Allied Technologies (Altech) will offer broadband services to Rwandan businesses and consumers by the fourth quarter of the year, taking its first step to execute its strategy to operate broadband networks on the African continent.
Subsidiary Altech Stream Rwanda has won a licence to deliver broadband Internet access services in Rwandan cities, says Altech Stream Rwanda GM Henk Basson.
Basson would not disclose the fee Altech Stream paid for the licence, or the initial capital outlay set aside to provide broadband offerings in Rwanda. However, he says it is a substantial investment.
The licence allows Altech Stream to deliver broadband services using WiFi, WiMax and dedicated spectrum in the 2.5GHz, 3.5GHz and 15GHz bands, the company says in a media statement.
The licence also includes rights for Altech Stream to install its own satellite earth-station for direct connection to the World Wide Web and to build terrestrial infrastructure, says Basson.
Altech Stream has not made a decision as to whether it will build its own terrestrial infrastructure or use government-owned infrastructure. Negotiations are still ongoing, he says.
Pent-up demand
Altech CEO Craig Venter says broadband services to be offered in Rwanda include access to the Internet, e-mail services and value-added Internet service provider (ISP) services.
"Pent-up demand is evident among customers in the business and consumer segments, while government and foreign institutions in educational, diplomatic agencies and embassy offices have indicated their need for quality Internet-based services," he says.
BMI-TechKnowledge senior analyst Richard Hurst says Rwanda has a population of roughly a million people. There is a limited uptake of Internet services due to several factors such as the high cost of connectivity and the lack of penetration of terminals or PCs.
"Reports are that DSL services are being rolled out, but the uptake has been limited due to cost."
Altech Stream expects to compete with fixed-line incumbent Rwanda Telecoms, MTN Rwanda and a number of smaller ISPs to capture market share, says Basson. "We would like to dominate the market we play in."
He says while Altech is launching its African broadband offerings in East Africa, the sub-Saharan Africa market also remains of key interest to the company.
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