Telkom Kenya slashes price of CDMA modems

A Telkom Orange shop in Nairobi. The firm has reduced the price of its modems to Sh3,999 from Sh4,999. File

Telkom Kenya has moved to reclaim its data market share with a 20 per cent discount on its CDMA modems and a free unlimited Internet offer.

The firm has reduced the price of its modems to Sh3,999 from Sh4,999 in a move aimed at wooing new subscribers. The modems are loaded with free 7-day unlimited Internet.

“The company’s CDMA modem will retail lower than the normal price,” said Maureen Sande, Telkom’s Kenya Chief Corporate Communications Officer.

The offer comes against the backdrop of a decline in Telkom Kenya’s fixed internet subscribers occasioned by changing consumer preferences for mobile data where the modem applies.

In the three months to September 2012, Telkom Kenya’s fixed internet market share dropped to 9,670 subscribers from 10,908 in the previous quarter.

In the wireless fixed-line segment where the firm provides the service through CDMA technology, the number of subscribers declined to 117,910 in September from 141,580 the previous year.

Wananchi Group now controls 41 per cent of the fixed wireless market share followed by AccessKenya at 16.5 per cent, Telkom Kenya at 13.8 per cent and Safaricom at 9.6 per cent.

During the period under review, mobile data/internet subscriptions rose 10.2 per cent to 8.4 million from 7.4 million in the previous period.

Telkom Kenya’s Orange brand also targets to boost voice presence through low-cost handsets retailing at Sh1,999 bundled with airtime worth Sh200.

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