Nairobi — Telkom Kenya Wednesday gave a strong signal of its intentions to give Kenyans another mobile telephone service when it signed a Sh8.9 billion (93 million Euros) deal with Swedish telecommunications company, Ericsson.

Under the deal, which includes equipment and services under a Build Operate Transfer (BOT) agreement, Ericsson will immediately commence the roll out of all core GSM network components.

They include base transmission stations (BTSs) and switches to provide a GSM network with national coverage.

Speaking during the signing ceremony held at a Nairobi hotel, Mr Dominique Saint Jean, Telkom Kenya chief executive, said Ericsson's market-leading technology and global experience won them over.

"Combined with their knowledge and experience in Africa as well as expertise in launching start-ups convinced us that they are the ideal partner for our GSM network rollout," he said.

The GSM network to be deployed by Ericsson comes with an up-to-date GSM network functionality which will allow Telkom Kenya to provide voice and data services. cost of Sh26.1 billion.

Ericsson, a provider of both 2G and 3G mobile technologies, supplies communications services and manages networks that serve more than 185 million subscribers.