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2011 budget expected to give tax incentives to telecom operators

Minister of Communications, Haruna Iddrisu has hinted that the 2012 budget which is expected to be read in Parliament today will give tax incentives to telecom operators who extend voice and data services to the remotest and deprived communities of the country. 

He said the budget is also expected to announce the abolishment of the stabilization levy which has become a tax burden on telecom operations and other businesses in the country.

The Minister was speaking at the celebration to mark MTN’s tenth million subscriber base mileage in Accra on Tuesday.

Mr. Iddrisu also noted that telecom operators in the country had raised issues with high taxes and challenges with business operating permits and fibre cuts, adding that plans are underway to address the destruction of fiber optic cables in the country, especially during construction.

He also noted that “government will no longer tolerate the slightest disruption of telecom service because of its implication for life and businesses and therefore the regulator will sanction all other activities that will lead to the disruption of telecom services to the Ghanaian consumer and it is in this context that I say that we will no longer tolerate any excuses.”

The minister’s statement comes in the wake of recent heavy fines on all five GSM operators in Ghana for sloppy services.

Mr. Iddrisu noted that the government's new policy position on telecom was that telecom was no more a pleasurable and a luxury but a major essential service that had serious implications for businesses and life in general.

The Minister hinted that a new SIM regulation to enforce the legislation mandating mobile operators to register their suscribers has already been laid before parliament and should become law soon.

Since its entry onto the Ghanaian telecommunications market, MTN says it has made significant investments in the deployment of state-of-the-art infrastructure aimed at delivering innovative world class telecommunication services to Ghanaians. The company says it has also shown consistent commitment to Corporate Social Responsibility, hence wining massive subscriber loyalty.

As the company announces that its subscriber base has hit the 10 millionth mark, the Chief Executive Officer of the company, Michael Ikpoki expressed the operator’s excitement at achieving this significant milestone only few years after its launch in the country.

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