[ 2015-11-11 ]

Chief Executive Officer of the ICT Chamber Paul Adom Otchere

ICT Chamber to pay $83m to retain LTE
Members of the Ghana ICT Chamber are prepared to
pay government $83 million to keep the LTE
business in the hands of indigenous companies,
B&FT says its sources reveal.

"B &FT sources close to the Chamber can confirm
that it (the Chamber) is preparing a proposal to
help absorb – the $83 million deficit that the
Communications minister, Dr. Omane Boamah
mentioned during an interview on an Accra-based
local FM station yesterday - in order that the
LTE space is retained by local interest", the
newspaper reports Wednesday.

At the close of the bid last Monday, four
companies MTN, ARAB company, Surfline and Gold
key, had submitted bids.

This follows controversy over the decision by the
National Communications Authority (NCA) to sell
LTE spectrum, which is the next-generation ICT
technology powering 4G Internet, to Mobile Network
Operators (MNOs) that are mostly foreign- owned in
the country.

Paul Adom Otchere, Chief Executive Officer of the
Chamber told the B&FT: "This next generation of
telcos is a most prized asset that the state must
keep and retain for indigenous companies only".

LTE is the next-generation ICT technology powering
4G Internet today. It supports and creates
Internet-based applications that make voice
crispier and clearer, data transfer faster, and
video captured in real time as well as limitless
other possibilities.

Currently government has issued three licences to
local indigenous companies — Surfline
Communications, Goldkey Telecoms and Blu Telecoms.
These have rolled-out or are in the process of
rolling- out 3 LTE-based operations, having
invested about $200 million.

Government's offer to these Ghanaian companies was
under the 2600 MHz frequency. With the advent of
digital migration, the 800 MHz frequency has
become available for usage as an LTE platform
rendering the same services as the 2600 MHz.

The new 800 MHz system is better, faster and
easier to deploy nationwide than the 2600 MHz.
Business and social activities or services will
now be faster and better with massive LTE support.
Health research will be faster, political
governance will be more effective, media
activities will be more diverse, and very
effective transmission of data and voice will
support education.

Government in 2013 promised to reserve the LTE
licence and its opportunities to indigenous
companies in a strategic step to nurture a
Ghanaian-owned LTE industry.

The local companies, on the back of this promise
and intent, have raised debt and equity to invest
over $200 million in the industry.

As revenue from voice decline and the future
growth trend points to data, Mobile Telecom
Operators (MTOs) are keen to play a key part in
the future data market. With the 800 MHz -
required to expand nationwide and cheaper to
deploy — now available, government contrary to
its promise is opening the frequency up for MTOs,
the ICT Chamber said.

"The MTOs have been operating the voice, fixed and
mobile broadband band space for the last 20 years.
All six telcos are foreign-owned and have
generated billions of dollars from their business
in Ghana. "The MTOs' performance on the 3G space
has been dismal with a mere 34% penetration after
a decade of operations with low quality of
service," the Chamber said in a statement.

"The Broadband, Fixed and mobile voice line are
dominated by foreign companies. We support the
need for foreign investments and participation in
the ICT Space, but deem it necessary for
Government to also protect and nurture indigenous
businesses to become multinationals of tomorrow
for Ghana.

"The LTE technology holds the key to creating a
Ghanaian- owned ICT industry. As voice is
dominated by foreign companies, it is only
reasonable and fair for God and country that the
Ghanaian is put in the fore of the Data Space.
This is a game changer.

"The financial depth and existing subscriber
access of the MTOs privileges them to outcompete
and collapse the local LTE companies if LTEs are
granted to MTOs. This will destroy any dream of
having a Ghanaian-owned ICT industry.

"It is wrong and unacceptable for a government to
turn its back on a promise that has led to a $200
million investment by its own citizens, to the
advantage of foreign companies. What credibility
can businesses then attach to government
promises?" the Chamber said.

Local LTE companies argue that government should
temporarily suspend selling the LTE spectrum to
allow them enough time to recover their investment
and make decent returns before opening it up to
MNOs.

Source - Bus & Fin Times

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