Business Daily (Nairobi)
Okuttah Mark
15 February 2008
Nairobi — Econet Wireless Kenya, the country's third cellular phone operator, is recruiting staff ahead of its planned roll out in Nairobi and Mombasa.
The company is working to beat a roll out deadline for August set under the Communications Commission of Kenya licensing guidelines, which require a firm to roll out within a year of being granted a licence. Econet was issued with the licence and the frequency nodes last September and has only got seven months to go before the deadline elapses.
"The one year period is normally given to these companies so that they can raise the huge capital involved in the roll out and meeting other logistics, we hope they will meet the deadline" said CCK Director General, John Waweru.
The firm is also securing licences for the base stations from local authorities within Nairobi.
An official with Econet, Sure Kamhunga, based in Johannesburg, South Africa said the roll out plans were under way, but declined to give details on competition grounds.
Other than raising the capital, Mr Waweru said the company needed to secure permits from local authorities for base station sites. The sites also have to be endorsed by the National Environmental Management Authority.
Econet was first licensed in 2003 but was unable to roll out due to protracted court battles. However, this came to an end after Econet withdrew the cases against CCK and former information minister Raphael Tuju.
It is anticipated that Econet's entry into the market would bring competitiveness in the sector leading to price reduction and offering end users more choice.
Although the regulator is advocating for infrastructure sharing it is not yet clear if Econet has approached either of the two established mobile operators to share their infrastructure. On September 14, Econet paid the balance of $12 million (Sh840 million) of its $27 million (Sh1.9 billion) licence fee and brought on board local partners.
The total fee was about half of the $55 million (Sh3.9 billion) paid by Safaricom and Celtel in 2000.The balance was part of the conditions set for it by the regulator before allocating it with the frequencies and number codes.
The other condition was naming its local partners.Econet new local partners replaced the Kenya National Federation of Co-operatives, its previous majority shareholder who was unable to raise the licence fee.
Under the new arrangement, Econet Wireless Kenya now holds 70 per cent of the company, Starnet Limited owns 26 per cent, Corporate Africa two per cent and Crosslink two per cent.Last month Econet International the leading share holder in the consortium that won the third mobile license, Econet Kenya Wireless Ltd, sold 49 per cent of its share to an India telecommunication company Essar.
In the deal Essar was to provide the roll out capital and expertise required in rolling out the project.
In India, Essar communications runs a joint venture with the UK based Vodafone Plc through a brandname Vodafone Essar ( earlier known as Hutchison Essar). The company serves a rapidly growing base of over 32 million subscribers across the country.
Vodafone Plc has a 40 per cent interest in listing candidate Safaricom.
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am greatfull that youre coming to Kenya as a third mobile service provider, i want to join your organization, how can i apply and join you?
I would like to thank Econet Wireless for venturing in our country Kenya,I am interested in learning more about your company and working with your organization, how can i apply and join you?
Im interested with working with econet kenya how do i get therir contacts
Iam glad to hear about you econet wireless and much willing to work with you. where are your offices?
am very impressed of you econet coming to Kenya as a third mobile service provider i would as well like to be one of your employee how do apply to your most reputable company?
Am impressed by the inroduction of a third mobile service provider in our beloved country. Am very much interested in being a part of your professionals as i believe i have the work experience and qualifications required to take up the challenges of the job. How do i apply for the job?
Kind regards.
First of all,my regards and congrats. I guess by now you know what kenyan people alwayz need cheaper calling rates and business is fantastic.Have seen it work and will work for you if you try it.Will really like to work with you. Where are your offices? thanx in advance
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I am reaaly impressed that a third mobile service provider is comming on board. I am really interested on being a part of the company but the problem is that these guys have no address. How can i get their address so that i join them?