Rwanda: Terracom and MTN to Tussle Over ISP Deal
allafrica writes……Terracom and MTN Rwandacell are set to compete for the provision of internet services in the country, after a two-year contract that the government signed with the former expired amid squabbling, The New Times has established. Inside sources at RITA told The New Times that the contract signed between Terracom and…
Rwanda Information Technology Authority (RITA) in December 2004 came to the ‘much-awaited end’, last month, “with most government institutions and members of the public dissatisfied with the company’s performance.”
The sources further said that the dismal performance by Terracom prompted government to notify other internet service providers including MTN Rwandacell, to bid for the multimillion Franc deal that involves providing data communication to all government institutions. And, already word doing round is that MTN is poised for the mega take over.
Though also new in the data provision business, MTN Rwandacell remains the only local ISP capable of handling a mega deal like the one on offer, and, Moses Bayingana, the National Coordinator NICI Implementation Programme at RITA seemed to confirm what already looks a looming certainty.
“The contract with Terracom has expired and good enough, as anticipated, MTN has just started offering internet services. We did it for two years, knowing that after that period, another provider would be in place,” Bayingana told The New Times at his office Thursday.
According to RITA, the country has been facing internet problems mainly because Terracom was enjoying a monopoly.
“As a client I always want the best. The provider may also give his reasons. I wouldn’t say ‘yes’ but given the fact that he was a monopoly, that limited us,” Bayingana said.
He added: “RITA has written to Terracom to come and start negotiating on new contract terms but RITA is also aware that now, it’s not only Terracom but MTN as well. We need to look at both with the aim of getting the best.”
But other sources that talked to The New Times doubt MTN’s capacity if it scoops the deal.
Already, they argue that the MTN internet service on mobile phones that began mid last year, is lacklustre.
“Those using their services say it is always impossible to download photos or pictures using the MTN internet cards,” the sources told this reporter.
And, asked whether RITA was convinced MTN would succeed where Terracom had encountered problems, Bayingana was also equivocal.
“As of now, we have not said we are going with MTN. There is even a possibility of going for both. It depends on how the negotiations will go. Our technical teams will sit down, analyze and the best way forward shall be determined,” he said.
But pundits say that even engaging both companies is likely to cause more confusion. They claim that the two companies have previously ‘fought’ each other, with MTN at one time maintaining a blockade on Terracom-MTN calls until the latter opted for a gentleman’s settlement.
Further still, word doing the rounds is that MTN is yet to give Terracom the green light to begin using its established SMS line for the latter’s subscribers to begin sending and receiving short messages.
