- Bharti Mittal is the Founder and Chairman of Bharti Enterprises, one of India’s foremost first-generation corporations.
- It has interests in telecom, space communications, digital solutions, insurance, foods, real estate and hospitality.
- Bharti Airtel, the flagship company of Bharti Enterprises, has operations in 17 countries. It ranks amongst the top three mobile operators globally.
Sunil Bharti Mittal, an Indian business magnate and philanthropist, was in Kenya last week managing a significant announcement by Airtel Kenya, a division of Airtel Africa.
During his visit, Airtel Kenya announced plans to expand its network coverage to meet the growing demand for data services in the country. The new expansion will add 349 sites into its infrastructure network by December.
What’s more, an additional 300 sites are in the pipeline, the management added. The new investment represents the company’s commitment to enhancing connectivity and improving service quality.
We aim to bridge digital divide—Bharti Mittal
The head of Bharti Airtel said in Nairobi that his company wants to progress clients into a future that they have only recently began to imagine, in addition to exceeding their expectations.
“With every step we take to advance our network infrastructure and capabilities, we aim to bridge the digital divide, empowering individuals, businesses, and communities,” Bharti said.
Airtel has adopted a number of technologies and innovations to increase connectivity, boost service quality, and offer a dependable network. This is in response to the issues faced by customers in locations with weak network connectivity.
These include the implementation of 5G and the deployment of LTE for capacity augmentation on the 2600Mhz band. In heavily populated areas, Airtel will also roll out VOLTE and Esim as well as small cell/street solutions.
“We are committed to providing our customers with a network that reaches every corner of Kenya,” said Mr Olusegun Ogunsanya, Group CEO, Airtel Africa.
He claimed that the objective of providing an amazing data experience is what motivates the network expansion initiatives. “We are constantly investing in new technologies and innovations to enhance connectivity, improve service quality, and deliver on our promise of seamless communication,” he said.
Sustainability and environmental responsibility
Airtel Kenya is devoted to environmental responsibility and sustainability in addition to growing its network coverage. The business is undertaking a decarbonization strategy as it grows its network to lessen its environmental impact.
To cut down on greenhouse gas emissions, the telco will switch out old batteries for more environmentally friendly lithium-ion batteries. Additionally, the business is looking at low-carbon alternate fuels for generating backup energy and utilizing solar energy to power its network infrastructure.
“We believe that it is important to balance our business needs with our environmental responsibility,” added Segun, “By using sustainable technologies, we can help protect the environment while also providing our customers with the best possible service.”
Read also: Building a Sustainable Metaverse: Balancing Virtual Worlds and Environmental Impact
Pricing and tariff plans
While the company’s goals for network development would help it gain a stronger position in the market, it has also committed to providing affordable pricing and tariff options to keep its services available to all Kenyans.
In addition, the business keeps providing a safe mobile wallet with Airtel Money. The cash transfer service is giving Kenyans easy access to money and financial freedom.
The ability to transmit money cheaply across all networks, send money for free within the Airtel network, pay utilities with no fees, and save up to 40% on withdrawal fees at any Airtel money agent are some of the key distinctive perks.
“We take immense pride in the tremendous value mobile money has brought to the people of Kenya,” said Mr Ashish Malhotra, Managing Director, Airtel Kenya.
But what exactly does Bharti want?
The Indian billionaire believes that the investment environment in Kenya is remains difficult for telecommunications businesses. In his remarks, he cited Safaricom’s continued dominance despite Airtel’s aggressive network expansion.
Read also: Safaricom readies Ethiopia takeover as it gets M-PESA licence
Bharti is eager to invest billions of dollars in Kenya, but he demands “a level playing field”. He urged on the government to “tame Safaricom dominance,” which touches on both the regulatory landscape and government support for investment.
He claims that Airtel Kenya, which has suffered in recent years, is now making enough income to reinvest.
Bharti is urging the government to protect the current infrastructure, and provide a supportive economic environment. He also urged the government to aid investors, particularly in the telecommunications sector.
Safaricom dominance
“The sheer dominance of Safaricom has been an issue. The government should ensure a fair playing ground for all investors,” Bharti said.
In addition to the country’s network development, the corporation also intends to set up a fiber optic cable in Kenya. This ambitious proposal that may considerably lower the cost of internet in the nation.
Additionally, Airtel intends to sell at least 30% of its Kenyan operations to local investors. This is in accordance with the new Kenyan government ownership guideline in the telecom sector. The regulation mandates that Kenyans control 30 percent of the company. Kenya’s ICT ministry claims that this strategy will enhance local ownership of ICT businesses. To comply, telcos have until March 2024.
In order to synchronize their activities, a few companies, including Airtel Kenya, were exempted from the shareholding rule.
Bharti Mittal is the Founder and Chairman of Bharti Enterprises, one of India’s foremost first-generation corporations. Currently, Bharti Entreprises has interests in telecom, space communications, digital solutions, insurance, processed foods, real estate and hospitality.
Bharti has joint ventures with several global partners including SingTel, SoftBank, AXA, Del Monte and the UK Government.
Bharti Airtel, the flagship company of Bharti Enterprises, has operations in 17 countries. Globally, Bharti Airtel ranks amongst the top three mobile companies.
Airtel is India’s largest integrated communications solutions provider. The telco is Africa’s second-largest mobile operator serving nearly 500 million customers across its operations.
Kenyan telecommunication industry
On June 22, Airtel announced an expansion plan in Kenya, a market dominated by rival Safaricom. The Kenyan government owns a 35 per cent stake in Safaricom.
Safaricom accounted for 66% of Kenya’s 65.7 million mobile (SIM) subscriptions as of December 2022, according to the Communication Authority of Kenya. Airtel had a 26.3% market share, followed by Telkom Kenya (4.9%), Finserve (Equitel), 2.3%, and Jamii Telecom with a 0.5% stake.
M-PESA, a mobile money service offered by Safaricom, has a 96.8% market share. Airtel Money has a 3.1% market share, whereas Telkom’s T-Cash only accounts for a measly 0.1%.
Safaricom has a 65% market share in mobile broadband subscriptions, followed by Airtel (27.9%), Telkom Kenya (5.6%), Finserve (0.6%), and Jamii Telecom (0.8%).
“During the quarter (October-December), Safaricom PLC recorded the highest market shares in fixed data subscriptions at 46.1 percent followed by Wananchi Group at 31.1%,” the Communication Authority of Kenya notes in its latest report.
Read also: The Impact of 5G Technology on the Future of Communication
Acquisition and operation
Bharti Airtel acquired Zain Africa for an enterprise value of US$10.7 billion in 2010 in a deal that saw the birth of Airtel Kenya in the same year. Over the years, the telco has been on an expansion drive geared towards growing its presence, whilst bringing its services closer to its customers to offer them convenience.
Currently, Airtel Kenya’s network infrastructure spans over 3,200 sites, covering an estimated 89 per cent of the country. It has over 60 retail outlets to drive its sales and distribution footprint, and grow its Airtel Money business.
According to management, the retail foot print is in line with the company’s long-term commitment towards delivering to customers. The second leading mobile communications company in Kenya is keen to connect communities by providing relevant and innovative mobile solutions to all, management notes.
To this effect, it has embarked on an expansion drive in the country for an undisclosed investment.
Read also: Airtel’s quiet but aggressive groundworks across Africa
