By Joan Wangui
THE NEW TIMES

Terracom Communications, a leading IT provider in the country, has finally taken over the management of the state-owned telecommunications giant, Rwandatel, in a US$ 20 million privatisation transaction.

The Finance Minister Dr. Donald Kaberuka and the Chief Executive Officer of Terracom Greg Wyler Thursday June 16, signed the Share Purchase Agreement, giving Terracom 99% shares of Rwandatel. The privatisation exercise kicked off in February 2004, with three communication companies bidding for Rwandatel.

In his speech, Kaberuka reiterated that the privatisation of Rwandatel to Terracom was timely, “coming at a time when Rwanda was leading the region in innovative technology”. The Minister also noted that the privatisation of the management of Rwandatel was an opportunity for the country to invest in modern technology as well as create employment for Rwandans.

“I am optimistic that Terracom will expand telecommunications and reduce prices to its respective customers and Rwandans at large,” he said.

Led by Wyler, officials of Terracom said that their company emerged winners due to their superior technology that includes fibre optic connectivity, which is ‘fast, viable and cheap’.

Wyler also said his company had ‘superior technology solutions’ which “make Rwanda the hub of information technology through wireless connection network,” he said, adding that the IT infrastructure in Rwanda combines data, voice and video.

“Rwanda is developing a knowledge-based economy and Terracom is behind it. We provide the lowest communication costs in Africa and this is expected to reduce even further,” Wyler disclosed.

“This is something that Rwandans have been yearning for; an IT infrastructure that is easy and affordable. Rwanda has the largest fibre backbone in the region, stretching to an approximate one thousand kilometres,” Wyler noted.

Stressing that Rwanda was the first country in Africa to implement the Passive Optical Fibre Network, the American investor added that there are thirty five locations in the country, covered by over 140 km of fibre optic network.

“Fibre optic network is the fastest, lowest and most reliable method of communication,” he added.

Wyler said that Terracom had offered a large number of Rwandan nationals an opportunity to work and use their skills in the country’s massive communication network, noting that all fibre is installed by Rwandans.

He also noted that the company has enabled customers to build friendly and business relationships throughout the world through free phone calls.

“Cheap communication enhances business, hence boosting productivity,” he said.

The Director General of the Rwanda Investment and Export Promotion Agency (RIEPA)Williams Nkurunzinza disclosed that it will take about three months for Rwandatel to hand over its assets to Terracom.

The colourful ceremony was also graced by Hong Liang Lu and Scott T. Ford, CEOs of giant telecommunications companies UTStarcom and Alltel Communication, respectively, who Wyler said, were committed to boosting modern technology.