High cost of 4G license in Ghana Stalling Investments

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Given the high cost of acquiring a 4G license in Ghana, most telecommunication companies are hesitant to migrate into the spectrum, with the government insisting that the cost cannot be reduced.

Out of the five telecommunication networks operating in Ghana, only MTN—the biggest network has been able to acquire the 4G space. The company did so at price $67.7 million, a figure the rest of the companies see as excessive.

MTN Ghana which acquired the first 4G license did so at a price of $67.5 million, a figure that was exceedingly high for the other bidders to compete with.The CEO of Vodafone Ghana, Yolanda Cuba in May this year asked for the cost of the spectrum must be reduced.

The CEO of Vodafone Ghana, Yolanda Cuba in May this year asked for the cost of the spectrum must be reduced.Reacting to the appeal, the Minister Communications, Ursula Owusu Ekuful was of the view that government cannot reduce the cost, hence telcos must consolidate to acquire it.

Reacting to the appeal, the Minister Communications, Ursula Owusu Ekuful was of the view that government cannot reduce the cost, hence telcos must consolidate to acquire it.“I have indicated in the meetings I have had with the operators that consolidation is the way to go and we would actively promote any effort to consolidate their operations and build more synergies instead of going for loans and incurring the huge capital outlaw which the industry demands,” Mrs. Owusu Ekuful said.

“I have indicated in the meetings I have had with the operators that consolidation is the way to go and we would actively promote any effort to consolidate their operations and build more synergies instead of going for loans and incurring the huge capital outlay which the industry demands,” Mrs. Owusu Ekuful said.“I believe that when the spectrum was offered for sale those who wanted to, acquired it. The broadband wireless operators have the 4G LTE license so does MTN which was the only one which took up the offer. Comparatively, people say that we auctioned it for a rather reasonable amount,” she added.

“I believe that when the spectrum was offered for sale those who wanted to, acquired it. The broadband wireless operators have the 4G LTE license so does MTN which was the only one which took up the offer. Comparatively, people say that we auctioned it for a rather reasonable amount,” she added.

Contrary to assertions that the cost was too high, Mrs. Owusu Ekuful was of the view that the cost of the spectrum is reasonable considering the margins that come with it, adding that the profit margin is worth the investment.

“It is reality but $67.5 million was what we sold the spectrum for, I think if you look at the profit to be made in the sector, for me, it was a reasonable amount, I don’t know, but there is no way that we will go below that amount now,” she stressed.

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