Competition Authority approves Safaricom acquisition of fibre optic cable from Bandwith and Cloud Services

    The Competition Authority of Kenya (CAK) has approved the acquisition of fibre optic cable from Bandwidth and Cloud Services Group Limited by Safaricom Limited.

    In a gazette notice, CAK Director-General Wang’ombe Kariuki affirmed the acquisition.

    Bandwidth and Cloud Services (BCS) East Africa was founded in 2010 as a wholesale provider of internet and city to city bandwidth to telecom operators and Internet Service Providers in East Africa. It provides its services mainly in Eastern DRC, Ethiopia, Kenya, Rwanda, Uganda, Burundi and South Sudan with its services currently serving up to 35 million end users in East Africa.

    On the BCS website, Safaricom is listed among clients and partners, proving a glimpse into the service the telco could have experienced to inform the acquisition.

    The fiber infrastructure was first a joint project between the two companies. Through it, they built a 540 km stretch of fiber infrastructure in Kenya that was completed last year. Safaricom later acquired it.

    The 2016 Safaricom’s annual report authors that the telco has so far rolled out 3,236km of own fibre in key metro areas. The report further adds that the company invested sh32.1 billion in capital expenditure. The amount included the 3,236km, modernization and upgrade of 2G networks, investment in 3G and 4G networks, new M-PESA platform and information system upgrades.

    Safaricom’s fixed service revenue grew by 22 per cent to sh3.8 billion due to increased number of fixed customer users to 10,490 up 21.6 per cent. They now have 1,018 commercial buildings as well as 1,795 homes connected to high speed fibre.

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