Rwanda signs 4G internet deal with KT Corp

{{Rwanda on Monday signed a deal with South Korea’s largest telecoms provider KT Corp to roll out high-speed 4G Internet to most of its citizens within three years.}}

Rwanda is landlocked and has laid more than 3,000km of fiber-optic cable since 2009 in a bid to develop a service based economy and become a regional leader in information communication technology (ICT). Critics, however, say almost no large investor has come on board yet.

Rwanda’s economy expanded by 9.4% in the 2011/2012 fiscal year but only around 8.3% of the population have internet access at the moment, according to official reports.

KT Corp will inject around $140 million into a joint venture company, which will be responsible for rolling out a fast 4G LTE broadband network to 95% of Rwandans. Debt and vendor financing will also be needed.

“This agreement with KT marks a major milestone in Rwanda’s drive to become a modern, knowledge-based economy – and by expanding our information infrastructure, we will create jobs, support social progress and propel economic growth,” Jean Philbert Nsengimana, Rwanda’s Minister of Youth and ICT, said in a statement.

The government equity investment in the joint venture, which has a 25-year term, would consist of using its national fiber optic cable, spectrum and wholesale-only operator license.

Rwanda also invited other mobile network operators to invest in the project and provide retail access to 4G LTE wireless broadband services to some 12 million Rwandans.

{wirestory}