….Communication Minister breaks its dominance; Rejects company’s US$250 Million
Attempts by telecom giant MTN to maintain its supremacy in the telecommunication space by buying and monopolizing the 5G technology, have faced significant pushback from the Minister for Communications and Digitalisation.
Ursula Owusu-Ekuful, the Communications Minister, advocates for making the superior technology available to all telecom companies that are ready and willing to pay for the service.
She aims to ensure that the 5G infrastructure project, which according to the government seeks to deliver affordable 5G mobile broadband services across Ghana, involves a shared infrastructure among seven industry players.
MTN, is believed to be behind a news story put out yesterday on the 5G technology by investigative journalist Manasseh Azure Awuni, questioning the bidding process of the contract awarded to Next Gen Infraco Ltd. by the Communications Ministry to roll out Ghana’s 5G infrastructure.
A few months ago, MTN, was ready and willing to cough up a whopping US$250 million to the Akufo-Addo government, to be the sole operator of the 5G network and be able to maintain its dominance of the telecom space, however, the Minister, according to The Herald’s insiders, fought everyone, including powerful ministers of state.
These desperate ministers, eager to secure the money, were reportedly working to grant MTN access to the 5G technology.
However, Mrs Owusu-Ekuful, insisted on ensuring cheaper data and telecommunication services for Ghanaian consumers.
She firmly opposed her colleagues and refused to follow the 4G model implemented under the Mahama government, which allowed a South African company to monopolize the industry, severely impacting and killing Airtel, Vodafone, Tigo, and other internet service providers.
According to Minister Owusu-Ekuful, “The goal is to create a level playing field where all telecom companies can compete fairly and provide affordable 5G services to Ghanaians.” This stance underscores her commitment to breaking the monopoly of a single entity in the telecom sector, ensuring that the benefits of advanced technology are accessible to all.
The insider told The Herald that the Minister for Communications and Digitalisation must be commended for her boldness and encouraged to do more to end the years of expensive data and telecommunications services in Ghana.
With a massive 30percent market share, the Minister’s tough stance, The Herald has learnt has sent panic waves among MTN’s top executives who are afraid of a decline in their profit margin and are desperate to do anything including desperate contacts with the officials of the Finance Ministry who were willing to be their lobbyist.
MTN insiders told The Herald that reports of Mukesh Ambani’s partnership with Anand Mahindra’s tech Mahindra and Finland’s Nokia to offer 4G and 5G network support in Ghana is a massive threat.
At the press conference yesterday, on Thursday, May 30, 2024, Mrs Owusu-Ekuful, announced that internet users should look forward to faster and more affordable mobile data as the government has announced plans to roll out the 5G network within the next six months.
She disclosed that Next-Gen InfraCo (NGIC), the company awarded the 5G license in Ghana, is expected to launch the internet services across the country within the specified period, followed by expansion to other parts of Africa.
NGIC, she explains, is a consortium formed between the government of Ghana and seven other partners.
They are; Ascend Digital, K-NET, Radisys, Nokia, and Tech Mahindra and two telcos – AT Ghana and Telecel Ghana.
Global tech giant, Microsoft, according to the minister, has also expressed interest in the project and discussions will soon begin.
The Minister of Communication and Digitalisation, added that the company will be the first 5G Mobile Broadband Shared Infrastructure Entity to build a nationwide 4G/5G network.
The aim of the introduction of the 5G internet services is to boost the digital agenda drive in Ghana’s education, healthcare, and digital payment transactions, thereby reducing the digital divide and promoting financial inclusion.
“NGIC’s equity will be held by the public of Ghana, Ascend Digital, K-NET, all mobile operators in Ghana and other private investors including the technology providers who may wish to join the consortium,” she stated.
Additionally, the multiplayer partnership will support NGIC in the entire deployment of network infrastructure and associated services, as communications service providers (CSPs) are looking to address enterprise and consumer markets with enhanced digital services.
Manasseh Azure Awuni, while questioning the bidding process of the contract awarded to Next Gen Infraco Ltd. by the Communications Ministry to roll out Ghana’s 5G infrastructure said the company, was formed just a week before President Akufo-Addo’s executive approval on August 22, 2023, has been awarded the deal without an auction, sparking questions about transparency and fairness.
Mr Awuni, in a Facebook post, questioned the track record of Next Gen Infraco Ltd., a company formed just days before the president’s approval.
He also wondered why different companies were not allowed to bid for the contract, which industry experts estimate could be worth hundreds of millions of dollars.
The journalist also raised questions about the relationship between Next Gen Infraco Ltd. and Smart Infraco, another company involved in the project.
“The company that has been handed the deal was formed less than a week before the president’s approval. The 5G technology, according to industry experts, can be worth hundreds of millions of dollars. Why is it being handed to one company without an auction? Why were different companies not allowed to bid for the contract?”
“What is the track record of a company that was formed less than a week before the president approved the deal? What is the relationship between this company and Smart Infraco?”
Mr Awuni, in a Facebook post “Dear Ghanaian journalists, “The Minister for Communications, Ursula Owusu-Ekuful, will address the media today. Kindly demand answers on this deal.
“President Akufo-Akufo-Addo “granted Executive Approval on 22nd August 2023 for the introduction of 5G through the establishment of a neutral, wireless open access network to promote a vibrant telecom market in Ghana.”
“The company that has been handed the deal was formed less than a week before the president’s approval.
The 5G technology, according to industry experts, can be worth hundreds of millions of dollars. Why is it being handed to one company without an auction?
“Why were different companies not allowed to bid for the contract? What is the track record of a company that was formed less than a week before the president approved the deal? What is the relationship between this company and Smart Infraco?
He also wrote, “5G is a huge national resource. You don’t give it to only one person, without the rest of us knowing, because you have power”. But Nenyi George Andah, a former deputy minister of Communication replied saying “My brother Manasseh Azure Awuni, the Government of Ghana’s decision to establish a holding company, as a joint venture with key industry players to deploy 5G infrastructure is a forward-thinking initiative with significant benefits for both the country and the telecommunications…”
The Herald’s findings are that Mukesh Ambani is currently the richest man in India with a massive net worth. He is the chairperson of Reliance Industries, the most valuable company in India with a huge market cap.
Mukesh Ambani is involved in a wide range of business and over the past few years, he has invested massively on 5G network solutions.
After touching new heights with 5G infrastructure in India, the billionaire is now planning to expand to other continents. As per a report by the Economic Times, Mukesh Ambani’s Reliance is partnering up with Anand Mahindra’s tech Mahindra and Finland’s Nokia to offer 4G and 5G network support in Ghana.
The report suggests that Radisys, owned by Reliance’s Jio Platforms Ltd, along with Tech Mahindra and Nokia, are joining forces with Next-Gen Infrastructure Co. (NGIC), which has the Ghanaian government, Ascend Digital and K-Net as stakeholders. For those who are unaware, NGIC is the first neutral 5G shared infrastructure provider in Africa. After Ghana, it plans to offer 4G and 5G network support in other African countries.
NGIC will reportedly invest around Rs 1661 crore in the period of three years to scale up its 4G and 5G networks.
The investment will help mobile operators in Africa to get shared infrastructure resources which will help in optimising costs for local telco.
As per the report, Mukesh Ambani’s Radisys will offer NGIC its own 5G software stack. Jio Platforms Ltd’s 5G stack uses Open radio access network technology and gear for delivering 5G-based fixed wireless access (FWA) services in African markets starting with Ghana.
