Govt, Korea Telecom sign deal to build 4G network

South Korea’s largest telecom company, Korea Telecom, has entered into an agreement with Rwanda to deploy a high-speed (4G LTE ) broadband network across the country that will see Rwandans access fast, reliable and cheaper Internet services. The high speed wireless broadband technology comes at a time when Rwanda has laid more than 3,000 kilometres of fibre optic cable countrywide that seeks to boost access to various broadband services, including applications such as e-governance, e-banking, e-learning and e-health. Breaking barrierThe joint venture between the Government of Rwanda and Korea Telecom was signed, yesterday, and it includes a cooperation framework agreement that will see the success of the infrastructure registered within the next 25 years. The agreement says Korea Telecom will inject $140m (about Rwf91 billion) in infrastructure and expertise, while government will provide fibre optic network assets, spectrum and a wholesale licence. Addressing a news conference, Yung Kim, the Korea Telecom chief strategy officer, said the 4G LTE project will cost about $260 million (about Rwf169 billion) within a period of five years. “We have $140 million cash but, we shall look for financial support from banks and other sources to reach $260 million,” he said. The project targets to cover 95 per cent of the population within three years, according to the joint venture deal that is based on an initial 25 year term. Yung said: “We believe a nationwide broadband based on 4G LTE technology is the key foundation for Rwanda’s ICT development. Building 4G LTE network for wholesale is a unique and innovative way to achieve faster broadband coverage that will enable Rwandans to access high speed Internet services, anywhere, anytime.” Rwanda’s mobile network operators have been invited to invest in the project, and it is expected that the companies and other Internet Service Providers (ISPs) will provide retail access to the end users. Korea Telecom and Rwanda will also seek opportunities to extend the business model of the 4G LTE joint programme to neighbouring countries. Rwanda is the first country in Africa to have entered into a joint venture with Korea Telecom to rollout 4G LTE infrastructure across the country. The deployment is expected to start later this year. Jean Philbert Nsengimana, the minister for youth and ICT, said the 4G LTE is unique in a way that it provides high speed Internet which will enhance business transactions and other services in the country. “This is for our country and our people. The project will create jobs for our people, innovation, entrepreneurship and enable our country achieve knowledge based economy,” Nsengimana said. He said people will access the Internet services through their smart phones and 4G LTE enabled modems provided by retailers. “We shall ensure that it becomes affordable, reliable and accessible to people,” he said.Promote competitionAccording to Korea Telecom, 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. “Korea Telecom looks forward to actively participating in this great opportunity and is excited to be able to partner with the Government of Rwanda to bring this plan to fruition.” Clare Akamanzi, the acting chief executive officer of the Rwanda Development Board, said: “Rwandan citizens and businesses must have access to the tools that will enable them to seize the opportunities of the digital age and none is more important than fast, reliable and accessible broadband.” “We are pleased to partner with KT in this unique initiative to make available high-speed broadband to all Rwandans.”Last year, the International Telecommunication Union (ITU) report ranked Rwanda among top 10 countries in Africa with active mobile-broadband subscriptions per 100 inhabitants. The State of Broadband 2012 report, under the theme, “Achieving Digital Inclusion for All,” was the first-ever country-by-country snapshot of the state of broadband deployment worldwide. According to ITU, 95 per cent broadband penetration will translate into a 10 to 13 per cent boost in Growth Domestic Product growth for Rwanda. The country currently relies on three submarine fibre optic cable systems for Internet connection such as the East Africa Submarine Cable System, The East African Marine Systems and Seacom through local telecommunication companies and Internet Service Providers (ISP’s). The Internet service providers in the country include MTN Rwanda, Tigo, Airtel, Broadband Systems Corporation, New Artel, Altech Stream and Rwandatel. ITU estimates that 2.7 billion people–or 39 per cent of the world’s population–will be using the Internet by end of 2013.

National

Govt, Korea Telecom sign deal to build 4G network