In Kigali, telcos eye non-voice segments
The East African 18:09 12-Apr-14
In Rwanda, the country's leading service providers are banking on
non-voice segments to diversify their products and drive growth.
MTN, Airtel and Tigo are jostling for Rwanda's 11 million people, with
MTN leading in terms of market share with 3.6 million subscribers.
Tigo and Airtel have two million and 950,000 respectively.
The three telcos are now stepping up investments in cross-border
mobile money services which is becoming lucrative, and data services
to reduce their reliance on the voice market that is registering less
profit.
The telcos are taking advantage of their regional subsidiaries to
cement their cross-border mobile money services.
Airtel -- one of the biggest telecom operators in the region with a
presence in four of the five countries in East Africa -- has been
trying to dethrone MTN. Thirty per cent of MTN's subscribers are
registered on mobile money platform.
Tigo on the other hand is the leading player when it comes to mobile
money business, with 37 per cent of its subscribers using Tigo cash as
at the end of last year.
READ: Tigo launches mobile money service that converts cash
Pierre Kayitana, the spokesman at Tigo Rwanda said the firm is
expanding its operations to digital operations like online delivery.
Rwanda's Internet penetration is currently estimated at 12.2 per cent,
representing an increase of 27 per cent as of June this year, mainly
driven by mobile data.
However, the country lags behind its counterparts in the East African
region apart from Burundi, which has an Internet penetration rate of
3.9 per cent.
Kenya leads at approximately 41.1 per cent, Uganda's stands at 17 per
cent while Tanzania's is 14 per cent.
Operators are counting on a rise in mobile subscriptions, currently
estimated at 60. 9 per cent, to grow their market share of data
penetration.
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