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Telkom Kenya loses 800,000 subscribers following a dispute with tower partner

Telkom

Telkom Kenya, the country’s third-largest telecommunications company, has lost around 800,000 subscribers in the past three months, following the actions of the American Towers Corporation (ATC), which turned off network towers. Telkom’s mobile user base had decreased to 1.3 million by December 2023.

ATC deactivated 246 Telkom towers in February 2023 due to overdue leasing costs, exacerbating a two-year conflict. By October 2023, Telkom Kenya’s debt had increased to KES 7.1 billion ($51.7 million).

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According to Business Daily, ATC demanded an upfront payment of KES 500 million ($3.6 million) and a monthly fee of KES 150 million ($1.09 million) to reactivate the towers, but Telkom claimed that financial difficulties prevented it from meeting its debt obligations.

Before ATC acquired 723 towers in 2018, Telkom Kenya owned and managed them. At the time, the telco stated that the move would “enhance the quality and reliability of our network to benefit our customers.”

As of June 2023, ATC Kenya had 3,643 towers statewide, including nine dispersed antenna system sites.

Techrectory with Agency Report.

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