With the shift away from the single wholesale network (SWN) model in 2022, Rwanda’s mobile broadband landscape has transformed dramatically. In just two years since reversing the SWN approach, 4G penetration in Rwanda surged from 2% to 30%. This move to open-market competition has accelerated mobile broadband adoption, driving more affordable and accessible 4G services for Rwandans. Rwanda’s recent broadband progress offers a compelling look at the advantages of fostering multi-operator participation in telecom market.
How it started?
In 2013, Rwanda established its mandated SWN, issuing a 25-year license through a partnership between the government and Korea Telecom – Korea Telecom Rwanda Networks (KTRN). This agreement granted KTRN exclusive spectrum rights in the 800 MHz band to deploy 4G nationwide. The intent behind the SWN was to accelerate 4G rollout and increase accessibility, while aiming for a 95% coverage goal. The coverage target was achieved by June 2017.
However, overall, the results of this monopoly-based network were mixed. While KTRN reached nearly complete 4G coverage by 2019, actual 4G adoption rates in Rwanda lagged considerably, standing at just 2% by the start of 2023, far below the Sub-Saharan Africa (SSA) average. The SWN model, intended to improve accessibility, had paradoxically become a bottleneck. Operators were restricted from deploying their own 4G or 5G networks, relying solely on KTRN’s wholesale services. This lack of competition kept 4G prices high, limiting adoption and stifling the market for faster mobile internet.
The shift to open market competition
Recognising these challenges, the Rwandan government updated its National Broadband Policy and Strategy in 2022, reversing its commitment to the SWN approach. This shift included introducing technology neutrality, allowing mobile operators to refarm spectrum bands so they are used simultaneously for several technologies, including 4G and 5G, in a way that maximises the efficient use of spectrum and meets market demand for new services. To further support this change, additional spectrum in the 700 MHz, 900 MHz, 1800 MHz, and 2100 MHz bands was allocated, creating opportunities for multiple operators to deploy advanced networks. The regulator also initiated plans to free up the 800 MHz spectrum to be reassigned after KTRN’s reconfiguration, broadening spectrum access for further infrastructure development.
The adoption of 4G services increased significantly post-2022, as more mobile operators entered the market with competitive offers. Rwanda’s mobile broadband adoption rates began climbing toward SSA average, indicating clear demand for affordable 4G services in the market. Although KTRN still provides wholesale 4G services to MVNOs, uptake through these channels remains limited, further emphasising the need for competitive options.
Figure 1: 4G market penetration in Rwanda and Sub-Saharan Africa, 2021-2024
Source: GSMA Intelligence
Rwanda’s connectivity progress as a case for competition
The growth in 4G adoption after 2022 highlights the benefits of open-market competition. Despite KTRN’s extensive network coverage, the SWN model could not achieve a meaningful uptick in adoption. Competition, however, has proven effective in driving down prices, improving service quality, and expanding access, resulting in Rwanda’s significant connectivity improvements. Infrastructure competition, rather than restrictive monopolies, is proving to be a far more effective model for promoting both access and affordability.
The case of Rwanda provides compelling evidence of the benefits of enabling competition and encouraging private sector investment in the telecommunications sector. The growth of mobile broadband adoption, and with it the social and economic development of Rwanda, depends on collaboration rather than intervention. By fostering a competitive environment, Rwanda has set a precedent for other countries to follow in their quest to enhance connectivity and drive development.