Rwanda Telecommunications Sector Performance Review 2007

Rwanda
and potential return requirements are critical issues. The option of leasing
circuits from any backbone provider is considered feasible. Similar
arrangements exist already with microwave circuits leased from Terracom
and MTN Rwandacell. The company is heavily invested in satellite
connectivity and is planning to acquire around 100 MBps bandwidth to
serve their ISPs as well as government and non-government institutions.
The company will also invest in terrestrial network backbone in order to
reach out its customers. The key issue is the regulatory changes that are
needed to introduce horizontal licensing in order to facilitate the emergence
of wholesale and retail markets.
Conclusion and
Recommendations
The overall performance of the sector can be characterised by two major
aspects. Significant progress has been made both in policy and regulatory
reforms that locate ICT as an engine for poverty eradication as a
whole and a catalyst for socio-economic development across the various
sectors of the economy in particular. Important issues and challenges to
increase access, penetration and usage of ICT, however, remain across
the various segments of society.
The reforms adopted have seen a number of changes in the telecommunication
market with the entrance of new players and introduction of
new technologies and services to meet market demands. Public and private
investment in network infrastructure development have significantly
increased and are expected to grow over the coming five years
within the framework of the NICI II Plan.
Accessibility indicators shown in this report, however, remain very low
despite the emphasis on increasing accessibility and usage of ICT in the
country. The major reasons for such gaps are primarily related to the
high cost of setting up network infrastructure and its maintenance, particularly
in the current context of shortage of electricity that leads to the
high price of access as well as usage, especially for mobile and internet
services.
Rwanda Information Technology Authority (RITA) has begun a dialogue
with major telecommunication operators initiated by government, which
aims to define an innovative model of sharing network infrastructure.
This sharing model is expected to reduce considerably the cost of network
access and therefore will allow new service providers to enter into
play with the hope that the price of usage will decrease, thereby increasing
the number of users providing services especially in remote areas.
The NICI II Plan has ambitious programmes and projects to support the
increase of ICT access and usage around the country. The main target is
to allow the central and local governments to communicate through ICT
means in order to enhance good governance as well as to provide efficient
services to the general population through Internet based applica-
38 2007 Telecommunications Sector Performance Review