{Rather than wait for companies to invest in 4G networks, the government is taking a leading role in expanding internet coverage and developing a knowledge-based economy.
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At the Smart Rwanda Days organised in Kigali last October President Paul Kagame reiterated his belief that broadband should be treated “like a utility” and made “affordable to as many people as we can.”
Broadband is [the] foundation of a knowledge economy
Sixteen months earlier, this viewpoint had helped seal a deal worth $140m with Korea Telecom (KT).
The two parties formed a public-private partnership to build a high-speed internet network with 4G Long-Term Evolution (LTE) services to cover 95% of the population within three years.
The government entered the partnership with KT after local operators did not respond.
Rwanda continues to favour a pragmatic approach to the line between state and market, maintaining a focus on the development trajectory of the economy.
“Plan A was to involve the telecoms operators, but they were reluctant because they had invested heavily in 3G networks.
“They had no incentive to invest in 4G on a large scale. But we were interested in a rapid roll-out across the country, including rural areas,” says Jean Philbert Nsengimana, Rwanda’s minister of youth and ICT (information and communication technology).
Rwanda launched the first commercial phase of its 4G high-speed system on 11 November 2014.
The government/KT joint venture olleh Rwanda networks (oRn) acts as the wholesaler to mobile network operators and internet service providers.
Despite more than 7,000km of fibre-optic cable across the country – of which 4,500km is government owned – only a quarter of Rwanda’s 11.3 million citizens can currently access the internet.
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The government says 4G will change this.}}
As of June 2014, the mobile penetration rate in Rwanda was 68.1%, compared with an internet penetration rate of 25%, although internet penetration grew 10.6% from the first quarter to the second quarter of 2014, according to Rwanda Utilities Regulatory Authority.
“Broadband is there to fast-track business, information exchange, information generation and consumption. It’s a foundation of a knowledge economy,” says Nsengimana.
He added that the network will accelerate the country’s ambition to move from an agriculture-based to a knowledge-based economy. In the last two quarters of 2014 ICT contributed just 2% to Rwanda’s gross domestic product.
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Pricey handsets}}
There are many obstacles to the wide adoption of 4G services. Despite government subsidies, 4G smartphones remain out of reach for the majority of Rwandans.
Currently, more than 98% of the handsets and devices on the Rwandan market do not support 4G.
The government is considering offering tax incentives to suppliers.
It also wants banks to offer micro-loans for smart devices that would be payable in 12 monthly instalments.
The government signed a deal in November 2014 with Brazilian device manufacturer Positivo Informática and its partner BGH Group to start manufacturing and assembling computers and tablets in Rwanda as a way of bringing affordable devices to the market.
Positivo BGH, which will start operations in May, expects to produce more than 700,000 devices in its first year of operations.
Data on 4G networks is also expensive.
Currently, the average retail price for 5GB of data on 4G networks is RWF18,600 ($27.1). Operators charge an average of RWF800 per GB on 3G networks.
However, at current prices, Rwanda’s LTE is the most affordable in Africa, says Ebenezer Asante, MTN Rwanda’s chief executive officer.
“Over time, like all technologies, as scale is gained and affordable routes for deployment kick in, the pricing will fall for the benefit of all,” Asante says.
There are other areas of progress, and the country’s implementation of 4G is running alongside programmes such as the Smart Kigali initiative.
Launched in September 2013, the programme provides free Wi-Fi internet in public places across Kigali, including commercial buildings, bus stations, airports and public buses. ●
Read the original article on Theafricareport.com
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