Rwanda government considers cutting 4G internet costs by 50%

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img:telecomtalkinfo.com
img:telecomtalkinfo.com

After launching 4G intenet in the country in October last year, the Rwandan governemnt is considering reducing the costs by 50% folowing the low adoption rae by the market where they have been complaints of the technology not being economically viable.

The New Times Rwanda reports that the he retail price for the services was determined in three phases which will now be decreased to increase uptake.

The Minister for Youth and ICT, Jean Philbert Nsengimana, said: “In the pricing of 4G, we are looking at three parts. There is a wholesale price, retail price which includes a profit margin and there is a tax part. We are looking to try and cut each of the three parts to be able to try and reduce it by at least 50 per cent.”

Currently, the market pricing of monthly subscription with bundles of up to 100GB costs an average of Rwf350,000, while 200GB costs Rwf690,000.

Altho the minister did not divulge how hey are going to reduce the costs, he revealed that it will be in a way that will not affect the sustainability and profitability of the businesses in the ICT sector so as to attract more investments.

“We are working with the industry to provide and propose services that make unique use of 4GLTE so as to increase its presence on the market,” he said.

Nsengimana added that the price cuts will be accompanied by continued awareness campaigns promoting the service and its benefits to the public.

“The awareness, services, regulatory measures and economies of scale factors (more demand, less costs) will drive up demand and as the foot-print increases, the demand is going to increase in turn, driving the pricing down,” Nsengimana said.