The Rwandan telecom sector has shown particularly strong
growth in recent years, buttressed by a vibrant economy and a GDP which has
sustained growth of between 7% and 8% annually since 2008. As a result, the
country is rapidly catching up with other markets in Africa, with increased
penetration particularly evident in the internet and mobile sectors.
Although the country was slow to liberalise the mobile
sector, allowing South Africa's MTN a monopoly until 2006 when the fixed-line
incumbent, Rwandatel became the second mobile operator, there is effective
competition among the three current operators, each of which provides wide
geographic coverage. The launch of services from Millicom/Tigo in 2009 sparked
renewed subscriber growth, though competition has eroded mobile services
revenue and ARPU since then.
Rwanda's internet and broadband sector has suffered from
limited fixed-line infrastructure and high prices, but developments in the
fixed network market are improving connectivity and
reliability. The operators are rolling out national fibre-optic backbone
networks which also allow them to connect to the international submarine
fibre-optic cables that landed on the African east coast in 2009 and 2010.
These cables have given the entire region fibre-based international bandwidth
for the first time and brought to an end its dependency on satellites.
Interest from investors in the country's ICT sector
remains strong, particularly during the last few years. An existing deal with
Korea Telecom to build a national fibre backbone was supplemented in September
2013 with a deal by which Korea Telecom will build a national LTE network, for
which it has secured spectrum and an exclusive licence to operate the network
for 25 years.
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