KIGALI, RWANDA -- As competition in the telecom sector intensifies, Rwandatel is dropping the Code Division Multiple Access (CDMA) mobile phones from the market.

 The telecom company is giving out free 3G, System for Mobile (GSM) technology enabled phones to its former CDMA subscribers.

The move has excited the market, resulting into long queues forming at most Rwandatel's sales points where the phones are being distributed.

"Many subscribers are rushing for the free 3G enabled phones before the one month in which they are to surrender the CDMA ends," said Jean Paul, a sales representative of Rwandatel at Nyamirambo, a suburb of Kigali.

  Mzee Antoine Bwimba was among the 30,000 subscribers who were using CDMA phone and has now changed to a more flexible 3G technology.

Clenching his newly acquired GSM enabled T201 phone, Bwimba said with the CDMA, he would not access some of the telecom services because CDMA does not use SIM cards and, besides, its coverage was limited.

Rwandatel's move to discard CDMA technology has been interpreted by telecoms players as a strategy to stave off the growing competition in Rwanda's telecom industry and grow its subscriber base. The Rwandan market has two more players: MTN Rwanda and TIGO.

Whereas Rwandatel looks to have up to 600,000 subscribers by June and 1.2 million active subscribers by the end of the year, MTN is targeting 2 million subscribers.

Rwandatel has invested around $ 72 million in equipment and agents to help increase its subscriber base.

"We would like to increase the mobile penetration rates in this country," Patrick Kariningufu, chief executive officer Rwandatel said.

MTN Rwanda dominates the market, partly for being the oldest mobile phone company in the country.

MTN also uses GSM technology while TIGO, the new entrant in the market, is expected to start with the same technology.

TIGO operates in Tanzania and the Democratic Republic of Congo, offering GSM, GPRS and the EDGE technology.