yuMobile owners commit Sh17bn to revitalise network

yuMobile’s shareholders have given go ahead for the telecom to invest Sh17 billion to revitalize its network infrastructure in the country over the next two years.

The investment was scheduled to start earlier but delays in the reduction of mobile termination rates (MTR) eroded confidence among the company’s shareholders in the local telecoms business.

In an interview with Nation last week, yuMobile country manager Madhur Taneja said the company’s shareholders had suspended all investments into the local arm following the industry regulator’s delay in making key decisions.

“Our business plan was guided by the promise from government to reduce the rate at which mobile operators charge each other for completing calls from rival networks. The one-year delay shook the confidence of our shareholders but we are now glad the regulator has kept its promise,” Mr Taneja said.

The Communications Commission of Kenya (CCK) last week slashed the MTR from Sh2.21 to Sh1.44 bringing close a long and winding discussion that tore the telecom industry apart as mobile phone firms took different stands on which direction the rate cut should take.

On one hand Airtel Kenya and yuMobile supported a lower MTR and accused CCK of sabotaging their growth trajectory by delaying the rate cut because it was a significant factor in the roll out of their strategies while Safaricom and Telkom Orange on the other hand pushed for a higher rate.

The company now plans to grow its market share and become a big player in the industry by 2015.