The Luxemburg based telecommunications firm, Millicom International Cellular S.A, has won its bid to become Rwanda’s third mobile phone service provider, according to a press statement issued Tuesday evening.
Millicom which managed to beat stiff competition from world acclaimed telecommunication giants, Telecel Globe, Zain and Larrycom-Expresso, has an invest plan of over US$80 million.
Millicom will hold 87.5% of the equity in a joint venture company with Marathon Corporation and will pay about US$ 60 million for the 15 year fixed and mobile service license.
According to the director general of the Rwanda Utilities Regulatory Agency (RURA), Colonel Diogène Mundenge, Millicom which has since been approved by the Rwandan cabinet, will soon begin negotiations with the regulatory body about the conditions of the license.
Millicom with mobile telephony operations in 16 countries in Asia, Latin America and Africa, is likely to break the duopoly and poor quality services of Rwandatel and MTN.
Mobile penetration in Rwanda is low, at some 9%, and MTN is the dominant operator with around 1 million subscribers.
“The structure of the mobile industry presents Millicom with the opportunity to build a business with a significant market share,” said in part the statement by the telecommunication firm which already has operations in Tanzania and DR Congo.
The Millicom chief executive officer, Marc Beuls, said: “We are very pleased to have been awarded the third mobile license in Rwanda. It is a country with great potential for mobile telephony and will enable us build out a network quickly and economically.”
