Nairobi — Millicom International Cellular has finally gone live as the third national mobile operator in Rwanda, with a initial capital investment of about $50 million.

MIC launched its Tigo brand on November 12 with the deployment of 2G, 3G and 3.5 technologies.

The Luxembourg-based telecoms firm secured the licence for just over $60 million, beating a strong challenge from 17 companies -- including Zain and Telecel Globe (Orascom) -- that had expressed interest in the bidding process in October last year.

It had an immediate presence in over 50 per cent of the country's 30 districts.

Tigo's entry broke a longstanding duopoly by powerful entities MTN Rwanda and Libyan-owned Rwandatel, intensifying competition for local market share.

"Tigo plans the best prepaid plan in the market with the most affordable rates to call at any time and to any number in Rwanda with 100 per cent per-second billing, at Rwf1.50 (0.26 US cents) per second," Alex Kamara, the company's chief executive officer, said.

Tigo will also introduce scratch cards of as little as Rwf300 (52.72 US cents), added Mr Kamara.

The Rwandan government has decided to sell its stake in MTN Rwanda, according to the Rwanda Utilities and Regulatory Agency, but the company already boasts more than 90 per cent of the country's mobile subscriber base.

Launched Christmas package

Just days before Tigo was unveiled, MTN Rwanda, which launched its per-second package in 2006, cut its call rates by 22 per cent -- from Rwf1.67 (0.29 US cents) per second, or Rwf100 (17.57 US cents) per minute, to Rwf1.3 (0.23 US cents), or Rwf78 (13.71 US cents) per minute.

The following day, it launched its Christmas package.

Yvonne Makolo, MTN Rwanda's top marketing executive, said: "This is the lowest rate seen in the [Rwandan] market."

But Tigo's commercial director, Marcelo Aleman, said the company would not seek to offer promotional tariff packages since it was targeting the most affordable rates.

Rwanda's telecoms industry has one of the highest tariffs in Africa.

Beat giants to licence

Millicom had to beat to the licence included the giant Neu Venture Group, the German Consortium, ADC Financial Service and Econet Wireless International.

Tigo has operations in the Democratic Republic of Congo and Tanzania. Rwanda is its eighth network in Africa.