Rwanda Telecoms Anticipate Increased Revenues With A Harmonized Tariff, Reports KT Press

KIGALI, Rwanda, Oct. 15, 2014 /PRNewswire/ -- Telecom operators in Rwanda are enthusiastic about the new 'One Network Area' initiative that has set harmonized calling rates in East Africa.

The move is expected to boost revenues and stimulate trade.

Mobile phone users are expected to increase consumption after governments in East Africa imposed over a 60% reduction on roaming rates.

Earlier this month, Rwanda Utilities Regulatory Agency said Telecoms recorded Rwf 36.5 Billion in revenues during the 2^nd quarter. The industry makes up for 8% of Rwanda's economy with indirect contribution in tourism, banking and other services.

MTN Rwanda, owned by MTN Group, a South Africa-based multinational, recorded a marginal revenue. With the rates under the agreement, according to Robert Rwakabogo, MTN marketing manager, there an increase in traffic is expected.

"We (MTN) are expecting a 20-30% growth in our revenues," he said.

Tigo-Rwanda of Millicom International, Swedish telecom, who has been in Rwanda for over 5 years, also recorded impressive figures.

Pierre Kayitana, the Tigo-Rwanda Publicist, said, "The move will have a positive impact as customers will enjoy keeping the same line while on business trips in EAC."

According to RURA's, Airtel Rwanda of India's multinational, Bharti Airtel, which launched early 2012, recorded Rwf 3.7 billion in quarter two.

Meanwhile, MTN's Rwakabogo told KT PRESS that before 2012, telecoms in East Africa were offering a service called 'Home and Away', which allowed all subscribers to use their phone number and use the local tariff of the visited country when traveling in the East African Community.

However, after 2012, some governments in the region imposed higher tariffs on incoming calls and roaming. "This affected the home and away initiative which was later suspended," Rwakabogo said.

He added the new One Network Area initiative has allowed the telecoms to revert to harmonized tariffs and make the region a single, connected market.

The East African Community governments said the initiative will improve trade between their economies and attract more investors into the region, making it an investment hub.

The EAC governments say telecommunications will increase the efficiency of economic, commercial, and administrative activities.

Meanwhile, telecoms in Rwanda have mutually agreed with the Rwanda Utility Regulatory Agency to internally harmonize their calling charges so that all remain compliant to the new policy.

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SOURCE KT Press