Telkom Kenya plans shutdown of CDMA network by end of April

Corporate News

Telkom Kenya Orange staff displays a CDMA/GSM dual sim phone. The telco will at the end of April switch off its CDMA network that has served as a wireless version of its regular landline service. PHOTO | FILE 

By JAMES KARIUKI

In Summary

• The move will lead to losses for CDMA phone users since their gadgets will become obsolete given that they are not compatible with the GSM network.
• CDMA network was introduced to counter the Global System for Mobile Communications (GSM) technology with its key market being homes and in offices.
• Fixed lines subscriptions have, however, registered a long-term decline despite Telkom’s rivals like Safaricom joining this niche market with desk phones powered by GSM network.

Kenya’s oldest phone operator Telkom Kenya will at the end of this month switch off its CDMA network that has served as a wireless version of its regular landline service.

The firm, which trades under the brand name Orange, communicated to its customers the decision to terminate the Code Division Multiple Access (CDMA) service effective April 30.

“Kindly visit your nearest orange shop to have your line migrated to our GSM network,” the notice reads.

The move will lead to losses for CDMA phone users since their gadgets will become obsolete given that they are not compatible with the GSM network.

Telkom assured its customers that they will be allowed to maintain their old numbers after the swap from the CDMA infrastructure to the GSM technology.

The CDMA network was introduced to counter the Global System for Mobile Communications (GSM) technology with its key market being homes and in offices.

Fixed lines subscriptions have, however, registered a long-term decline despite Telkom’s rivals like Safaricom joining this niche market with desk phones powered by GSM network.

Statistics from the Communications Authority of Kenya (CA) show that fixed wireless lines stood at 132,017 in December, down 7.5 per cent from 142,760 in September.

The fixed line numbers are expected to drop even further with the cancellation of the CDMA service.

READ: Telkom loses landline users in shift to mobile phones

While CDMA and GSM are virtually matched in terms of voice and data capabilities, the latter has been the most successful in the local market.

Telkom’s CEO Vincent Lobry was quoted as saying that the switchover from CDMA to GSM was necessitated by rapid technological changes.

“CDMA is fast becoming obsolete around the world and the maintenance of the same will not be a simple affair for any telco in the mid and long term.

This switchover will allow us to focus our strategic effort on the advancement of GSM technology in this market,” he said.

The collapse of CDMA spells another major setback for Telkom Kenya after a well-planned move by its French owner France Telkom to sell its 70 per cent stake to Viettel Group flopped on major disagreements with the Kenya Government which holds a 30 per cent stake.