Telkom South Africa has signaled its intention to compete in cellular service provision and the small- and medium-business sector with the rollout of W-CDMA from Chinese telecommunications giant Huawei.

With W-CDMA (Wideband Code Division Multiple Access), Telkom will offer high-speed Internet access, video and high-quality voice transmission. The company appointed Huawei as a technology partner to deploy its fixed-wireless and mobile data network.

"The new technology is addressing customer needs by increasing investment in customer-centric technology that aims to enhance their experience with Telkom," said Motlatsi Nzeku, Telkom chief of operations. "Telecommunication services is no longer just about innovative technologies; it is about matching with customer demand."

Huawei brings to the partnership proven innovation, formidable research capabilities, experience with the speedy deployment of technology in emerging and developed markets, and a highly competitive cost structure, Nzeku noted.

Telkom products have fallen out of favor with small businesses because of the relatively high prices for voice and data calls, which were contributing to high overheads. The company's revenues have also been under significant pressure from declining voice services further impacted by the effects of copper cable theft, Nzeku said.

Nevertheless, Telkom has declared its intention to challenge the domination of the cellular services market by piloting W-CDMA voice services with select customers. It is testing W-CDMA voice services in Gauteng with 38 base stations in the Gauteng metropolitan area and plans to have more than 200 base stations in the Gauteng, Cape Town and Durban metropolitan areas by March 2009.

The company hopes to fully launch its fixed-mobile service by the end of September 2009.

Source:IDG News