Rwandatel now switches to GSM

Rwanda’s fixed line operator — Rwandatel — has switched from its traditional CDMA (Code division multiple access )-based technology to GSM (Global System for Mobile communications) technology in a move that could see the company’s mobile subscribers increase by over 90 per cent.

With Millicom Telecommunication’s Tigo brand set to open shop in Kigali by the end of 2009, this could mean that the country’s teledensity could also rise from 11 per cent to 18 per cent in just a year.

The launch of Rwandatel’s GSM operations with an investment worth $71 million, in a deal involving Huawei Technologies — a Chinese private high-tech telecom company — means that Rwandatel will now compete favourably with MTN Rwanda, which has operated GSM for over 10 years.

Rwandatel has been operating CDMA technology, which officials say cost the company dearly and trailed behind MTN Rwanda, with only 50,000 subscribers.

CDMA is a network technology that supports less than 20 per cent of the world’s telecom companies with voice communication. On other hand, GSM is a wireless standard utilised by over 80 per cent of the world’s telecom operators.

There are camps on both sides that firmly believe either GSM or CDMA architecture is superior to the other.

CDMA networks all over the world support over 270 million subscribers. GSM on the other hand tallies up its score with over one billion subscribers.

However, both boast of 3rd generation (3G) technologies.

With CDMA, Rwandatel required proprietary handsets that are linked to Rwandatel network only.

The Rwandatel handsets were not card-enabled and, therefore, not user friendly for pre-paid services.

Rwandatel subscribers find it had to upgrade their CDMA phones, as technologically they could not return them back to the carrier for deactivation.

The old phone would also become useless, in case it is deactivated for a new one.

Since Rwandatel’s CDMA subscribers were holding phones that are not card-enabled, they were also finding it hard to roam when travelling within the region because the phones did not have this capability.

On the other hand, MTN Rwanda early this year introduced a roaming product called “Home and Away” in which it partners with Safaricom of Kenya, MTN Uganda and Vodacom of Tanzania.

Rwandatel officials have not ruled out any possibility of a roaming agreement with Uganda Telecom (UTL) since LAP Green — a Libyan consortium that owns 80 per cent of Rwandatel — also has a 69 per cent stake in UTL.