Telkom eyes 2,000 data sites with Sh1b capital investment

Mugo Kibati CEO Telkom Kenya Limited. [Wilberforce Okwiri, Standard]

Telkom Kenya is betting on Sh1.1 billion expansions of its fourth-generation (4G/LTE) network to improve its service offering and grow its market share.

Telkom Kenya chief executive Mugo Kibati said the investment, in partnership with telecom firms Ericsson and NEC XON, will see an additional 2,000 sites built as part of the telco’s digital strategy.

“Data is a fundamental human right and is now emerging as a daily necessity,” said Kibati. “The customer is also demanding more competitive and comprehensive products that address their different and ever-changing needs - browsing, downloading, streaming, etc.”

The partnership is part of Telkom Kenya’s business reorganisation strategy that started last year, following failed merger talks with Airtel Kenya.

The Communication Authority of Kenya data indicate Telkom Kenya’s subscriber base grew four per cent in the fourth quarter of 2020/2021 to four million.

The telco counts 4,361 fixed internet subscribers, translating to a paltry 0.6 per cent of the fixed broadband market.

General Manager for NEC XON Willem Wentzl said the rollout will enable Telkom Kenya to deliver robust 4G services and compete with peers in the telecommunications sector.