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IDG News Service

Rwanda set to grant third mobile operator license

Michael Malakata , IDG News Service10.03.2008
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The Rwandan government is set to grant a 15-year fixed and mobile service operator license to a third company in a bid to liberalize the country's telecom market, currently dominated by two players.

"The government is strongly focusing on investment in data, video and voice services, and we are hoping that the new company will boost telecommunication," said Professor Romain Murenzi, minister of education, science, technology and research.

Four mobile service providers -- Globe, Larrycom for Investment, Millicom and Zain -- have emerged as contenders for the third license after evaluation of the companies' bids by the Rwandan Utilities Regulatory Agency.

Zain, based in Kuwait, is the second largest mobile and data service provider in sub-Saharan Africa. Globe is based in Egypt, Larrycom for Investment is based in Sudan, and Millicom has operations in Africa, Asia and Latin America.

MTN Rwandacel and Rwandatel are currently the only players in the Rwandan mobile market, having gained exclusive duopoly rights from the government in 2003. It is still not clear if the companies will be granted new operational licenses when theirs expire at the end of the year.

The third telecom company will be granted a license in December, following approval by the country's lawmakers.

Reprinted with permission from IDG News Service. Story copyright 2008 IDG News Service Inc. All rights reserved.

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