Ghana Betting Ambani-Backed 5G Operator Will Cut Broadband Costs – BNN Bloomberg

On November 1, 2024By Karl

(Bloomberg) — Ghana, the West African nation struggling to recover from its debt crisis, is relying on the high-speed broadband network backed by billionaire Mukesh Ambani to reduce data costs and stimulate economic activity.

New Generation InfraCo. It will launch the first 5G network on Friday, Minister of Communications and Digitalization Ursula Owusu-Ekuful said in an interview.

Accra-based NGIC aims to emulate Ambani’s Reliance Jio Infocomm Ltd.’s success in India. In 2016, Jio disrupted the country’s telecom industry by launching low-cost data and free voice calling services, pushing consolidation and luring subscribers. The company is known for making mobile data affordable in the world’s most populous country, becoming India’s largest mobile operator with 470 million users in the process.

“We hope this will also democratize access to high-speed connectivity across the country,” Owusu-Ekuful said. “We know that this will encourage businesses to sprout not only in big cities but also in rural areas, providing more opportunities for entrepreneurs by creating economic zones.”

Low-cost high-speed internet service is Ghana’s latest effort to revive business activity and boost an economy struggling to recover from its debt crisis. In July, President Nana Akufo-Addo launched an 8.2 billion cedis ($503 million) program to provide cheap loans to small and medium-sized businesses. According to the finance ministry, businesses in this segment account for 70% of gross domestic product.

Economic growth rose to 6.9% in the second quarter from 4.7% in the previous three months, but this was led by the mining sector. Annual growth in Africa’s largest gold producer has yet to recover to pre-pandemic levels of at least 6%.

Owusu-Ekuful said NGIC, which purchased the spectrum from Ghanaian regulators for $125 million, has exclusive rights to provide a 5G network in Ghana for the next 10 years, and the arrangement is expected to further reduce service fees. He said that all other operators will lease from NGIC and serve their subscribers.

The main players in the country, which has a population of just over 33 million, are MTN Ghana, Telecel Ghana and last year Bharti Airtel Ltd. and AT, which changed its name from AirtelTigo after Millicom International Cellular SA sold its shares.

Under the agreement, Radisys Corp., a unit of Ambani-controlled Reliance Industries Ltd., will provide network infrastructure, applications and smartphones to NGIC.

Other partners include Nokia Oyj, Tech Mahindra Ltd. and Microsoft Corp. There are. Two companies based in Accra – Ascend Digital Solutions Ltd. and K-NET – holds a total stake of 55% in the company; The government of Ghana has a 7.5 percent carried share. Domestic mobile operators and private investors will hold the remaining shares.

Owusu-Ekuful said internet penetration in Ghana stands at about 70% and the government is ambitiously aiming to close this gap within the next six years.