(Ecofin Company) – The authorized battle that has pitted Kenya’s telecom regulator towards Airtel for the previous seven years is being resolved. Each events have reached an amicable settlement.
Airtel Kenya has agreed to pay the $17.6 million demanded by the Communications Authority of Kenya (CA) to resume the corporate’s telecom license. When its license expired practically seven years in the past, the subsidiary of the Indian group Bharti Airtel had switched to the license of YuMobile, a telecom operator it purchased from Essar Telecom and whose license expires in 2025. The transfer was denounced by CA, which opened authorized proceedings towards Airtel Kenya.
“We have now had this long-standing dispute with Airtel over the Essar transaction. The dispute has been there for seven years. However I’m glad to report that we struck a deal and it is a main achievement for us,” CA MD Ezra Chiloba mentioned in an interview with native media.
Airtel Kenya was resulting from make the primary cost final week in order that the telecom regulator ends the authorized proceedings. The second cost is anticipated to be made earlier than 2024, the deadline by which Airtel Kenya should full the divestment of 30% of its fairness to native traders per the brand new telecoms licensing necessities unveiled in April 2021 by Joe Mucheru, the cupboard secretary for the ICT Ministry.
Earlier than the brand new rules, telecom operators have been required to open 20% of their capital to native traders. Airtel Kenya, which had loved an exemption since 2013, is now included.
The corporate is required to conform any more or face sanctions. Airtel Kenya has lengthy complained about Safaricom’s overwhelming competitors and is once more making use of for an exemption. Nonetheless, the telecom regulator has made potential approval of the appliance contingent on the cost of the $17.6 million.
The dearth of a courtroom ruling on Airtel Kenya’s use of YuMobile’s license has all the time prevented the telecom regulator from forcing the telecom firm to pay. The courtroom has by no means outlined whether or not Airtel Kenya was in breach or not.
Isaac Ok. Kassouwi