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Ghana’s Communications Minister Justifies Awarding 5G Contract to Newly Formed Company

The Africa Agenda by The Africa Agenda
May 30, 2024
in News
0
Ghana’s Communications Minister Justifies Awarding 5G Contract to Newly Formed Company

Ghana’s Communications and Digitalisation Minister Ursula Owusu-Ekuful has confirmed that NextGen InfraCo, awarded the 5G network rollout contract, was established just one week before the contract approval. The Minister explained that the company was specifically created for this purpose because no existing neutral infrastructure company was capable of handling the rollout.

At a press briefing, Owusu-Ekuful cited past setbacks in the 4G rollout as the reason for not pursuing an auction. Since its introduction in 2015, 4G has only achieved 15% nationwide penetration. By directly awarding the contract to a new entity, the government aims to expedite the 5G deployment and avoid similar obstacles.

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“This is a special purpose vehicle. There is no existing neutral infrastructure company capable of delivering this service at the moment,” Owusu-Ekuful stated. She emphasized that the decision was based on strategic policies to ensure a successful 5G rollout.

Investigative journalist Manasseh Azure Awuni raised concerns about the transparency of awarding the contract to NextGen InfraCo Ltd., which was incorporated shortly before the executive approval. Awuni highlighted the lack of competitive bidding, which he argues raises questions about fairness.

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The government plans to roll out 5G services by the end of 2024, partnering with seven industry leaders, including Ascend Digital, K-NET, Radisys, Nokia, Tech Mahindra, AT Ghana, and Telecel Ghana. These partners have formed the Next-Gen Infrastructure Company (NGIC) to develop shared infrastructure for affordable 5G mobile broadband services.

NGIC will build a nationwide 4G/5G network and collaborate with telcos to introduce affordable 4G/5G-enabled fixed wireless access equipment and smartphones. The initiative aims to enhance digital services in education, healthcare, and digital payments, reducing the digital divide and promoting financial inclusion in Ghana.

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Via: Moses Desire Kuoyo
Tags: GhanaUrsula Owusu
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