Rwandatel - First Divestiture

cancelled

In October 2005, the government of Rwanda completed the sale of 99% stake in Rwandtel for US$20 million to Terracom Communications, a Jersey-based IT services provider. Rwandtel was the fixed line incumbent provided, which also provided long distance services. As part of the privatization package, Rwandtel was granted a GSM license. The remaining 1% was held by the National Post Office, Rwandan Development Bank, Sonarwa SA, Caisse Sociale du Rwanda, Rwandex SA and Tabarwanda SARL. The privatization process of Rwandtel began in February 2004. Terracom won the stake in Rwandtel in an international public tender in which two other bidders participated. Terracom, an IP provider, already hada fiber backbone network centred on Kigali (the capital) and a wireless broadband network. The government urged Terracom to speed up plans to provide mobile-phone services, providing much needed competition to the expensive monopoly provider, MTN-Rwandacell. In July 2007, the government bought back the 99% stake in Rwandatel for US$12 million. In October 2007, the government sold 80% of Rwandatel to LAP Green Com for US$100 million.