Four Firms Bidding for Rwanda's 3rd GSM License

Four companies have been shortlisted to bid for Rwanda's third mobile license, the Rwanda Utilities Regulatory Agency (RURA) has announced. Thirteen companies had purchased tender documents from the regulator, but most chose not to submit a formal bid.

The four shortlisted firms are Sudan based Larrycom for Investment, Millicom International, Zain and Orascom Telecom controlled, Telecel Globe.

Figures from the Mobile World note that MTN Rwanda ended the first half of this year with some 834,000 subscribers - and the country penetration level lingers at just under eight percent. The government has previously said that it wants to see mobile penetration rise to 60% by 2012 as part of a program of upgrading the country into an ICT hub for Eastern Africa. 

South Africa based MTN Group recently concluded an agreement to purchase a further interest in MTN Rwanda, increasing its shareholding to 55% from 40%. Recently MTN Rwanda launched seamless roaming services with MTN Uganda, Safaricom in Kenya and Vodacom in Tanzania.

A Libyan company, Lap Green Networks won a tender to buy 80% of Rwanda's Rwandatel after agreeing to pay US$100 million and invest a minimum of US$87 million in the network within one year of completing the transaction. The government's Social Security Fund will retain its 20% stake.

In related news, the regulator recently fined MTN Rwandacell some US$127,000 for allegedly providing poor services since the beginning of this year. MTN Rwandacell CEO, Themba Khumalo said MTN has already paid the fine and said that the GSM network has since been upgraded.

Posted to the site on 3rd October 2008