Sam George: Telecel got free $30m 4G spectrum from government in 2019

Sam George, Minister of Communication, Digital Technology and Innovations

Minister of Communication, Digital Technology and Innovations, Samuel Nartey George has said that, contrary to assertions that government’s 30% shares in Telecel Ghana has been of no value to the company over the years, government underwrote free 4G spectrum worth $30 million for the company in 2019. 

In that year, Telecel Ghana (then Vodafone Ghana) acquired a 2x5Mhz spectrum lot in the 800Mhz band at a cost of $30 million for the rollout of a 4G network. This was in an attempt to catch up with MTN Ghana, which had had 4G since 2015, on the back of much bigger spectrum.

The National Communications Authority (NCA) had in 2015 (under the NDC government), auctioned 2x10Mhz spectrum lots in the 800MHz band for $67.5 million, and only MTN was able to acquire one at the time.

Indeed, all industry players, including even MTN complained that the price was too high. But the NDC government at the time, needed money to meet the ITU deadline for the transition from analogue TV system to the digital terrestrial television (DTT) system. So, they chose to auction spectrum at a political/premium rate.

Following that auction, which gave MTN the further urge over all the other industry players, this writer, in a series of articles, questioned why government would not quantify its 30% shares in Vodafone into spectrum and provide it to the company as its portion of capital investment.

In an interview on The Point of View, Sam George noted that, four years after MTN had ruled the 4G space, government indeed gave Vodafone (now Telecel), free 4G spectrum in 2019, in respect of its 30% shares in the company.

At the time, the communication put out by the NCA was that Vodafone had acquired 4G spectrum at a subsidised rate of $30 million. But Techfocus24 has just gathered that indeed, the Ministry of Finance, under the previous government underwrote the bill so Vodafone did not pay anything for the spectrum.

Sam George argued that, spectrum is the life blood of the telecoms industry, so that spectrum government gave to Vodafone (Telecel) for free was a very significant investment government made in that company.

Telecel Owes Government Over $70 million

He said, in respect of government’s 30% shares in Telecel Ghana, the company currently owes the state more than $70 million, which is money that should have come to the state for development project.

The Minister said in spite of all that support from the state, plus the fact the they were granted technology neutrality two years ago, Telecel has failed to invest and make the network viable.

Sam George blames the former Minister and the NCA under her watch for the current state of affairs at Telecel, saying that as part of the conditions for approving the sale of Vodafone shares to Telecel, the company was supposed to have brought in US$100 million upfront, but that money never came and has since never come.

The Minister said he is now demanding from Telecel, evidence of readiness to make hard cash investments into the network, because that is what it will take for the network to thrive in a competitive market like Ghana.

Source: techfocus24.com