Kenya Airways and Airtel sign MVNO agreement - CNBC Africa

Kenya Airways and Airtel sign MVNO agreement

East Africa

by Elayne Wangalwa 0

Airtel and KQ are looking to expand mobile infiltration. PHOTOS: Connect Activist/Live Mint

Airtel and KQ signed a Memorandum of Understanding (MoU) on thursday to deliver an MVNO service for the national carrier once the Communications Authority of Kenya (CAK) approves. The two are looking to expand mobile infiltration as well as provide innovative value added services.

Kenya Airways MVNO will provide mobile services including customer registration, SIM card issuance, billing and customer care to end-users, without holding a spectrum permit while Airtel will provide network infrastructure services.

Airtel which has a presence in 17 African countries will run on the unused capacity on its network, ensuring that it maintains a seamless quality experience for its consumers.

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“We are greatly encouraged by the shared vision with Kenya Airways and the common urgency to find solutions that will enable travelling customers connect to their loved ones and businesses throughout their travel,” Airtel Africa CEO Christian de Faria said in a statement.

In April, Airtel announced that it would host three MVNOs on its Kenyan network.

The role out of the MVNO service by the carrier is part of a tactical course geared at enhancing customer value as well as diversifying its revenue streams.

The national carrier narrowed its pretax loss by 55 per cent to 4.86 billion shillings in its year ended March. This was abetted by a seven per cent jump in revenue and a slight drop in operating costs.

Titus Naikuni CEO and managing director at KQ said, “At Kenya Airways, we are now moving towards a strategic direction that affords us an opportunity to meet our guests’ needs aboard our aircrafts and also extend the same brand value to their communication needs through an affordable option.”

The airline is looking to appeal its boarders seeking a convenient and accessible roaming experience and will rely on its existing customer service and sales infrastructure.

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“Through this partnership with Airtel, we are optimistic that our guests will soon be enjoying a service that allows them better calling rates while in Kenya or roaming within the wide Airtel network,” Naikuni added.

Kenya Airways one of Africa's largest airlines has recorded tremendous growth in revenue and passenger numbers, as well as massive expansion fleet and network of destinations.