Rwanda telecom market continues to develop strongly, market research shows
A market research report showing a comprehensive overview of trends and developments in Rwanda’s telecommunications market has been updated by the Market Research Hub (MRH).
The report entitled, 'Rwanda - Telecoms, Mobile, and Broadband - Statistics and Analyses' and updated on 19 April 2018, shows that the Rwandan telecom market continues to develop strongly, buttressed by sustained GDP growth which has seen the country develop into one of the fastest-growing economies in the world. Supported by significant foreign aid, this growth has been helped by prudent fiscal and monetary policies which have created a business-friendly environment conducive to investment.
The report says that although Rwanda was slow to liberalize the mobile sector, allowing MTN a monopoly until 2006 when the fixed-line incumbent, Rwandatel (since acquired by Liquid Telecom) became the second mobile operator there has been effective competition among the three current operators, each of which provides wide geographic coverage.
The launch of services from Tigo in 2009 sparked renewed subscriber growth, though competition has eroded mobile services revenue and Average Revenue per User (ARPU) since then. However, the acquisition of Tigo by Airtel, a deal to be closed over a two-year period, will see the Tigo brand removed and a significant consolidation in the market.
It says Rwanda’s internet and broadband sector has suffered from limited fixed-line infrastructure and high prices. Nevertheless, operators are rolling out national fibre-optic backbone networks which also allow them to connect to the international submarine fibre-optic cables on the African east coast.
These cables have given the entire region fibre-based international bandwidth for the first time and brought to an end its dependency on satellites. During 2018, Liquid Telecom has continued to expand its FttP services across Kigali and a number of other towns.
Interest from investors in the country’s ICT sector remains strong. A deal with Korea Telecom has developed a wholesale LTE operator, Korea Telecom Rwanda Networks, which provides retail services to a number of fixed-line operators as well as to the mobile network operators. The number of subscribers on LTE infrastructure increased 200% in 2016, year-on-year.
The report contains an overview and analysis of Rwanda’s telecommunications market, profiles of the major players in all market sectors, relevant statistics and analysis, and mobile subscriber forecasts to 2023.
It gives details of key developments in the market including MTN to invest $20 million in network upgrades; Millicom sells its Tigo Rwanda unit to Airtel, with the Tigo brand to be phased out; government commits to investing in smart city infrastructure; MTN Rwanda fined for moving IT services abroad; Liquid Telecom expands FttP network; fleet of buses equipped with LTE routers to provide mobile broadband for passengers; regulator calls for interested parties to manage Mobile Number Portability facility; MNOs implement One Network Area scheme removing roaming charges; Smart Africa Alliance Initiative to raise $300 billion by 2020 for regional ICT infrastructure; KTRN expands wholesale LTE services; report updates include the regulator’s market data to February 2018, telcos’ operating data to Q4 2017, Telecom Maturity Index tables, charts, and analyses, recent market developments.