The Ghana Chamber of Telecommunications wants the National Communications Authority (NCA) to place a cap on the number of telecom companies that can operate in the country.
According to the Chief Executive Officer of the chamber there should be an equilibrium point to cap the number of telecom operators to prevent diminishing returns, which will endanger the survival of business in the sector and the services customers receive.
Within the last decade, Ghana?s mobile telecommunication industry has simply exploded and is thriving due to the continuous development of the country, a fast growing customer base and a competitive array of competent providers.
Mobile telecommunications are now a recognized success all over Africa and billions have been made by those who had foreseen its potential over poor landline infrastructures run by mismanaged public companies.
Ghana with a population of about 26 million people currently has 10 Mobile Network Operators (MNO) with 6 doing 3G being voice with data and also 4 having 4G licenses.
While Nigeria with a population of 172 million has only 9 Mobile Network Operator?s.
Speaking to Citi Business News Chief Executive Officer of Ghana Chamber of Telecommunications Kwaku Sakyi ? Addo said while competition does have an impact on prices and quality of service, telecom operators must also generate returns on their investments and have enough cash flow to reinvest in the business.
?You know competition is good and it can and does play a role in reducing pricing for end users and also improving services, that is what competition does. Operators also need to generate enough cash flow to stay business to reinvest in future networks, infrastructure, to ensure that they are sustained and they stay in business and provide those services that customers want.?
There should be a point where a cap must be placed on the number of telecom operators in the country so we don?t endanger the survival and viability of the company which will have an impact on quality of service if investment and infrastructure are in adequate.
?So yes having multiple operators, having competition is good but there is a point beyond which the case weakens.?
Source: NORVAN ACQUAH – HAYFORD
