Zantel’s fixed line CDMA service promises lower tariffs for end users

27 Jul 2006

Tanzanian alternative telecoms operator Zanzibar Telecom Limited (Zantel), has announced plans to introduce fixed line services based on Code Division Multiple Access (CDMA) technology before the end of the month, in a move that is expected to result in lower tariffs for end users. Zantel hopes to provide voice, internet and data services over the new infrastructure and is initially soft-launching the network with 2,000 customers testing the service. Zantel’s chief commercial officer George Chimalilo said that a full-blown launch is expected in September and hopes to have signed up 4,000 users by the end of the year.

Chimalilo says that the entry level fixed line service will be priced at TZS13,000 (USD10.5) per month, with the addition of home internet access bumping the cost up to TZS26,000. A small business solution is also available priced at TZS65,000 a month, while the premier enterprises solution product costs TZS253,500. In addition, customers must purchase a fixed wire terminal and data card costing around TZS200,000 (USD160). However, on a more positive note, the company hopes users will see a near-50% drop in call prices as users switch from GSM to CDMA technology. ZTE, which supplied the network, says that CDMA is more cost effective because it requires fewer base station sites than GSM systems.