Telecom Analyst, Fouad Chaalabi has backed calls for telecom operators to consolidate to acquire the second 4G license being offered by government.
“I think this is the best way of doing it but it depends on the two. You know merger is like a marriage so you need to find your better match,” he said.
MTN Ghana is the only telecommunication network that has acquired the 4G license at a price of 67.5 million dollars.
Other telecommunication networks have told Citi Business News they have no interest in acquiring the license due to its high cost.
In an interview with Citi Business News, Mr. Chaalabi said Telcos should merge to attract better network opportunities.
He however advised the Ministry to encourage Telcos to go in for the 4G license.
“But I think what the ministry should do is to encourage the Telcos in order to present the opportunity. At the end of the day, this change in the market is been due because MTN has got the 4G so the balance now has changed. None of them needed it at the time but now the one who got the 4G is the dominant operator and they have paid for it so now the others feel the threat more,” he stated.
Communications Minister Ursula Owusu Ekuful earlier stated that government would not reduce the cost; hence Telcos must consolidate to acquire it.
She was of the view that the cost of the spectrum is reasonable considering the margins that come with it.
She maintained that the profit is worth the investment hence telcos must come together to raise the money and benefit from the technology.
4G is the short name for fourth-generation wireless, the stage of broadband mobile communications that supercedes the third generation (3G).
Some benefits of the 4G network include quick download of files over a wireless network, gives extremely high voice quality, its easy access to internet, IM, social networks, streaming media, it enables video calling and gives higher bandwidth.
By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana