Two South African-based firms are among the companies selected to compete for the third mobile phone licence in Kenya. SA-based Econet Wireless Group and Telsar Solutions/Telecel International are among the five groups selected to tender.
Reuters reports that the Kenyan government invited bids for the third mobile operator in February, with a view to reducing tariffs and improving service provision.
The Communication Commission of Kenya (CCK) announced this week that it had selected Econet Wireless Group of SA, Mobile Systems International (MSI) Cellular Investment Holdings BV of the Netherlands, the Kenya Telecommunications Investments Group, Swedish-Kenyan group One Cellular Limited, and Telsar Solutions/Telecel International of SA to tender for the licence.
The statement said an application by Roma Telecom was rejected due to failure to meet the specified requirements. Officials said it was disqualified after it failed to provide evidence that it was teaming up with Portugal Telecom as it had indicated.
The new operators will compete in Kenya`s rapidly growing mobile market against existing operators KenCell Communications and Safaricom.
KenCell is a joint venture between Vivendi International of France and the local Sameer group of companies. Safaricom is run by Vodafone of Britain and Kenyan public telecommunication company Telkom Kenya.
CCK reports that the number of mobile telephone subscribers in Kenya grew from 20 000 in September 1999 to over 1.3 million by the end of 2002.
"The next phase is to invite the short-listed consortia to purchase tender documents," CCK`s spokesman, Mutua Muthusi, said in a statement. The winner of the third licence will be announced in July and the licence awarded in October.
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