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Africa’s Rural Mobile Connectivity Made Profitable for Telecom Operators.

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Africa’s Rural Mobile Connectivity Made Profitable for Telecom Operators.

Huawei’s RuralStar Solution makes the communication dream come true for people in rural areas of Africa.

With 100% coverage in urban areas across the continent, competition to retain and/ or grow user bases is fierce for mobile operators. At the same time however, more than 50 percent of the continent´s population, remains unconnected, because they live in rural areas that lack access to voice, internet and digital services that include mobile finance, eEducation, eGovernment and eAgriculture.

For mobile operators that are exploring rural rollout strategies, the cost constraints are currently quite inhibitive. It is estimated that the average cost per rural site is upwards of $100 000 in CAPEX and an estimated $9 000 OPEX per year. This coupled with low population density (2000 to 5000 people per site) and lower than ARPUs, results in longer return on investment (ROI) cycles that extend to ten years (and beyond).

Huawei’s RuralStar solution leverages cutting edge technology innovation by removing the requirement for 30 – 60 metre towers with 12 – 18 metre iron poles. These are not only easier to transport, but reduce passive infrastructure cost by approximately 80 percent. In addition, instead of using microwave transmission (as you would in a traditional deployment); Relay, which uses LTE spectrum, is utilising non-line of sight (LOS), which saves on expensive satellite costs and lowers tower height requirements. And finally, as half of total cost site spends on equipment power consumption due to lack of reliable power grid forcing to use diesel, the solution makes use of solar power to reduce OPEX to almost zero.

The solution has been piloted in three rural sites, each covering between two and four kilometre areas, and a population of 3 000 people. The result is an average 220 erl on voice services and 800MB per day from each site.

Based on the current usage rate (as above), the operator realised 70 percent reduction in total cost of ownership (TCO) and 3 year ROI cycle, vs a traditional rural site.

It is this pilot that prompted the operator to build hundreds of rural sites across the country, based on the Huawei RuralStar solution, of which, 100 will go live in the second half of 2017, with other markets to follow.

Operators have, for the first time, got the opportunity to construct the low cost sites and in so doing, provide connectivity and digital services to more people living in rural and remote areas.

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Innocent Kawooya, NIM, is an award-winning Ugandan entrepreneur, media innovator, digital transformation leader, and the Chief Executive Officer of HiPipo. He is widely recognised for his contribution to digital innovation, financial inclusion, youth empowerment, healthcare, education, media, and technology-driven social transformation across Africa. He is a recipient of the prestigious Presidential Diamond Jubilee Medal awarded by His Excellency, the President of Uganda, in recognition of his contribution to national development, digital innovation, and financial inclusion. He is also recognised as the first Ugandan under the age of forty to receive a National Independence Medal from the President of Uganda for his outstanding contribution to digital innovation, financial inclusion, youth empowerment, and national development. Innocent Kawooya has further been recognised as FinTech CEO of the Year (Middle East & Africa) for 2024 and 2025, while HiPipo has received multiple continental recognitions, including Most Innovative Financial Inclusion Organisation in the Middle East & Africa. From his school days, Innocent Kawooya served as Head Prefect, Head Boy, Chairman of Writers and Debating Clubs, where he developed a deep passion for storytelling, journalism, public speaking, and influence. Since then, he has written and contributed to hundreds of thousands of articles, stories, opinion pieces, digital campaigns, and media publications focused on technology, finance, entrepreneurship, innovation, healthcare, entertainment, and social transformation across Africa. He is widely recognised as one of the pioneers of Africa’s digital media and social networking space, having co-led the development of HiPipo.com, probably Africa’s earliest social networking platform. Through the platform, he helped shape digital conversations and online communities across the continent at a time when social media adoption in Africa was still in its infancy. Over the last two decades, Innocent has championed major initiatives in digital financial services, healthcare innovation, renewable energy, youth empowerment, media, and creative industries. His work through initiatives such as Digital Impact Awards Africa (DIAA), Include Everyone, Women in FinTech, My Doctor, Solar M7, and HiPipo University continues to influence and empower millions of people across Africa and beyond.