Telecommunications giant; Airtel Kenya has paid 1.13 Billion Kenyan Shillings (which is around 10 million United States Dollars (USD)) to the Kenyan government in fees for a network license to enable it further cater for the increase in demand for its mobile data services.
The Communications Authority of Kenya (CA) which is the industry’s regulator revealed that Airtel Kenya paid the sum in question in April of 2022 and paved the way for its use of the new spectrum for a period of ten (10) years.
Airtel Kenya had previously temporarily acquired the license for a period of two (2) years up until February of 2022 in order to efficiently support the increase in the demand for its data services at a time when businesses in Kenya made the decision to continue their operations from home because of the Coronavirus pandemic which went worldwide in 2020 and the numerous efforts to prevent its spread.
The 1.13 Billion Kenyan Shillings (which is around 10 million United States Dollars (USD) payment by Airtel Kenya will also be succeeded by a 20 million United States Dollars (USD) (which is around 2.26 Billion Kenyan Shillings) fee for the current license that the company has been using since as far back as 2015. Airtel Kenya has reached an agreement to settle over the next three (3) years.
According to reports, the payments are the outcome of a settlement out of court with the Kenyan government.
Airtel Kenya signed the agreements with the Communications Authority of Kenya (CA) in February of 2022. The signed agreements will make it possible for the Telecommunications company to begin negotiations needed to ensure that it is free from a rule which will require shareholders by March of 2024 to own not less than a 30 percent stake in Telecommunications companies operating in Kenya.
The Communications Authority of Kenya (CA) made it known via disclosures that, “On 16th March 2022, the Authority issued Airtel Networks Kenya Ltd with a frequency license for a non-contiguous 2×10 MHz block of spectrum in the 2100 MHz band at an initial spectrum license fee of USD$ 10 Million valid for 10 years.”
The spectrum in question will make it possible for a mobile service operator to make large data bundles available to its customers without having to increase the monthly costs to said users.
In March of 2020 the demand for mobile and fiber backed internet reached its peak when the Kenyan government put a ban on social gatherings, ordered that businesses along with public offices to continue their operations remotely, and also put restrictions on movements in order to prevent the spread of the Coronavirus pandemic.
In addition, the shutting down of learning institutions in the country for as much as a little over a year because of the Coronavirus pandemic restrictions, led to an even greater demand for mobile internet services during said period.
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Internet Service Providers (ISPs) in the country both mobile and fixed and including Airtel Kenya, have increased their investments by acquiring new spectrum licenses and also constructing more towers in a bid to provide much more reliable internet services to their users due to their increased needs for said services.
Read Also: Safaricom In Dominance Row With Airtel Kenya
The acquisition of the spectrum license has further strengthened Airtel Kenya’s moves to make complete use of the higher demand for internet services sparked by the Coronavirus pandemic restrictions and also challenge the perceived dominance of fellow telecommunications company; Safaricom.
Read Also: Airtel Losses 6 Billion Kenyan Shillings
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