4 days Ago By News Ghana
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/ghana-demands-accountability-from-telecel-over-70-million-debt-and-spectrum-use/Ghana’s Minister of Communications, Samuel Nartey George, has disclosed that Telecel Ghana, formerly Vodafone Ghana, received a $30 million 4G spectrum allocation free of charge in 2019 as part of the state’s equity contribution to the company.
This revelation comes amid mounting scrutiny over Telecel’s financial obligations to the government, now exceeding $70 million, and its failure to meet investment commitments aimed at bolstering competition in Ghana’s telecom sector.The 2019 spectrum allocation, drawn from the 800MHz band, was intended to support Telecel’s 4G rollout and counter MTN Ghana’s dominance, which had leveraged its own 4G spectrum since 2015. At the time, the National Communications Authority (NCA) framed the transaction as a “subsidized” deal, but Minister George clarified that the Ministry of Finance under the previous administration fully underwrote the $30 million cost.
“Spectrum is the lifeblood of telecoms. This was a significant state investment,” he asserted during an interview on *The Point of View*.Despite this support, Telecel has yet to fulfill a critical condition tied to its 2022 acquisition of Vodafone Ghana’s assets: a pledged $100 million upfront capital injection.
George criticized predecessors for approving the sale without enforcing this requirement, leaving the company’s network upgrades underfunded and its market share stagnant. “Telecel must now demonstrate readiness to invest hard cash into the network,” he stated, signaling impatience with the operator’s reliance on state-backed concessions.The minister’s remarks underscore broader frustrations with Ghana’s telecom policy legacy.
In 2015, the government auctioned 4G spectrum at $67.5 million—a price deemed prohibitive by industry players—to fund the analog-to-digital TV transition. Only MTN could afford the fee, cementing its market lead.
Critics argue that subsequent attempts to balance the sector, such as gifting spectrum to Telecel, failed to address systemic inequities, allowing MTN to command over 70% of mobile subscriptions.Telecel’s struggles highlight the challenges of nurturing competition in a lopsided market. While the government holds a 30% stake in the company, its $70 million debt to the state reflects missed opportunities to reinvest in infrastructure or innovation.
George also linked these lapses to broader regulatory failures, including the controversial merger of Airtel and Tigo in 2017, which created an unsustainable entity now requiring government intervention.The current administration’s stance signals a shift toward stricter accountability. By demanding proof of investment, George aims to attract credible partners to revive Telecel and AT Ghana, the latter of which operates on outdated 3G infrastructure.
However, skepticism persists among industry analysts, who question whether investors will commit to a market where MTN’s financial and technical superiority remains unchallenged.Ghana’s telecom sector stands at a crossroads. The government’s push for transparency and fresh capital injection reflects an urgent need to modernize networks and expand service quality ahead of NGIC’s 5G rollout.
Yet the path forward hinges on reconciling past policy missteps with present-day realities—a task complicated by legacy debts, regulatory gaps, and the ever-present shadow of MTN’s dominance.As the state tightens oversight, the Telecel saga serves as a cautionary tale: state support without enforceable accountability risks entrenching inefficiency rather than fostering competition. For Ghana’s digital ambitions to thrive, bridging the gap between spectrum allocations and sustainable investment may prove as critical as the airwaves themselves.
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/ghana-demands-accountability-from-telecel-over-70-million-debt-and-spectrum-use/.
