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Finance / Kenya

AccessKenya Consolidates To Reduce Operating Costs

June 2011 | Corporate Financing Analysis

Kenyan ISP and IT solutions provider AccessKenya has combined two of its subsidiaries into a single operating entity in a bid to introduce a more effective management structure and reduce or contain operating costs. New regulations permit it to do this and give the company the potential to offer a broader range of converged services in the future. However, the move comes as a response to intense competition and underscores BMI's long-held view that price wars can be as destructive to service providers as they are beneficial to consumers.

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