Telecommunications Chamber reacts to NCA's penalties

The Ghana Chamber of Telecommunications has reacted to the publication “5 TELCOS PUNISHED” in the Daily Graphic of Tuesday, November 8, 2011. The story focused on a total GhC1.2 million penalty imposed on mobile phone operators by the National Communications Authority (NCA), the industry regulator, for “poor services.”
In a statement signed by the Chief Executive Officer of the Chamber, Kwaku Sakyi-Addo, it said the robust competition in the mobile industry in Ghana leaves operators little room for “poor services” by any telecom operator who expects to survive and justify its huge investments.
According to the statement, mobile operators in Ghana have consistently raised concerns over the key quality of service indicators used by the NCA to grade their operations, and as it stood the Chamber was currently in discussions with the regulator for a review.
“Those discussions are on-going, and therefore the Chamber is surprised by the decision of the NCA to go public on this subject.”
The statement also attributed the inability of telecom operators to render quality services to subscribers in the country to external factors within the Ghanaian environment.
“These factors include electric power outages, theft of diesel from back-up generators, and cable cuts. The problem of fibre cuts is of major concern and the Telecoms Chamber is currently working with the Ghana Highways Authority, Department of Urban Roads and road contractors to minimize the occurrence. “
Also, concerns about radiation from telecom masts, though not borne out by scientific facts, the statement said, had also affected the roll out of cell sites in some communities.
“Fifth, Metropolitan, Municipal and District Assemblies (MMDAs) levy astronomical charges on telecom infrastructure, with massively discriminatory disparities compared to those imposed on other industries. These charges inhibit the roll-out of infrastructure and have an impact on quality of service,” it said.
The Telecoms Chamber also outlined that the Chamber, with its members had persistently drawn the attention of the NCA and other responsible authorities to the effect that the stated problems had on quality of service.
“We had, over the past several months, chosen the path of dialogue with the institutions and agencies concerned and we look forward to a speedy resolution.”
According to the statement, the industry has immense socio-economic importance to the nation.
“In 2010, telecommunications alone was responsible for a third of GDP growth. Nearly 40 per cent of telecom operators’ revenues go to government in taxes. A further 40 per cent of revenues are re-invested in Ghana. Even so, tariffs have dropped consistently unlike any other sector in Ghana, even as the cost of inputs has kept on rising,” the statement further explained.
According to the statement, based on the importance and impact of the telecoms industry on all sectors of the economy and on social life, “we implore the NCA to reconsider its rigid posture towards the telecoms operators with a view to supporting it towards further growth in order to lead the industry to even greater economic and social benefits for the Ghanaian people.”
Accra, May 17, 2012
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