[ 2016-08-16 ]

Expresso still struggling to secure investors
Information gathered by Citi Business News
indicates that telecom company, Expresso has still
not been able to secure an investor to stabilize
its operations.

The company which is currently struggling
announced earlier this year that it will seek
investors to help it come back into full
operation.

Some Players within the telecom industry have
however warned that the company risks folding up
if it fails to find an investor soon.

According to observers in the industry,
Expresso’s lack of change in technology from
Code Division Multiple Access (CDMA) to Global
System for Mobile communication (GSM) is a major
contributing factor to the difficulties in
securing an investor.

The development has also reduced Expresso’s
market share to just about 0.36% as at the first
quarter of this year.

Meanwhile, The National Communications Authority
(NCA) has hinted to Citi Business News it will be
meeting with the management of Expresso to review
the company’s operations due to its growing
financial and operational challenges.

With the introduction of 4G into Ghana’s telecom
industry, Expresso, must get a strategic investor
to move the capacity of the company to full
operation.

Expresso’s challenges

The woes of Expresso have in the past affected its
operation with some of its competitors– MTN and
Airtel.

The two companies had been compelled to block
calls from Expresso over unpaid debts under the
Interconnect Clearing House(ICH).

In what appeared to be an unending feud, the
industry regulator, the National Communications
Authority (NCA) recommended that subscribers of
Expresso port to other networks.

Association with Sudatel

Expresso’s challenges have largely been
attributed to its affiliation with Sudatel from
Sudan which has made difficult for Expresso to
raise capital locally and internationally due to
sanctions placed by the UN on Sudan.

Also, moves by Sudatel to sell its shares in
Expresso in 2013/2014, granted former National
Security Coordinator, Colonel Larry Gbevlo-Lartey
(Retired) the power of attorney to run the
telecommunications company.

Source - citibsinessnews.com

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