This is picked from my first article of these series last week, where I talked about what the 4G LTE technology means for Rwandans. What I want to tackle in this article therefore is; does 4G LTE therefore make the earlier technologies redundant? I take the view that for the phase of technology evolution attained in Rwanda, LTE complements the existing technologies, makes the portfolio of available broadband services richer and provides more choice for customers according to their needs and means. The projection from Ericsson’s mobility report for June 2014 is that by 2019, 28% of subscribers globally will use 4G and other networks whilst non-4G users will remain the majority. As a matter of fact, 2G technologies (GSM/EDGE) will remain a dependable fallback for both 3G and 4G where coverage is weak or not available at all. The fact also remains that in spite of the very good investments, broadband usage though growing still remains relatively low in Rwanda. This means all the technologies will remain complementary and reinforcing as we push for mass usage. According to RURA sources (www.rura.gov.rw), as at June 2014, Mobile Penetration rate in Rwanda was 68.1% compared to Internet Penetration rate of 25%, though the Internet Penetration increased by 10.6% compared to Quarter 1 2014. There is still a lot of work to be done and hence 4G LTE is expected to contribute its quota in time. Who is the core target user of 4G LTE? 4G LTE therefore satisfies the need of high volume internet and broadband users who are desirous of attaining higher speed than their experience from the existing technologies. By definition and all parameters remaining equal, 4G LTE provides much higher speed and throughput than the existing technologies can deliver. In principle LTE is meant for all broadband and internet users with loads of data-hungry applications. It appeals more to those who have higher volume data needs including contents like heavy video streaming or sharing from areas with 4G coverage and thereby benefiting from higher downloads or uploads speeds. The post-pilot implementation of LTE in Rwanda is in two phases: Phase 1 is to access LTE service in Kigali through wireless devices that are LTE enabled modems and routers. Modems allow a single user to latch onto the service on a laptop whilst the Router enables multiple users of LTE enabled Handsets and laptops to access the service simultaneously like any WIFI/wireless service. There are existing Routers that can carry 10 to 30 users at a go. So to use the LTE service available in some parts of Kigali, all you need to do is to get your LTE Modem or Router, with SIM Card and LTE Airtime or bundle. Phase 2 will be the interworking phase where one can access 4G LTE on any LTE-enabled handset without the intermediation of any wireless device so you can use 4G LTE on the go via a mobile handset. It will work by providing an alternative to 3Gmobile Data service depending on your choice, coverage and availability. This phase is not yet up for implementation. Cost vs. Value Proposition For 4G LTE LTE affordability is a global issue when considering both the cost of the device and relative running cost of usage. To use LTE you need an LTE enabled wireless terminal or handset. Over 98% of the Handsets/devices in the market currently cannot support LTE so you probably have to acquire a new device in order to use LTE. Higher versions of iPhone, Samsung Galaxy and Blackberry may be LTE compliant. The current pricing does not mean LTE has been over-priced in the market but that is the design of the technology globally. LTE-enabled devices are generally more expensive though efforts are being made to launch low end Smartphones that support LTE. Cost is one thing; value derived from the LTE experience and service is another. With the enhanced speed from LTE, value for money is mostly assured. Over time, like all technologies, as scale is gained and affordable routes for deployment kicks in, the pricing will fall for the benefit of all. For example according to GSMA Intelligence analysis on LTE released in November 2013, only 7% of the targeted population in Africa could be covered by LTE but this will jump to 28% by 2017. The ambition for Rwanda is even higher. Thus the price will surely drop with time. It must however be mentioned that the pricing in Rwanda has been set lower than average in Africa where similar deployments have happened. Taking affordability into account, different data plans exist to cater for all income brackets. Another factor to note is the perception of LTE premium pricing due to the fact that more data can be consumed in the short space of time due to the superior speed advantage. GSMA research indicates that LTE users consume about twice as high Data compared to non-LTE users. If care is not taken, the impression is given that LTE service is more expensive all because of the high volume of Data that can be consumed faster. This means LTE pricing and the amount of money one spends on the service must be put in perspective – value derived from speed and the sheer volume consumed per section. The other side of affordability barrier to waive is the terminals and smart-phones that are 4G enabled. Samsung and Apple are among those suppliers with mid and high-end Smart phones, Tablets and Personal Computers. Again this is a global challenge but there exists currently low end 4G Smartphones in Rwanda from Techno Phones. Other low end device manufacturers like Huawei also have competitive offerings in the market. Globally, the push is to have 4G Smartphones at sub-$100 and the good news is that we could be there sooner if the economy of scale can support it. In the next series we will look at the developmental use of 4G LTE and what 4G holds for Rwanda. The writer is the CEO of MTN Rwanda
