Essar, KDN agree on arrears
BUSINESS
By BiztechAfrica - Sept. 24, 2011, 4:12 p.m.
In a dispute over USD1.34 million in arrears, Indian-owned Essar has agreed to pay Kenya Data networks (KDN) USD253 000 upfront and installments of USD62 700 a month to clear the debt and until the dispute is fully resolved.
Failure to pay the first installment within 14 days will result in the agreement lapsing automatically.
The agreement was recorded in the Nairobi High Court this week.
The agreement relates to an outsourcing deal between Essar, owners of Yu Mobile, and KDN. In May, KDN threatened to cut services to Essar, affecting tens of thousands of consumers, unless the arrears were paid.
Essar moved for a court order blocking KDN from interfering with its infrastructure, saying thousands of customers would lose access to voice and data services.
The consent, adopted as a court order, read that KDN would not interfere with the 186 sites of interconnection to the telecommunications industry and would not switch off connectivity.
Operating under its Yu brand, Essar is the smallest mobile operator in Kenya. Despite rumours that the company wished to sell Yu and several changes in leadership, it says ti will continue operating in Kenya and expects to take another two years to break even.
KDN provides carrier services over its fibre-optic network. The company is involved in several major projects, including the greater East Africa project.
MORE BUSINESS NEWS
Yahoo! MEA exec resigns to launch emerging markets social TV
Ahmed Nassef has announced that he has left his role as Yahoo's Vice President and Managing Director for Middle East and Africa to found Telfez. Read MoreSwift Networks acquires DoPC
Swift Networks has acquired the long term evolution (LTE) or 4G business of Direct on PC (DoPC). Read MoreAfrica must think beyond blue collar jobs
Pan-African job creation initiatives need to look beyond basic job creation, to high level ICT skills development, to develop the economies, says Greg Vercellotti, executive director at Dariel Solutions. Read MoreInterswitch moves for growth
Pan-African integrated payment processing and transaction switching company Interswitch has spun off two of its core divisions for growth. Read MoreChina-Africa Development Fund opens industrial park in SA
Electronics firm Hisense has officially opened its new Home Appliances Industrial Park in Atlantis in Western Cape, South Africa. Read MoreUSD100m to support trade finance in Africa
The African Development Bank (AfDB) has formally signed a USD 100 million unfunded Risk Participation agreement (RPA) with Commerzbank AG to support trade finance in Africa. Read MoreRed tape slows business in Africa
The sheer complexity of travelling to many African countries is hampering the roll-out of business there, says Carlos Ferraz, GM of Motorola Solutions. Read MoreAgambire calls on foreign students to bring knowledge home
rlg Chief Executive Roland Agambire has told African youth living and studying abroad they have a moral duty to return to their countries and bring their international knowledge to bear on ongoing reconstruction efforts on the continent. Read MoreIDC: another ‘remarkable quarter’ for MEA tablet market
The tablet market in the Middle East and Africa (MEA) region grew 184% year on year in the first quarter of 2013, says IDC. Read MoreLondon conference to focus on investment in Guinea
Following on from a Mining Code Briefing on 12 June, the ‘Invest in Guinea’ initiative is organising an all-day Invest in Guinea Conference on 13 June in London. Read MoreRELATED STORIES
FEATURED STORY
Airtime transfer big business in Ivory CoastAirtime transferred direct to mobile is proving popular among consumers and is generating jobs in Ivory Coast.
BEST READ NEWS
IN DEPTH
Africa must think beyond blue collar jobsPan-African job creation initiatives need to look beyond basic job creation, to high level ICT skills development, to develop the economies, says Greg Vercellotti, executive director at Dariel Solutions.