The Government of Rwanda and KT Corporation, South Korea’s largest telecommunications provider, have signed a shareholders’ agreement to establish a Joint Venture (JV) Company to deploy a high-speed (4G LTE ) broadband network to cover 95% of the population in three years.
As principal shareholders, KT will bring expertise and make staged cash injection of around $140 million, while the Government’s equity investment in the JV includes assignment of its extensive national fibre optic network assets, spectrum and a wholesale-only operator license.
Rwanda’s current mobile network operators are invited to invest in the project, and it is expected that these companies and other ISPs will provide retail access to 4G LTE wireless broadband services for 12 million end-users.
The JV, established for an initial 25 year term, was co-signed on behalf of the Government of Rwanda by Clare Akamanzi (CEO of Rwanda Development Board) and on behalf of the President nad Group Chief Strategy Oficer of KT Corporation, Yung Kim and ratified by and Hon. Jean Philbert Nsengimana who is the Minister of Youth and ICT.
This project will work at an advantage to Rwanda’s growing economy because since the genocide tragedy the country has made tremendous improvement in their economic development.
This rapid deployment of high-speed broadband capability will accelerate development of the country’s ICT sector. It will not only create jobs in the country but also improve the relationship between South Korea hence promoting foreign policy which includes proving market, labor goods and services, education materials and facilities for both South Korea and Rwanda having a win, win situation for both countries.
Based on recentreports published by the International Telecommunications Union (ITU), 95% broadband penetration will translate into a 10 to 13% boost in GDP growth for Rwanda.
KT and Rwanda will also seek opportunities to extend the business model of this JV to neighboring countries. Deployment is expected to commence later this year, after further detailed planning.