Executive summary
The aftermath of the 1994 genocide and a monopolistic market structure until 2006 have weighed on the Rwandan telecommunications sector, but the country is now rapidly catching up with other markets in Africa.
Mobile market penetration is still significantly below the regional average. The country has been slow to liberalise the sector, allowing South Africa’s MTN a monopoly until 2006 and licensing a third network (Millicom) only at the end of 2008. The prospect of intensified competition has sparked a new subscriber growth phase with over 100% per annum, but at the same time the average revenue per user has fallen below US$10 per month.
The fixed-line incumbent and second mobile operator, Rwandatel has launched third generation mobile services, with MTN expected to follow shortly. Both Rwandatel and MTN are rolling out national fibre backbone networks which also allow them to connect to international submarine fibre optic cables on the African east coast. Seacom, the first such cable landed in July 2009, giving the entire region fibre-based international bandwidth for the first time and bringing to an end its dependency on satellites.
These developments will revolutionise Rwanda’s Internet and broadband sector which has suffered from limited fixed-line infrastructure and high prices. The price for international Internet bandwidth is expected to plummet to a fraction of the current level. Several ISPs are rolling out WiMAX wireless broadband networks. They have adopted VoIP Internet telephony although the technology has not yet been officially deregulated, which potentially turns them into converged fixed-wireless voice and data/broadband service providers. Both MTN and Rwandatel have also adopted WiMAX to complement their mobile data services.
Rwanda is also a key partner in the One Laptop per Child (OLPC) project and has a major e-government program.
This report contains an overview and analysis of Rwanda’s telecommunications market, profiles of the major players in all market sectors, relevant statistics, and scenario forecasts to 2010 and 2015 for the country’s mobile market.
Key highlights:
- Market analysis 2009;
- Mobile market forecasts to 2010 and 2015;
- Comparison with other countries in the region in terms of GDP, mobile, fixed and Internet market penetration;
- Third mobile network has entered the market;
- Subscriber growth at more than 100% pa;
- ARPU has fallen below US$10 per month;
- National fibre backbone network rollouts;
- Connection to international submarine fibre optic cables achieved via neighbouring countries;
- Profiles of major players in all market sectors.
Mobile penetration in Rwanda and other countries in the region – March 2009
Country
| Mobile penetration
|
|---|
Kenya
| 49%
|
Tanzania
| 31%
|
Uganda
| 31%
|
Rwanda
| 17%
|
DRC
| 13%
|
Burundi
| 7%
|
(Source: BuddeComm based on various sources)
For those needing high level strategic information and objective analysis on the telecommunications sector in Rwanda, this report is essential reading and gives further information on:
- One of the fastest growing mobile markets in Africa;
- Government policies affecting the telecoms industry;
- Market liberalisation and regulatory issues;
- Telecoms operators – privatisation, acquisitions, new licences;
- Internet and broadband development and growth;
- Mobile data services and pricing;
- Average Revenue per User (ARPU).
This annual report provides a comprehensive overview of trends and developments in Rwanda’s telecommunications market. Subjects covered include:
- Key statistics;
- Market and industry overviews;
- Regulatory environment and structural reform;
- Major players (fixed, mobile and broadband);
- Infrastructure development;
- Mobile voice and data markets, including 3G;
- Average Revenue per User (ARPU) trends;
- Internet development and pricing;
- Broadband, including 3G mobile;
- Convergence (voice/data, fixed/wireless/mobile).