Airtel has decided to close its fibre unit in Kenya after operating for two years, citing financial losses as the primary reason. This move impacts the local internet services landscape, as Airtel sought to expand its market presence in Kenya through this venture. The decision comes after the company evaluated the unit's performance and found it unsustainable in the current market conditions.
The fibre unit was launched with the aim of providing high-speed internet services across Kenya, competing with established players in the sector. However, despite efforts to capture a significant market share, the unit struggled to achieve profitability. Airtel's exit from the fibre business highlights the challenges faced by new entrants in a competitive environment dominated by well-established companies.
Industry experts note that the closure may lead to reduced competition in the fibre internet market, potentially affecting prices and service quality. Airtel's decision underscores the difficulties of sustaining operations in a sector that requires substantial investment and infrastructure development.
Looking ahead, Airtel plans to focus on its core mobile services in Kenya, where it continues to hold a significant market position. The company remains committed to enhancing its offerings and exploring new opportunities within the telecommunications sector.
