Airtel is building a network in Rwanda

India’s Bharti Airtel has bought the mobile masts of Rwandan carrier Rwandatel for $15.5m, after the African firm went into liquidation in 2011.

Rwandan authority the Utilities Regulatory Agency revoked Rwandatel’s GSM licence after the company failed to meet its obligations.

Earlier this month Airtel got its operations in Rwanda underway, opting to partner with Ericsson for the deployment. Ericsson will manage Airtel’s Rwandan network from end-to-end, including providing OSS/BSS solutions and managed services.

Last year the Indian-headquartered carrier struck a partnership with NSN to expand, plan and operate its mobile networks in  Madagascar, Malawi, Congo Brazzaville, Kenya, Tanzania, Uganda and Zambia. The Indian operator has also pledged to invest $100m over the next three years, taking its reach in Africa to 17 markets.

Rwandatel was 80 per cent owned by Libyan government company LAP Green Networks, with the remainder owned by the former National Social Security Fund of Rwanda.

Airtel chooses Ericsson or Rwanda project

Bharti Airtel has launched its operation in Rwanda, opting to partner with Ericsson for the deployment, rather than Nokia Siemens, with which it announced a multi-market African partnership in October last year.

Ericsson will manage Airtel’s Rwandan network from end-to-end, including providing OSS/BSS solutions and managed services.Last year the Indian-headquartered carrier struck a partnership with NSN to expand, plan and operate its mobile networks in  Madagascar, Malawi, Congo Brazzaville, Kenya, Tanzania, Uganda and Zambia.

Airtel said that it took just 83 days to build its new network from scratch, claiming it represents the fastest Greenfield launch in history of Sub-Saharan Africa. The Indian operator has also pledged to invest $100m over the next three years, taking its reach in Africa to 17 markets.

Rwandan Prime Minister Dr Pierre Damien Habumuremyi said that the government is looking to partner with the private sector to provide “good quality, accessible and affordable telecommunications services”.

“We are especially excited about the prospect of connecting Rwanda with the rest of the East African region and, indeed, with the rest of Africa. As Rwandans begin engaging in business ventures and looking for regional partners, telecommunications companies – like Airtel – that are able to provide access to a pan-African wireless network, become a crucial part of expansion,” he said.

Manoj Kohli, CEO at Bharti Airtel added that Rwanda represents “an extremely promising market” for the carrier.

According to Informa’s WCIS, mobile penetration in the country was at 41.49 per cent at the end of 2011. According to the World Bank, each 10 per cent of broadband penetration results in a 1.3 per per cent increase in per capita GDP growth in developing countries.

Airtel was awarded the license by the Rwanda Utilities Regulatory Agency (RURA) last year to operate 2G and 3G GSM mobile services.

Rwanda gets its third mobile operator in Bharti Airtel

Rwanda now has its third mobile operator, after Bharti Airtel was awarded a licence to operate 2G and 3G services in the country. The company has pledged to invest a total of over $100 million in Rwanda over the next three years.

The deal sees Bharti Airtel extend its reach in Africa; it now operates in 17 countries across the continent. The company said that its decision to enter the country was because Rwanda is one of the fastest growing telecom markets in Africa. According to the National Statistics Institute of Rwanda, the mobile penetration in the country was 38.4 per cent, as of July 2011.

“We are entering an exciting era in telecommunications in Rwanda, which entails bringing advanced broadband wireless services at more competitive prices and allowing more people in rural areas to access mobile technology,” Dr Ignace Gatare, honourable minister in the President’s Office in charge of ICT.

“We welcome Bharti Airtel to Rwanda and are confident that their experience in operating in emerging markets will add immense value to our telecommunications sector.”

Sunil Bharti Mittal, chairman and managing director at Bharti Airtel, added: “Rwanda is a key telecom market with immense growth potential and will strengthen Bharti Airtel’s footprint in East Africa.”

Luxembourg-based carrier Millicom International Cellular (MIC) said Monday it has been awarded the third national mobile licence for Rwanda.

Millicom, which operates in a variety of emerging markets including neighbouring African countries Tanzania and the Democratic Republic of Congo, said it will own 87.5 per cent of a newly created joint venture firm in partnership with Rwandan firm Marathon.

The joint venture is to pay $60m for the 15 year licence.

Rwanda has some 10 million inhabitants, in a country of about 26,000 square kilometres. Mobile penetration is low at around 9 per cent and the populace is only served by two incumbent operators, Rwandatel and MTN, with market leader MTN counting about 1 million subscribers.

Marc Beuls, president and CEO of Millicom, notes that the Rwandan company can forge some synergies with its Congo and Tanzanian operations and also says that the country has a well developed road and grid infrastructure, which will enable the company to build out a network quickly and economically.

Rwanda becomes Millicom’s eighth African investment, joining operations in Chad, Ghana, Mauritius, Senegal and Sierra Leone as well as Congo and Tanzania.