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Vodafone to bid for 4G license if price drops

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Telecommunications Company, Vodafone Ghana has disclosed to Citi Business News it may not to put in a bid for the second 4G spectrum, if it is auctioned at the same price it was auctioned for in 2015.

The Minister for Communications, Mrs. Owusu-Ekuful last week announced that government will auction the second 4G spectrum in June this year.

MTN Ghana won the auction for the first 4G spectrum in 2015, at a price of $67.5 million dollars.

But in an interview with Citi Business News, the Director of External Affairs at Vodafone Ghana, Gayheart Mensah maintained that Vodafone will continue to be interested in the second 4G spectrum, as long as it comes at an affordable price.

“Vodafone as a telecommunications operator is always interested in the spectrum. Having more spectrums gives Vodafone the opportunity to connect a lot more people, and provide a lot more services. Vodafone will continue to be interested in the spectrum to the extent that the price makes business sense.”

Gayheart Mensah added that the price at which MTN won the first 4G spectrum is off-market because it doesn’t support the business case in question.

He further stated that looking at all the parameters that one requires to fix the price for a spectrum, his outfit thinks the current price is very high.

Other telecommunication companies meanwhile have complained about the high cost of the spectrum.

They argue that the high cost has deterred most of them from purchasing it.

As a result, they have made appeals for the cost to be reviewed downwards to make it affordable for interested networks.

The second 4G spectrum has been left untaken after MTN acquired the first one in 2015.

MTN, together with three other companies back then; Surfline, Goldkey and Migson communications all submitted applications for the spectrum but only MTN was able to cough up the floor price for the spectrum which was 67.5 million dollars.

The spectrum allows the telecom operator to provide improved internet services to customers as it has a faster speed and enhanced features.

By: Bobbie Osei/citibusinessnews.com/Ghana

Citi Business News