Orange officially launched its mobile business in Kenya today, changing the name of the operator from ‘Telkom Kenya’ to ‘Orange Kenya’ and pledging to sign-up 1.5 million customers within a year (from around 500,000 currently). Orange-owner France Telecom acquired 51 percent of Telkom Kenya for US$390 million in December 2007. In a statement, Orange said it would become “the first integrated operator in the country, proposing fixed and mobile telephony alongside Internet services.” It said that broadband Internet and mobile offers will initially only be available in the cities of Nairobi and Mombassa, but will be progressively extended and rolled out across the whole country by the end of the year. Orange has reportedly struck a roaming deal to use market-leader Safaricom’s network to ensure a nationwide service while it builds its own infrastructure. Orange adds that it has invested €58 million in the network since the beginning of 2008.

According to Wireless Intelligence data, Safaricom – which is 35 percent owned by Vodafone – controls 86 percent of the Kenyan mobile market with just over 12 million connections by end of second-quarter 2008. The only other player, Zain Kenya, has 1.9 million connections. However, competition in the market is set to increase. As well as the launch of Orange Kenya, a specialist 3G operator – Econet Wireless Kenya – plans to launch in the country soon.