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Competition pushes India's Essar Group to sell stake in yuMobile

Michael Malakata | Feb. 3, 2014
India's Essar Group has acknowledged that it selling a stake in its East African operation in order to raise funds to widen its footprint and implement a network upgrade, but details are still unclear.

Last year, yuMobile was dragged to court by Bharti Airtel for non-payment of $3.93 million in leasing fees from a site-sharing contract. Bharti Airtel had leased some 300 sites to Essar for the installation of equipment and was expected to be paid $835,000 as monthly rental charge.

Site leasing is a concept of sharing network facilities among telecom operators and in Kenya it is emerging on the radar of operators keen to cut costs.

Now Bharti Airtel is reportedly in talks with Essar to buy the shares in the company.

 

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