market leader with a market share of 86.6% with Celtel coming in at 13.4%. Telkom Kenya (Orange) has just started a "mobile" type service. The country itself has a population penetration level of 35%.
The regulator has recently announced that it will make a second attempt at launching mobile number portability - which traditionally benefits new entrants into markets.
On the web: Yu - Mobile World
Posted to the site on 26th November 2008
Posted to: www.cellular-news.com/story/34832.php