Akufo-Addo Gov’t caught in Mahama’s 5G promise for 2020 manifesto …NDC Minority appears confused

The opposition National Democratic Congress (NDC) appears inconsistent in its commitment to building a National Information Highway and establishing Public-Private Partnerships (PPP) for the rollout of 5G networks, had it won the 2020 general election.

In its 2020 Manifesto, the NDC, explicitly stated its commitment to infrastructure projects like the National Information Highway and the rollout of 5G networks through PPP.

However, the NDC Minority in Parliament, now opposes the Akufo-Addo government’s decision to give the 5G spectrum to Next Gen Infraco Company Limited for both indigenous Ghanaian and foreign companies to profit from for the next 10 to 15 years, calling it inimical to the national interest.

The Herald, has picked reports that the NDC, did an extensive consultation with industry players ahead of drawing its 2020 manifesto. Despite this, the NDC is now arguing differently, and insiders have told The Herald the Akufo-Addo government is essentially implementing what the NDC had planned to, if it had won the 2020 elections.

The NDC flag bearer, John Dramani Mahama, is credited as one of the leading lights in the telecom sector, having spearheaded the mobile telephone deployment in Ghana during the Jerry Rawlings administration as the Minister of Communications.

Indeed, there is a feeling that, had the Minority engaged him and other stakeholders and experts, in its stance on the 5G arrangement currently being pursued by the Akufo-Addo government, they would have been supportive.

Interestingly, on page 98, Section 8.6 of the NDC 2020 Manifesto, under the heading “Promoting Smart Business, Smart Government Services, and Digital Infrastructure,” the party stated that “under the NDC and John Dramani Mahama, Ghana has a historic chance to transition into a fully digitised, cash lite and advanced economy. We will: ‘ensure the efficient transfer of digital technologies and skills,’ adding, ‘make it our sacred mission to lead Ghana and Africa into this new world, as 5G technology beckons.’”

The party promised to “support Ghanaian-owned indigenous businesses with affordable spectrums, move to an affordable universal licensing regime, including 5G, that allows flexibility for Telecom companies to tap into revolutionary technologies, and support local private sector entrepreneurs to build data centres in key cities of the country to ensure Ghana has enough storage and processing power to manage the digital economy.”

Despite this, the NDC, is now arguing differently, which insiders have told The Herald is confusing, because the Akufo-Addo government through Ursula Owusu-Ekuful, the Minister for Communications and Digitalisation, is essentially implementing what the NDC, had planned.

Under this deal, Next Gen Infraco Limited was given the exclusive right to build, own, and operate the entire 5G infrastructure network across the country for all mobile network operators, internet service providers, and other entities.

According to the Minority, executive approval was granted by President Akufo-Addo for “this sweetheart deal on August 22, 2023, barely one week after the company’s incorporation on August 16, 2023. This was done through a non-transparent arrangement without any competitive process whatsoever.”

“After a preliminary study of the processes leading to this opaque transaction, the Minority Caucus takes the view that the Next Gen Infraco 5G deal is inimical to the national interest,” stated the Minority Leader, Dr Cassiel Ato Forson.

The NDC, argues that the government’s decision lacks value for money, estimating that the state could have generated between $400 million and $500 million upfront through a competitive process.

This revenue could have been channeled into critical development projects amidst economic hardship. “Sadly, the corrupt Akufo-Addo/Bawumia government is giving away this important asset for a paltry $125 million payable in yearly instalments on a work-and-pay basis over the next 10 years,” the statement said.

The NDC, also highlights issues of unfair monopoly and exclusivity, stating that the deal ensures Next Gen Infraco will be the only company to offer wholesale 5G mobile data and voice services for ten years.

“All existing Mobile Network Operators (MNOs) – MTN, AT, Telecel and Internet Service Providers (ISPs) – cannot offer data and voice services to their numerous customers nationwide without passing through Next Gen Infraco,” the statement said. Next Gen Infraco would control 62.5% of every data/voice bundle package, with only 7.5% going to the government and 30% to MNOs and ISPs.

The Minority also pointed out the absence of parliamentary approval, stating that the 5G spectrum transaction awarded to Next Gen Infraco Limited is a multi-year contract, hence subject to parliamentary approval per Section 33 of the Public Financial Management Act 2016 (Act 921). They claim the Akufo-Addo/Bawumia government almost concluded the deal without Parliament’s knowledge, rendering the transaction unlawful.

Additionally, the NDC criticized the involvement of entities allegedly linked to the cronies of President Akufo-Addo and the Minister of Communications, questioning their track records. “Some of these entities have been engaged by this same government in similar arrangements that have offered no value for money for the state,” the statement said.

The government, through Minister of Communications and Digitalisation, defended the deal, stating that the shared network infrastructure for 5G is a strategic move to provide affordable, high-speed mobile broadband services, reduce the digital divide, and promote financial inclusion.

Insiders argue that auctioning the spectrum would not align with the policy decision to create a carrier-neutral infraco, which aims to address market distortion and reduce reliance on foreign control in the telecom sector.

They emphasize that the Special Purpose Vehicle (SPV) model does not impose financial commitments or liabilities on the government, with all liabilities borne by the SPV partners.

The SPV, will pay annual spectrum fees and 1percent of revenues to the government, generating multi-year revenue without requiring parliamentary approval.

The government’s decision to build a nationwide shared 4G/5G platform, aims to ensure comprehensive coverage, benefiting all users and the country as a whole.

This initiative is seen as crucial for driving technological advancement, economic growth, and digital inclusion across Ghana.

Ensuring the success and the integrity of this project is paramount for Ghana’s continued progress and reputation in the global community.

Source: Herald