The mobile telecommunications sector continues to offer unprecedented opportunities for economic growth in both developed and developing markets, allowing for mobile services to become an essential part of how economies work and function. In developed markets, according to a survey by Deloitte, recent years have seen booming usage in mobile data services accessed via smartphones, tablets among other devices. Mobile data has changed consumer expectations for wireless services products and has transformed the way in which people connect and work, which has the potential to further impact economic development. For the most part, basic mobile services still dominate and mobile data is the next wave of advancement. In Rwanda, however, beyond calls and text messaging, telephones are used for money transfer, content streaming, advert and connectivity and internet surfing among other purposes. Regardless of the type of mobile phone people use – basic, feature or smart – a mini-survey conducted by The New Times indicated similar views about how their lives and societies have been impacted by their devices. Like elsewhere, user’s attitudes toward mobile phones tend to be largely positive. The majority say mobile phones have been good for them personally, and many also say mobile phones positively impact education and the economy. Mobile phone users also overwhelmingly agree that their phones help them to stay in touch with faraway friends and family and keep them informed of the latest news and information. Numbers on the rise, despite low rate The total number of active mobile-cellular telephone subscriptions in Rwanda increased up to 10,735,734 at the end of March-2021 compared to 10,638,787 at the end of February-2021, representing an increase of 0.9 percent. As a result, the mobile cellular telephone subscriptions per 100 inhabitants increased by 0.8 percentage points from 82.1 percent to 82.9 percent. The postpaid subscriptions rose from 90,861 at the end of February, 2021 recorded at the end of March of the same year. Prepaid subscriptions increased to 10,643,383 as of March, 2021 compared to 10,547,926 reported at the end of February, 2021. Despite a low-level of smartphone penetration that remains as low as 20 per cent, Rwanda looks to technology and innovation to achieve its aspirations of becoming a knowledge-based economy by 2035. For instance, the country recently rolled out “Connect Rwanda”, a development that aims at among others driving smartphone penetration and bridge the country’s digital divide, particularly in rural Rwanda. With digital transformation being continuously positioned as a key enabler for the country’s development agenda, access to digital gadgets, among other factors, remains a challenge. This has seen investors venturing into alternatives like mobile financing to spur the uptake. Elsewhere The sub-Saharan Africa (SSA) mobile phone market is expected to reach a compound annual growth rate of 4.6 per cent, compared with 3 per cent globally between 2019 and 2025, according to analyst GSMA Intelligence. By the end of 2018, the SSA region had 456 million unique mobile subscribers, a number that is expected to jump by a further 167 million by 2025. The main driver of the projected rise is demand picking up from a low base, looking at the fact that mobile phone penetration rate in SSA stood at 44 percent compared with 66 percent worldwide at the end of 2018. The region also lags behind other parts of the world in terms of mobile broadband adoption. In September 2019, 4G accounted for only 9 percent of total connections in the SSA region and 2G for 46 per cent. By comparison, 4G made up 50 percent of total global connections while 2G made up less than 25 percent, according to GSMA Intelligence. “In terms of subscriber growth, large, under-penetrated markets such as the Democratic Republic of Congo, Ethiopia, Kenya, Nigeria and Tanzania present the biggest opportunities,” noted Kenechi Okeleke, senior manager at GSMA Intelligence. “These five countries will account for half of the total number of new subscribers over the period to 2025. SSA has a number of highly competitive markets, with several comprising five or more operators. However, there are outliers such as Ethiopia, where incumbent Ethio Telecom still has a monopoly,” he added. For maximum digital penetration to take place, Charles Gahungu, General Manager of ICT Regulation Department at RURA, said in an earlier interview that it requires different mechanisms and interconnected technological activities to take effect. For instance, if device penetration is still low that means that a larger number of people have not yet adopted available digital services, he said. “A person with a smartphone is exposed to digital knowledge and access to digital services. If I am able to make payments online, access bank services online, it’s because I have a smartphone.” He noted that considering the financial capacity of citizens and the cost of these gadgets, many don’t have the means to immediately buy them. Another important issue remains the gap in digital literacy in the country, especially in rural areas. While one can quickly learn the basics of using a smartphone, it requires some significant knowledge to navigate through advanced digital services by using the gadget. Gahungu emphasized the role that improved education will play in digital transformation in the long-term. He said that in the coming years, a person who will have at least primary level education or ordinary level secondary education, they will be in a better position and knowledgeable enough to manipulate digital technologies. On these issues, different interventions were made by the government and stakeholders to increase digital literacy and provision as well as the adoption of digital gadgets. Launched in 2017, the Digital Ambassadors Programme, locally known as Intore Mu Ikoranabuhanga, is an ambitious plan in which the Government targets to introduce five million citizens to digital literacy and opportunities through the use of e-Government and e-Business services. Another key effort is the ongoing Connect Rwanda Challenge – a campaign that seeks to mobilize people to contribute to providing smartphones to Rwandans who cannot afford them is expected to drive up access to smartphones. Since its inception, Connect Rwanda programme has majorly focused on different segments of the population; the unconnected, female farmers, persons with disabilities, individuals in categories 1 and 2 of Ubudehe, among others. Experts say that with relevant pricing, it would be a win-win scenario for all parties involved as producers would see growth in sales of their gadgets consequently driving up revenues. Cost of production per gadget would go low as they leverage economies of scale.
