21.4 C
New York
Tuesday, June 18, 2024

Ghana resists exclusive 5G deal with Indian Billionaire Ambani

The National Democratic Congress (NDC) stated that the Ghanaian government’s plan to launch a 5G network in partnership with Mukesh Ambani’s company is disadvantageous for the debt-ridden country, which requires funds for essential development projects.

The minority caucus stated that the West African nation could have generated between $400 million and $500 million upfront if the government had opted for a formal bidding process, Bloomberg reported.

Instead, they claim, the administration awarded a contract to the company Next Gen Infraco for $125 million, paid in annual instalments over 10 years.

“The NDC caucus in Parliament holds the view that at a time that the country is in dire need of foreign exchange and non-tax revenue, it is unconscionable that the government will hand over the precious and highly sought-after 5G spectrum of the country to a shell company for a pittance,” the caucus said.

Under the terms of the deal, Radisys Corp., a unit of Ambani-controlled Reliance Industries Ltd., will provide network infrastructure, applications and smartphones for Ghana-based NGIC. The deal gives NGIC and its strategic partners exclusive control over Ghana’s only 5G license for a decade.

Other partners in NGIC include Nokia Oyj, Indian outsourcer Tech Mahindra Ltd. and Microsoft Corp. Two lesser-known African telecom firms — Ascend Digital Solutions Ltd. and K-NET — hold a combined stake of 55% in the new company. The Ghanaian government owns roughly 10%.

Ghana’s government has set an ambitious target to digitally connect the entire country over the next six years. With a population of just over 33 million, Ghana has three main operators: MTN Ghana, Telecel Ghana and AT, which changed its name from AirtelTigo last year.

Source link

Related Articles


Please enter your comment!
Please enter your name here

Stay Connected


Latest Articles