MTN Rwanda plans to invest $100 million to improve rural access and increase internet broadband services in 2009 to counter competition.

The operator aims to increase its one million customer base by 700,000 new users this year, by dropping rates and increasing coverage.

MTN has over one million customers in the tiny central African country, representing a 90% market share over its only rival Rwandatel.

Speaking to Reuters, MTN chief executive Themba Khumalo said the company would make feasible Rwanda’s ambitions of becoming an ICT hub.

The vision of transforming Rwanda into a regional ICT nucleus has been restrained by expensive satellite connections.

MTN Rwanda has laid over 200km of fibre-optic cable around the capital Kigali in preparation for connection to the Eastern Africa Submarine Cable System (Eassy) in September 2010.

South African-based MTN Group holds 55% of the Rwandan operation while Rwandan investment group Tri-Star owns 35%. The remaining stake is in the government's hands.