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Airtel Kenya 3G, where art thou?

28 Dec Posted by in Kenya, Technology | 14 comments
Airtel Kenya 3G, where art thou?
 

Because of what I do, I tend to hear company announcements, upcoming products, market projections and insider whispers long before they become public. One of those I have followed closely has been talk of Airtel Kenya 3G. If you don’t know what that is, just think of it as a really fast internet connection that is faster than your local cyber. Sometimes

I have been covering the company since it was Celtel; that was three names ago. When the firm rebranded yet again in November 2010 after India’s Bharti Airtel acquired 16 Zain African operations, one of the big announcements was that Airtel Kenya would launch 3G within the first quarter of 2011.

That deadline ended on Thursday March 31st if anybody is wondering.

At the beginning of March, Airtel even signed a deal with (Altech) Kenya Data Networks ’to upgrade its transmission network in readiness for the launch of its third generation (3G) network in April.’ The deadline had been moved once. It would not be the last time.

When the April flew past without a word from Parkside Towers, I asked some suits there what was happening. ‘Just making sure the network is ready for prime time,’ they told me. ‘Sometime around July’ was the new date for the 3G launch. Naturally, that also flew past and Orange launched Kenya’s second 3G network late August.

Discount

Airtel and Orange got their 3G licences at huge discounts. Safaricom paid a neat $25 million dollars (slightly above 1.6 billin shillings at the time) for its licence in 2007. But the CCK became turned philanthropic and cut $15 million dollars from the fee, to the chagrin of Queen Bee. So the newcomers paid ‘only’ Sh750m or so for their licences

But I digress. By the time Orange’s 3G went live, Airtel’s own had been spotted in the wild by many people in Nairobi and Mombasa. It even became semi-official and subscribers started buying bundles on the new turbo-charged speeds. But then, this happened:

Airtel took a break from sending 57 promotional texts everyday (what’s with that?) to talk about ‘optimizing’ its 3G network. It suspended unlimited data bundles for an unspecified period of time. It has not ‘un-suspended’ it to the best of my knowledge.

Intrigues

I was sad to see Rene Meza resign as Airtel CEO in early September and return to Tanzania as Vodacom CEO. I heard it whispered that he had increasingly grown frustrated by the the Indians who didn’t allow him much control and pretty much ran things from India. Not surprisingly, he was replaced by a Bharti expat Shivan Bhargava. He got the job but under a new title: COO. (Another Kenyan company also controversially did away with the CEO position last year in favour of COO and has been on a steady decline since)

By the way, Shivan has not given a single interview since his appointment. Not that we in the media haven’t tried, his handlers just seem keen to shield him from the public eye.

I also gather that the 3G network was in fact ready to launch by September but has been held back for unexplained reasons. Any traces of the 3G service have  since disappeared and I haven’t seen it surface for at least a few weeks. My phone doesn’t pick it up any more. And Airtel remains eerily quiet about it.

What gives?

Update: Airtel Kenya got in touch about the post and said this: Airtel has introduced major innovative business model changes in the last year. Our Networks and IT platforms are positioning themselves for stability and excellent quality. We will focus on being “the best quality network in Kenya” and fully leverage on this to provide our customers with the best quality experience”

Basically, this is PR-speak for saying NOTHING while actually saying something. Oh well



  • http://situma.weebly.com Eva

    Larry, everything has a bad side. It’s not appropriate for you to point out all the negative side of Airtel without bringing in the positives to it.

    Although criticism is called for, It will be kind of you to be objective in your analysis. Please bear in mind that a good number of our population has subscribed to the service and are using it for the good sides.

    • http://www.larrymadowo.co.ke Larry Madowo

      Eva, I think the post speaks for itself in terms of presenting both sides. You cannot deny that Airtel has spent a full year promising us 3G, failed to deliver it and has not bothered to explain why. As you can see from the comments, lots of people have been waiting expectantly from it because that will deepen the competition in that space, and hopefully lead to price drops.

  • http://davidomondi.com David Omondi

    Airtel has been polishing up on a few technical details here and there.The core network will not be able to handle the traffic that will be generated by 3G and that is why you heard complaints of user being disconnected frequently.The company is in the process of ironing this out.The second component of the network reffered to as the Radio Access Network(RAN) is ready and I believe the core network will be as well.The second issue,without sounding racist,is that Indians just have a way of doing things that is very annoying.Their form of bureaucracy is the worst you will ever come across and this could be another reason for the delay.

    • http://www.larrymadowo.co.ke Larry Madowo

      David, you seem to have lots of information that appears credible. Do you work for Airtel?

      • http://davidomondi.com David Omondi

        Not really.I just happen to be in the tech industry where I get a lot of info pertaining to I.T and Telecommunications developments in Kenya and Africa.

  • david

    hy larry i really like your blog.i cant wait for airtel to launch their 3g service,what are you prediction in terms of price and speed!

  • Pingback: OA News: December 29, 2011 – January 8, 2012 (Country-Specific) » oAfrica

  • Edwin Rosana

    Great read this is. Except for that section of Discount. Ever had of a level playing field?? That is what it is all about. By 2001 Safaricom was in Business, Yu for instance came to existence in 2008. Seriously, do you expect them to pay the same rate for the license ??? After one has been in operation for longer even had time to recoup their investment. That’s my take, what do you say Larry before we start looking at case studies ..

  • http://www.twigahost.com Adam

    Not only has orange launched a 3g service but as of 17/01/2012 they are offering an unlimited package. Don’t understand why airtel is dragging its feet when its clear that voice revenues are stagnating and data revenues are going up. Some investigation please!

  • Mackol

    Frustrating as well… today as i write airtel not working on my line, i ported last year and things seemed to be working, but today i am a frustrated client…. Today i cant send neither call worst case cant even reach customer care…. pathetic.

  • Jamleckoh

    actually i think we should b tired of safaricom..being the dominant player they v relaxed in the field providing shoddy services

  • Jamleckoh

    i think by now safaricom should b introducing 4g..considering the evolving market and customers expectation interns of data and internet services.

  • Tedoxie

    i swer i will sue irtel if its the lst thing i will do..this is outright conning of the ordinary people how cn they advertise tht they hve the fastest internet in the country ..so that people buy their modems in droves..then am Nirobi..the heart of keny and stil hve to contend with the second slowest wireless provider internet conection in the country,i men irtel only bets you in speeds…dont they know such dvertising tctics.create losses for consumers?seriosly am suprissed..i hd to do away with my boadband modem yesterday..its totally useless!!

  • Pattnd

    Hi,
    Im based at utawala, Nairobi, but i am unable to accsess any of your services from my office.how can you help’.
    Ndegwa.
    pattnd@yahoo.com