Tuesday, September 16, 2008

Telkom Kenya to unveil mobile service this week

By James Ratemo

The stage set for stiff competition in the telecommunications sector this week as Telkom Kenya officially unveils its mobile telephone service.

The company becomes the fourth entrant into the cellular sub-sector after the two well-established players, Safaricom, Zain and another newcomer, Econet Wireless.

With a war chest of more than Sh8 billion, the company will rollout the network in Mombasa and Nairobi, but will eventually cover the whole country.

In an exclusive interview with The Standard on Monday, Telkom Kenya CEO Dominique Saint Jean promised to give his competitors a run for their money with affordable cross network tariff rates alongside its other services.

firm’s services

"Telkom Kenya offers a fixed wireless service using CDMA technology, our entry into Global System for Mobile (GSM) will boost our profile in the cellular market and we are lucky since we will benefit from the latest technology," said Jean. The company, the former sole fixed line operator, is also set to unveil its commercial brand this week.

"We will address all segments in the market and we are signing network interconnection agreements with other GSM cellular operators. From our GSM and CDMA network, calling across networks will be cheaper as compared to other operators," he said.

The fixed-line operator applied for the mobile licence last year and went on to sign an agreement with Ericsson, the Swedish telecommunications giant, as the sole equipment supplier for its ambitious GSM network.

"This new venture reflects a strong commitment by Telkom Kenya to deliver superior communication experience to customers and will pave way for healthy competition in the cellular market. We will focus on quality service in order to survive the anticipated stiff competition," said Jean.

labour force

A latecomer in a market that is already crowded, Jean said, the company has a lean labour force of 3,000 employees down from 17,000 a year ago and 6,000 in December.

"We will retain our landline network especially in the rural areas where majority of low income earners live and in urban centres where there is no vandalism," he said.

"We believe there is strong demand for GSM, fixed line and broadband offered as one package."

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