MTN`s rural payphones take off in Rwanda

Johannesburg, 03 Mar 2005

MTN Rwanda`s Tuvugane community payphone initiative, aimed at bringing mobile communication to rural communities, has proved to be even more successful than originally expected.

According to the cellular operator, Tuvugane - which means 'we can all talk` - began with the rollout of some 600 payphones, and a year after the launch more than 1 600 mobile payphones are available in the country`s rural regions.

"The Tuvugane initiative is part of MTN`s drive to increase teledensity in rural areas throughout its operations and put telecommunications within the reach of even those who cannot afford handsets," says Yvonne Muthien, corporate affairs group executive at MTN.

"In addition, this project has created many entrepreneurs who are either running the business themselves or creating employment for others, which is in line with our commitment to empower the communities in which we operate."

She says the Tuvugane service is available in the areas where MTN has coverage, putting telecommunications within reach of 95% of the population living in rural areas.

The way the system works is that rural entrepreneurs across the nation rely on micro-financing assistance from locally based lenders to purchase the Tuvugane payphone and start a personal business of selling airtime units to the local community.

"Within one year the project has produced better than expected results, significantly contributing to bridging the digital divide and contributing to job creation and local entrepreneurship," says Muthien.

"Going forward, MTN Rwanda will further subsidise airtime for the Tuvugane operations, thus enabling resellers to turn an even greater profit."

MTN Rwanda claims that prior to establishing itself in the country six years ago, there were only 20 000 fixed telephone lines, whereas MTN currently already has 175 000 subscribers and is continuing to expand its network coverage in rural areas to promote the Tuvugane project.