Kenya Airways seeks piece of mobile telephone business pie

National carrier Kenya Airways has applied for a licence to run a mobile telephone business.

The airline said in a statement yesterday that it had signed a memorandum of understanding with Airtel Kenya to host the telecommunication services on its network.

MAKE A FORAY

Kenya Airways said it had applied for a Mobile Virtual Network Operator licence from the Communications Authority of Kenya which, if approved, will make it the fourth company to foray into the country’s telecoms sector.

This adds a new twist to the changing landscape of telecoms.

“Details will be announced at a later stage once the regulatory licensing and requirements have been completed,” the statement read.

An virtual network licence provides services similar to those offered by mobile firms such as Safaricom, yuMobile and Telkom Kenya without having to invest in its own network infrastructure or spectrum allocation.

The airline’s main target market is its customers who fly into the country and need convenient, easily accessible and affordable roaming services.

“We are now moving towards a strategic direction that affords us an opportunity to meet our guests’ needs aboard our aircraft and extend their communication needs through an affordable option,” Mr Titus Naikuni the airline managing director said.

MOU

The memorandum of understanding between the two companies was signed Thursday by Mr Naikuni and Airtel Africa chief executive Christian de Faria at the airline’s headquarters in Embakasi, Nairobi.

If awarded the licence, Kenya Airways will join Equity Bank’s subsidiary Finserve, Zioncell Limited and Tangaza Pesa which got similar permits in May. The trio is yet to launch services.

The three will also be hosted by Airtel Kenya on its surplus capacity in what is likely to significantly boost the firm’s financial muscle.

“We are greatly encouraged by the shared vision with Kenya Airways and the common urgency to find a way that will enable travellers connect to their loved ones and businesses throughout their travel. It is a pioneering step forward in our quest to make telephony and m-commerce available to all in Africa,” Mr de Faria said.

Airtel Kenya has been struggling to increase its business locally in a market that is dominated by Safaricom.

Airtel and Safaricom are, however, currently concluding the process to buy rival yuMobile in a deal estimated at about Sh10.5 billion.