Rwandatel and Huawei Technologies have signed a RFW19.2 million (USD35 million) network expansion contract. The agreement is reported to include GSM equipment which will allow the fixed line telco to branch into the wireless arena for the first time, in competition with established cellco MTN Rwanda.
According to TeleGeography’s GlobalComms database the Rwandan government announced plans to sell 80% of Rwandatel in September last year. Six companies expressed an interest in the sale, namely Vodacom of South Africa, Celtel (now part of the Zain Group), V-Tel Holdings of Jordan, Bit Map (Singapore), LAP Green Networks (Libya) and Rwanda’s R-Com. The following month the Libyan company was announced the winner, with its bid of USD100 million (of which USD50 million was paid up front, and will be followed by four instalments of USD12.5 million on a six-monthly basis). LAP Green has committed to investing USD87 million in its first year, and a further USD177 million over five years.