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Cost of 4G license not to be reduced soon – Communications Ministry

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Telecom operators hoping to buy into the second of the 4G spectrum may have to wait a little longer as the communications ministry rules out any decision to reduce the cost of the license.

MTN, in 2015 bought the first of the two spectrum at a cost of 67.5million dollars albeit the high cost cited by some telecom operators.

Efforts have been made to get the NCA and relevant authorities to reduce the price of the remaining license to allow others to buy and compete favorably.

But the appeals have yielded little results.

A Technical Advisor at the Ministry of Communications, Emmanuel Baah tells Citi Business News the outfit is seeking to increase the absorption of the 3G license before considering the sale of the 4G license to other telecom operators.

“3G has only forty percent per the number of people that have data service but the focus should be primarily on 3G roll out nationwide and then 4 G will follow.  The licensing regime is also where there is a policy whereby 4G license was not given to various companies.”

“The market is addressing that issue because they did a stock declaring those companies and traditional network mobile operators. So some collaboration will take place and that will include the coverage of 4G. So it is good to have 4G but we must look to get 3G assessable,” he added.

Mr. Baah was speaking at a seminar for Network of Communication Reporters (NCR).

The seminar was on improving service excellence in Ghana’s telecoms industry.

Citi Business News has gathered that the second 4G spectrum being sold by government may never be acquired by the telecom operators in the country.

Discussions with operators in the telecom industry reveal that most of them will shy away from acquiring the license because of its high cost.

The telecom operators argue that the price being offered by government in acquiring a 4G license is extremely high and not in the best interest of their companies taking their financial strength into consideration.

In an exclusive interview with Head of Business desk at Citi FM Vivian Kai Lokko, the Chief Executive Officer of Vodafone Ghana, Yolanda Cuba said her outfit will launch into 4G operations when they believe the price offered for it will benefit the company as well as consumers.

“I think at some point in time we will roll out 4G; the question around is whether the price at which the available slot is being offered is actually market related and whether it is a fair price to pay at this point in time,” Yolanda Cuba said.

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

 

Ghana Business News