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Telkom Kenya signs GSM deal with Ericsson

Wed 7 May 2008, 14:37 GMT
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NAIROBI, May 7 (Reuters) - Telkom Kenya signed a 9 billion shilling contract on Wednesday for Ericsson <ERICb.ST> to supply equipment for its mobile telephony roll-out.

"Ericsson's global experience and knowledge of Africa in launching start-ups convinced us they are the ideal partner for our GSM network rollout," Dominique Saint Jean, chief executive of Telkom Kenya, told reporters.

"The mobile network will complement the fixed line service. They will reinforce each other."

A consortium led by France Telecom <FTE.PA> bought a 51 percent stake in the east African country's landline services monopoly, which has 280,000 subscribers, in November 2007.

The mobile GSM service will be launched at the start of the fourth quarter of this year and will be marketed under the French firm's Orange brand.

France Telecom plans to target two thirds of the country's population who are not yet covered by mobile service, as well as existing subscribers who may want to switch networks.

Ericsson, the world's biggest mobile network maker, will deploy an EDGE technology-ready system in 18 months time. (Reporting by Duncan Miriri, editing by Will Waterman)

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