Zain and Yu in deal to share base stations

Mobile phone service providers, Zain Kenya and Essar Telecom, have officially agreed to share infrastructure.

The deal signed last Friday will see the two firms share about 300 base transmission stations for the next 15 years.

In the past, the Communication Commission of Kenya has maintained that it was against irregular erection of masts in a bid to save the environment.

“CCK is keen on mobile operators sharing infrastructure for the sake of the environment,” said Zain Kenya managing director Rene Meza during the launch of the firm’s Sh95 million subscriber loyalty programme dubbed Rewardz.

The deal is a major boost for the Yu brand whose ambition is to rollout countrywide before the end of the year.

Serve market

“We will have countrywide coverage in the next six months,” said Yu chief executive Srinivasa Iyengar on Monday

He spoke as his firm roped in the Matatu Owners Association in a move that will see drivers sell phone lines and credit as Yu streamlines its distribution channels to serve the mass market.

Individually, Yu had already put up 120 masts; 101 in Nairobi and 18 in Coast.

Given the current global economic recession, firms have been forced to cut operational costs as lenders tighten their purse strings.

According to the deal, the two companies will now share BTS running costs like electricity, rent and fuel.

“The credit crunch is turning out to be a blessing in disguise for us because when money is available for all, nobody wants to cut or share costs,” said Mr Iyengar in an earlier interview.