The One Network platform, built by Celtel before the company was bought by the Zain Group, allows users to travel across borders without paying mobile roaming charges.

Should Airtel be able to pull off the mobile money transfer service, the company will have succeeded where Zain failed. When Zain had bought Celtel, the company initiated plans to leverage its 'One Network' platform to launch mobile money transfers across East Africa, but the service was never launched.

The new Airtel Money service needs to be by the Bank of Uganda and other central banks. Mobile money has picked up hugely in Kenya and Uganda, with Safaricom and MTN Uganda the leaders in this new segment of the telecom industry. To provide these services, players are entering partnership agreements with money transfer service companies. Recently, the MTN Group signed a partnership agreement with Western Union to enable its customers to receive and send money anywhere in the world.

Before Zain sold its Africa operations, it had launched its own ZAP mobile money transfer service in Uganda, Kenya and Tanzania. ZAP has struggled in the shadow of Safaricom's M-Pesa and MTN's Mobile Money services in Uganda and Kenya. Airtel, however, has said it is ready to compete in the money transfer market.

"The technology is not a problem. We are now discussing with the regulators (central banks) about cross border mobile money transfers," said Philip Onzoma, head of Airtel's Uganda business. Onzoma spoke just after Airtel had inked an agreement with United Assurance Company (UAP), one of East Africa's largest insurance companies, to enable the insurer provide more options for payment of insurance premiums and claims recovery via Airtel Money.