Major telecoms merger may emerge in South Africa and Kenya

A consolidated mobile service provider may emerge in both South Africa’s and Kenya’s telecommunications sectors this year, comparable to the United Kingdom’s Everything Everywhere (EE), a report says.

The International Data Corporation (IDC) recently compiled a report titled: “African Telecommunications Market Top 10” in which it predicted the two African countries could soon have their own version of EE.

“In 2013, operators will increasingly focus on monetizing investments (especially those surrounding data), targeting the enterprise sector more effectively, employing new business models and getting the best from customers and technologies that were traditionally deemed unprofitable,” said Spiwe Chireka, Africa Telecommunications Program Manager for the IDC.

In the UK, EE is the country’s largest mobile operator, achieving this status with the consolidation of T-Mobile and Orange mobile companies. Chireka believes South Africa and Kenya could follow this example.

According to the IDC, companies in an appropriate position for consolidating their operations may gain more subscribers.

Chireka said he is confident the consolidation will work because “in the UK, Orange was number one in the market and T-Mobile was number four, both are part of large global groups and no one thought it would happen. It would be like MTN merging with Telkom.”

Posted in: Telecoms

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