Thursday, May 07, 2009

Rwanda: Rwandatel is expanding in rural areas, going from 61 to 145 antennae and 280,000 customers

[Focus Media] In just four months after it re-launched its operations in the country, Rwandatel continues to expand its network across the country. So far, from 61 antennas that were operational on its launch, the company has already put in place 145 antennas, just short of the 164 that were supposed to in place by the end of April.

Most of the newly erected antennas are located in the rural areas, given that at the re-launch some of those were not covered at all.

According to Patrick Kariningufu, the CEO of Rwandatel, the company aims to have in place 220 antennas by December this year. "The delays have been caused by late delivery of equipment which is imported, but the equipment has now arrived and we have now embarked on the roll-out process," Kariningufu says.

Apart from the network Rwandatel has reconsidered some of its strategies. For instance, it has modified its distribution strategy by dividing the territory into various parts so as to better control the distribution of the company's products in each of them.

Rwandatel is currently holding a door to door campaign upcountry to promote its products and to ensure that clients understand its products, as well as to assess whether they enjoy the cheaper and affordable products from Rwandatel. "We expect that this campaign and proper distribution of Rwandatel products will ensure that our clients will find an airtime selling point at a distance of 150 meters," Kariningufu says.

After retrenching about 120 employees, Rwandatel has so far it has filled 34 managerial positions. "The retrenchment obviously affected the staff's morale; yet it was necessary, since we want to put the right people in the right positions to ensure that the company performs well, especially in customer service, direct and indirect sales," Kariningufu explains.

He further indicates that the company had recruited quality employees who will take the company to new heights. "We were surprised by the quality of the available labor; in fact, 98% of the employees we have recruited so far are Rwandans," Kariningufu remarks.

The process is still going on. Currently the enterprise is recruiting 60 more employees to fill in the gaps left after the retrenchment process. They will be trained to attain the Rwandatel's standards. The company needs to recruit a total of 144 employees this year to supplement the existing 341 employees.

US$ 45m investment

Rwandatel also has plans to hire a European company to optimize its network and improve the quality of voice and data within three months. "Customer service and quality network go hand in hand in the telecom business," Kariningufu says.

This year the company plans to invest US$ 45 million in improving the network and training of its staff to acquire the right skills especially in the marketing department. US$ 70 million had already been spent last year to prepare the relaunch of the network.

Concerning roaming, Rwandatel currently has agreements with companies in Kenya, Uganda and Burundi. Roaming services are expected to begin in DRC by next week, while Tanzania might take a few weeks as a deal is being finalized.

But Rwandatel is also looking further afield; it is currently negotiating a partnership with Telecom Italia, which has over forty networks across the world and which might obviously give Rwandatel customers a wide roaming space.

After only 120 days of operations, Rwandatel already boasts 280,000 subscribers. "This is good progress for the company, as it indicates that we are still in the line to achieve our targets," Kariningufu points out. The target for the end of 2009 is 1.2 million customers.

The CEO added that this month of May, Rwandatel would have some interesting offers for customers. "I can't yet receal what they are, but people can expect three new exiting new products this month."

Rwandatel Goes Door-to-Door to Entice Rural Customers

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