First CDMA operator launches Uganda operations

The first Code Division Multiple Access (CDMA) mobile telephone operator in Uganda, I-telecom has launched its operations in Uganda’s highly competitive telecommunications market – bringing to six the number of mobile telephone operators.
I-telecom has initially invested some US$30 million in its Uganda operation, which apparently covers only half of the country from east to west according to Augustine Mulenga, the chief executive officer of the company.
“Our investment will rise to more than $100 million over the next 18 months when we hope to have expanded coverage to reach the entire country,” Mulenga said in an interview.
Mulenga said I-telecom is anchored on the latest CDMA platform which performs faster than the GSM platform. All the other five operators operate on the GSM platform, which seems to be the preferred platform in this part of the world.
“We promise our subscribers that we shall bring to them the best products and services in voice and data networks and solutions,” Mulenga said.
Mulenga said I-telecom will employ the more powerful and high performance EVDO technology that also enables high speed wireless broadband connectivity.
I-telecom has been testing its service with about 1,000 subscribers for the last eleven months from across the country from the east to the west.
Mulenga said that their company was way above other players in the market because of the technology they are using.
I-telecom has apparently entered the market with the cheapest call offerings on the market today. While a call especially on the large players today costs about 20 US cents at peak hours at, I-Telecom has come into the market with a call costing about 12 US cents at peak time.
He added that I-telecom has been testing its services with about 1,000 customers for the last 11 months from the East to the deepest end of Western Uganda.
“We have certainty of service from where the sun rises to where it sets across the south and central Uganda. We shall steadily roll out to the rest of the country,” Mulenga said.
Asked how he intends to survive in a brutal market that analysts have described as saturated, Mulenga said there was still room for business.
“See Uganda has a population of more than 30million. And about 55% of this population is actively working but the telecom industry is just jostling for 8-10million people. It means that we have an opportunity to command and bring on board customers that other operators have not been able to attract,” Mulenga said.
I-telecom is a joint venture between local Uganda investors with investors from southern Sudan, where they run the pioneer mobile service provider Gemtel.
While CDMA has been the dominant network standard for North America and parts of Asia, its take up of preference has been limited with almost a few mobile phone networks in the region running on the GSM standard.
In Kenya, it is only Orange/Telkom Kenya that runs on the CDMA standard while in Tanzania, it is only the national operator Tanzania Telecommunications Corporation Limited (TTCL) that runs some of its services on the CDMA standard.
As I-telecom commences its operations, another provider, Sure Telecom from South Africa is waiting in the wings readying itself for launch.