KT to roll out wholesale LTE network in Rwanda

News Wireless Rwanda 11 JUN 2013
KT to roll out wholesale LTE network in Rwanda
The Rwandan government and South Korea operator KT have signed a shareholders agreement to establish a joint venture company to deploy a LTE broadband network to cover 95 percent of the population in three years. KT will bring expertise and make staged cash injections of around USD 140 million, while the government's equity investment in the JV includes assignment of its over 3,000 km national fibre network assets, spectrum and a wholesale-only operator licence. 

Debt and vendor financing will be sourced, to complement these equity contributions. Rwanda's current mobile operators are invited to invest in the project, and it is expected that these companies and other ISPs will provide retail access to LTE wireless broadband services for end-users. The JV was established for an initial 25 years. 

KT Group Chief Strategy Officer Yung Kim said the wholesale network service for mobile broadband will help to promote healthy competition for advanced retail services and solutions, and will benefit consumers, enterprises and the nation. The rapid deployment of high-speed broadband capability in Rwanda will accelerate development of the country's ICT sector, create jobs (including more than 100 professional jobs within the JV itself), as well as help facilitate social and economic progress. Based on recent reports published by the International Telecommunications Union, 95 percent broadband penetration will translate into a 10-13 percent boost in GDP growth for Rwanda. 


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