KT to Respond to the Rwandan Government's Counterclaim of $386 Million Regarding 4G Networks

The controversy surrounding the end of Rwanda's wholesale monopoly model, which is supported by KT, is intensifying. The Rwandan government has filed a countersuit for $386 million, alleging that KT has violated the terms of the agreement between the two parties.

South Korean telecom operator KT Corp stated in a document on Friday that in the dispute surrounding the termination of its wholesale monopoly, the company is facing a countersuit of $386 million from the Rwandan government. KT claimed that this claim amount is equivalent to 2.6% of its shareholders' equity and is calculated based on "unilateral assumptions" made by the Rwandan government.

According to this document, this claim is based on the assertion that KT has violated its obligations under the agreement with the Rwandan government. KT indicates that it will strongly dispute this amount calculation during the arbitration proceedings at the Permanent Arbitration Court and defend its position.

This conflict originated in 2023 when the Rwandan government decided to introduce competitors for KT Rwanda Networks ( KTRN ). The two parties had previously established KTRN in 2013 as a 4G wholesale operator, with KT holding 51% of the shares and the Rwandan government holding 49%. At that time, this telecommunications company was granted the exclusive right to use an 800MHz frequency band nationwide.

However, in October 2022, the Rwandan government announced a new national broadband policy that terminated this exclusive arrangement. This monopoly officially ended in July 2023. KT subsequently filed a lawsuit, requesting the execution of a put option worth approximately $152 million, on the grounds that the Rwandan government revised the terms of this 25-year franchise agreement halfway through the investment period.

KT states in the document that the counterclaim on the part of Rwanda was filed on behalf of the Rwandan government, the Rwanda Development Board (RDB), the Social Security Council, and the country's sovereign wealth fund AGDF Corporate.

Regardless of whether the decision to abandon the single-network (SWN) model is legally sound or fair, from the perspectives of competition and practical outcomes, this adjustment has been successful. The revised broadband policy has eliminated the (SWN) model, opened up new resources in the 700MHz, 900MHz, 1800MHz, and 2100MHz frequency bands, and allows for the reclamation of spectrum.

According to a study by GSMA in 2025, this change led to Rwanda's 4G adoption rate rising from 2% to 30% in just two years. The study stated that the SWN model, which was intended to improve accessibility, actually became a bottleneck. Although KTRN achieved a coverage rate of 95% by June 2017, the adoption rate was still far below the average level of Sub-Saharan Africa.

GSMA indicates that operators are restricted from deploying their own 4G or 5G networks and can only rely on the wholesale services provided by KTRN. This lack of competition has kept 4G prices high, limiting user adoption and also hindering the development of the faster mobile internet market.

As of June 30, Rwanda has 14.5 million mobile users, which is approximately more than 100% of its total population. Among them, MTN Rwandacell and Rwanda Airtel occupy 64% and 36% of the retail market share respectively.