the only option
"We have almost no natural resources and no seaports in Rwanda, which leaves us only with trying to become a knowledge-based society," said Romain Murenzi, the minister of science, technology and scientific research.
The situation came to a head late last year, when government officials contended that Terracom secretly tried to trade its shares in the Rwandan telecom to GV Telecom, a regional African telecommunications company incorporated in the British Virgin Islands. Rwandan officials were furious, saying this was a violation of the contract signed by the two parties.
The plan was scrapped and Wyler was widely criticized. Last month, the government fined Terracom nearly US$400,000 for failing to comply with its licensing obligations, failing to provide information about its operations and failing to pay several fees.
"We decided to penalize Terracom after they failed to fulfill their obligations for a long time," said Beatha Mukangabo, legal officer for the Rwanda Utilities Regulatory Agency. Terracom said it has paid the fines and is working with the government to meet all of its obligations.
Wyler said he has not been involved in Terracom for nearly 10 months and could not comment on its current operations.
Christopher Lundh, Terracom's new chief executive and a former executive of Gateway Communications in London, has worked in several African countries. He now lives and works full time in Rwanda, and many government officials say Terracom's performance has improved under his leadership.
Lundh acknowledged that there were problems with the company's operations in the past. "The former management did make some promises that they were not able to keep," he said. In addition, he said that many of the complaints about the company concerned things beyond its ability to control. Getting adequate bandwidth remains a constant challenge.
satellite service
Like most telecommunications companies in eastern Africa, Terracom depends on satellites for Internet service. Satellite service is much slower than cable because of delays in the signals. Satellites also provide less bandwidth than cable.
Adding to the problem is that most of the satellites serving Africa were launched nearly 20 years ago and are aging or going out of commission. A satellite set to go into service last year blew up on the launching pad. Power is also an issue, as intermittent power failures in Rwanda hamper efforts to provide a steady electricity source.
Despite these limitations and earlier setbacks, Lundh says Terracom is moving ahead with plans to give Rwanda the most advanced Internet infrastructure in Africa. A nationwide wireless connection should begin operating near year-end, he said, about the time a nonprofit group, One Laptop Per Child, based in Boston, is to introduce a US$100 laptop in the country.
And Terracom is continuing to lay fiber optic cables to connect Rwanda to several other African countries, eliminating a need for phone calls and Internet traffic to be routed via European or American networks.
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