Airtel Kenya Agrees to $30M Spectrum Settlement – IT News Africa
Airtel Africa, a leading telecommunications and mobile money service provider with a presence in 14 African countries, today announced that its Kenyan subsidiary, Airtel Kenya Networks Limited (“Airtel Kenya”), has entered into agreements with the Kenya Communications Authority regarding its operating and spectrum licenses.
According to the announcement, Airtel Kenya has received approval to replace its temporary license with a ten-year frequency license for 2×10 MHz of spectrum in the 2100 MHz band.
The agreement will see Airtel Kenya pay a total of $20 million in four installments over the next three years in respect of the 2015-2025 operating and spectrum license settlements. These payments will allow Kenya Telecom to settle its dues to the Kenya Communications Authority for its previous spectrum and operating licenses in the country.
Another $10 million has been agreed to be paid by Airtel Kenya to the Communications Authority for a new 10-year license in the country from 2022 until Telecom will have to renew again in 2032.
Airtel Kenya is one of our largest markets by revenue, and from FY’18 to FY’21 its revenue grew by 20.8% CAGR. This $30 million investment reflects our continued belief in the tremendous opportunity inherent in the Kenyan market.
Airtel Africa joins the FTSE 100
In January, Airtel Africa announced that it would join the Financial Times Stock Exchange.
The telecommunications group was floated on the London Stock Exchange in June 2019 and has since seen significant growth in its customer base, revenues, profits, margins and cash generation, as well as strengthening its its balance sheet thanks to reduced leverage.
“I am extremely proud that Airtel Africa is joining the FTSE 100 just two and a half years after our listing on the London Stock Exchange,” said Segun Ogunsanya, CEO of Airtel Africa.
“This achievement is the result of all the hard work and success achieved by everyone at Airtel Africa. We look forward to continuing to grow the company as we continue to sustainably close the digital divide, expand financial inclusion and to meet the ever-changing needs of our customers.”