Airtel retains yuMobile brand name after buyout
Airtel Kenya CEO Adil El Youssefi explains the firm’s latest promotion, UnlimiNet bundles, to Asha Wairimu (centre) and Amina Rabah. Twenty three more schools have joined the long list of beneficiaries of the Airtel led Internet for schools project. PHOTO | DIANA NGILA |
What you need to know:
- The deal makes Airtel the first mobile operator to run two brands in one market.
- Safaricom acquired the infrastructure and absorbed 150 employees.
- Under the agreement with India’s Essar Group, Airtel will retain the brand for two years and pay more money if it fully wants to own the brand.
The yuMobile brand will continue to operate under its previous terms, even after the recent buyout of 2.55 million subscribers by Airtel Kenya last year.
Under the agreement with India’s Essar Group, Airtel will retain the brand for two years and pay more money if it fully wants to own the brand.
Airtel Kenya CEO Adil El Youssefi confirmed that subscribers would enjoy affordable and free calls on the same tariffs they were on while the firm was owned by India’s Essar Group.
“The product is still in the market; subscribers use the brand name yuMobile,” said Mr El Youssefi.”
The deal makes Airtel the first mobile operator to run two brands in one market. By retaining the brand, Airtel is tapping into the youth market who are the main subscribers of yuMobile.
On Friday, Airtel ran an advertisement under the brand name yuMobile: “Freedom, 10 free yu-to-yu calls all day and night.”
The telco confirmed they kept the yu brand name and subscribers should identify yu with Airtel.
“yuMobile customers will also retain their existing mobile numbers and continue to enjoy their yuMobile services,” Mr El Youssefi said.
YuMobile was acquired by Airtel and Safaricom — East Africa’s largest mobile operator — for $120 million. Airtel acquired the subscribers and the brand name,besides absorbing 25 employees.
Safaricom acquired the infrastructure and absorbed 150 employees.
The acquisition consolidated Airtel’s position as the second largest mobile operator in Kenya with a combined customer base of over eight million and a 26.6 per cent market share.
The yuMobile subscribers will also benefit from an ongoing upgrade on Airtel’s 3G network and later 4G high-speed network.
Meanwhile, despite investments to increase the quality of calls and Internet on yuMobile, the brand has reportedly failed to support Airtel’s business. A year after the acquisition, Communication Authority quarterly statistics showed a significant fall in Airtel’s talk time and short text messages.
