An Ivory Coast consumer association denounced escalating taxes on mobile money transactions in the country and demanded the complete removal of the levies, Le Monde Afrique reported.
In a statement to the newspaper, Jean-Baptiste Koffi, president of the Confederation des Consommateurs de Cote d’Ivoire, said a 7.2 per cent increase in tax rates on mobile money payments and cash transfers damaged the country’s financial inclusion effort.
The federation, which represents ten different consumer groups in the country, stated that less than a fifth of consumers in Ivory Coast have access to bank accounts.
It noted the traditionally low cost of transactions using mobile money services had led to a “dynamic” industry, but the increase in government levies made it “more expensive for consumers to use an accessible service that has started to enter our habits.”
Le Monde Afrique estimates XOF15 billion ($25.8 million) is transacted through mobile money in Ivory Coast on a daily basis.
Tanzania’s second largest telecommunications operator is in the final stages of wholly acquiring Zanzibar Telecom (Zantel) from the United Arab Emirates’ Etisalat Group, coming barely three-and-a-half years after it bought the majority stake (85 per cent) in the telco.
Millicom International Cellular, which trades as Tigo, has written to the country’s competition watchdog, the Fair Competition Commission requesting regulatory approvals for it to acquire the entire shares of Zantel and its subsidiary, Telesis Tanzania Ltd, which provides 4G telecommunications network capacity and coverage to operators.
“FCC is investigating the intended acquisitions… parties (both legal and natural) who deem themselves as having sufficient interest in these mergers… shall file and register such interest(s) or information by way of written submissions to the FCC within 14 days,” the agency said in its January notice.
If approved, Tigo will be fighting for the top spot with Tanzania’s largest telecom operator, Vodacom as it will narrow down the subscribers number to a difference of under 200,000.
As at mid last year, Zantel had 1.07 million subscribers while Tigo had 12 million, so this merger would bring the total to 13.07 million. Vodacom has 13.27 million subscribers.
When it bought the majority stake, Tigo had said it would not change Zantel’s name, allowing it to trade under the Zantel brand, but this is bound to change after it buys out the Zanzibar government’s stake in the telecom.
This merger will further solidify competition among telecommunication players in Tanzania where seven players are scrambling for the country’s 41.8 million voice subscribers and 20.8 million mobile money users.
In December, Tigo said it was moving closer to listing on the Dar es Salaam Stock Exchange after finalising the legal requirements for an initial public offering. The telecommunications firm said it would list “soon” to comply with the Electronic and Postal Act of 2010, which requires telcos to list 25 per cent of their shares on the bourse.
“We have completed legal conversion from a private limited company to a public limited company,” it said in a statement.
Mobile telecommunications services are fundamental for the effective functioning of the State as they are critical for national security and for economic and social activity. However despite the clear importance of this service, and with its immense infrastructure and meshed networks built to support the deployment of the service, mobile network operators continue to suffer fiber cuts, which disrupts service quality and interrupts with the network.
Last year, the mobile industry recorded a monthly average of 200 fiber cuts affecting close to 38% of all network interruptions and hampering set quality of service targets within the year.
The Ghana Chamber of telecommunications has continuously advocated, that the cuts to fibre-optic cables reduce network reliability, affects customer experience on the network and increases the service provider’s operational costs which further reduces rural network expansion and affects last mile connectivity strategies.
Private developers are the biggest cause to destruction of fiber optic cables, and then contractors of roads and drainages, farmers and other utility service companies who access the road reservation corridors.
It is significant to note that incessant cuts on Ghana’s fiber optic network results in degradation of optical signal levels due to the additional splicing/joints that are created during continuous repairs and this can ultimately degrade service quality. In ensuring network improvement, service providers are faced with the challenge to replace long spans of fiber to eliminate the said joints, and this comes at huge costs and extended time in restoring network outages.
Mobile Network Operators spend about ¢17,000 cedis to repair every single cut on their network and this costs the industry about a monthly average of ¢3.4million cedis. There are also additional maintenance costs due to relocation requirements, as well as customer compensations and loss of revenue to government and service providers due to network downtime and also brand and reputational damage, which cannot be easily quantified.
Section 77 and 78 of the Electronic Communications Act 2008 (Act 775) undoubtedly makes fiber cut a criminal offence, however Ghana continues to attain the negative tag of one of the countries with the highest number of fiber cuts, irrespective of these existing laws.
Any Road, Drain or Building Contractor, GWSC and ECG Workers, Private Developer or their staff who recklessly, maliciously or negligently damages, removes or destroys fiber cables used in connection with the operation or provision of electronic communications network or service, commits an offence, and is liable on summary conviction to a fine of not more than three thousand penalty units or to a term of imprisonment of not more than five years or both.
As the mobile industry engages various stakeholders; such as the National Engineering Coordinating Team, Road Agencies, Other utilities, Road Contractors Association, GREDA etc to showcase the negative impact of these cuts on the lives of Ghanaians. We also wish to educate and alert the general public to the fact that persons who cause damage to optical fiber cables and other telecommunications infrastructure are liable to a summary conviction of 5years.
There is the need for a Multi stakeholder approach to resolving the challenge of fiber cuts. We (policy makers, regulators, operators, other utilities and operators within the built environment) all have roles to play.
At the launch of the industry CERT in October 2018, the Director General of the Telecommunications Regulator, gave clear intentions to enhance security of fiber networks. The Industry will work with the NCA to ensure that telecommunications infrastructure is characterized clearly so as Critical National Infrastructure.
It is important that as a country we treat fiber infrastructure as a critical national asset, which will warrant punitive actions against wanton destruction. As we work to create awareness of the impact of destruction of fiber network on our user experience as telecommunication customers.
The mobile industry entreats the Police, the Attorney General; and the Judiciary to support the effective criminalization of these acts to reverse the current trends.
Source: Research & Communications
Ghana Chamber of Telecommunications
Mr. Eli Hini, General manager for mobile money financial services at MTN Ghana
MTN Ghana has pledged to prioritise the safety of mobile money (MoMo) agents as some in certain parts of Ghana have become targets for criminals in recent times. They have been attacked, maimed and in some cases killed, and their monies stolen. MTN said its officials have begun educating agents in personal safety, information management and how to avoid recruiting personnel who might pose a risk to their businesses.
General manager for mobile money financial services at MTN Ghana, Eli Hini, said processes are under way with the Central Bank to set up an agent registry. He said this will ensure that those on the registry are validated, and they would be taken off the system if they caught in any malpractice.
He said the company will take finger prints and do a thorough background check on people who want to become agents to ensure that they do not have any criminal records before setting up a MoMo business with MTN. He advised agents to stop working late into the night to save their businesses from being targeted by robbers.
Helios Towers has entered into a partnership with Vulatel to work on expanding South Africa’s mobile and fixed-line infrastructure, saying that they aim to make “major greenfield wireless and fixed-line telecoms infrastructure investments”.
Helios Towers will own 66 per cent of Helios Towers South Africa (HTSA) and Vulatel the remaining 34 per cent. Raising money for expansion across Africa for Helios and the like, seeing as the continent holds a tremendous opportunity for growth.
The company predicts that South Africa will lead in the roll-out of 5G in sub-Saharan Africa and will potentially be a part of that process. HTSA, in agreement with Vulatel, will build open access infrastructure to subsequently be leased to other companies.
Helios Towers has long considered entering into the South African market, having already established a foothold in other African countries like Tanzania, Ghana, and the DRC. Of these markets, South Africa is considered one of the more stable and so HTSA is looking at opportunities to buy towers from wireless carriers, like MTN and Vodacom.
Vodafone Ghana is realigning its operation to begin the deployment of 4G to its customers in the next three months.
This means customers of Vodafone Ghana should expect to have faster internet speed and improved service quality from April this year.
The telecom firm is expected to spend about $90 million to fully deploy the 4G services to its subscribers.
“What we have done now as we speak is to put in place a technical team that’s accelerating the process to align our infrastructure to deliver 4G to our customers. The timeline has been made clear by our CEO.
“We are looking at full deployment by the second quarter of this year which is then the beginning of April 2019,” Ebenezer Amankwah, Corporate Relations Manager of Vodafone Ghana told Starr Business.
The National Communication Authority last month granted Vodafone the green light to operate 4G after winning the bid.
It follows a “successful financial negotiations,” the NCA said in a statement on Wednesday, December 26, 2018.
“This is the result of the process which begun in September 2018 when the NCA published a Request for Applications (RFA) and made available three lots of 2x5MHz in the 800MHz band,” the statement added.
Stefan Zehle, Chief Executive Officer (CEO) of Coleago Consulting Limited
Stefan Zehle, Chief Executive Officer (CEO) of Coleago Consulting Limited, has made a strong case for government to reduce the cost of spectrum to make it very affordable, arguing that when spectrum lies fallow, it benefits no one.
He made this statement during his presentation to participants at an Industry breakfast meeting on the topic; Spectrum policy and licensing to ensure a sustainable competitive telecoms market in Ghana at the Labadi Beach Hotel in Accra organized by the Chamber.
Zehle maintained that, there’s huge investment in LTE in Ghana, but little revenue increase
He said “Ghana, like most markets, despite the investment in LTE has very little incremental revenue generated by mobile operators”.
He argued that at $67.5 million for 2x10MHz, mobile operators (AirtelTigo, Vodafone and Glo) would not be able to buy 800MHz or 700MHz spectrum and deploy it.
In addition, he stated that the affected operators may not be able to renew 900MHz if the price is similar to 800MHz and may stop funding their businesses, and, in the process, force further consolidation and/or exit.
Coleago recommends that government should assign the remaining 800MHz and 700MHz spectrum to the existing mobile operators, renew 900MHz and 1800MHz spectrum rights, as well as ensure fairness towards MTN, which has already paid $67.5 million for 4G, to ensure a competitive three-player market.
To offer MTN an equivalent deal which is fair, he asked government to give MTN a further 2x10MHz of 800MHz next to its existing holding, renewal of 900 & 1800MHz with a term of 15 years, plus unexpired term of existing license, technology and service neutrality for all spectrum bands, as well as permission for active network sharing, spectrum sharing and freedom to offer wholesale services.
Stefan said MTN paid $67.5m, and although that cost is high compared to spectrum sold across the world, it could be treated as an advance and justification for giving them a further 2x10MHz of 800MHz.
On revenue potential and pricing, he opined that MTN may see the deal as fair if it paid the same $6.25 million for renewal and paid no additional fee for a further 2x10MHz of 800MHz.
According to him, MTN would end up with 2x20MHz of 800MHz, having paid US$67.5 million, which is the same price per MHz, as the other mobile operators would pay for 2x10MHz of 700MHz spectrum.
To him, other mobile operators apart from MTN may be prepared to pay $25 million to $40 million for the package.
Mr. Zehle explained that at $40 million, nominally, this may be broken down into $33.75 for 2x10MHz of 700MHz spectrum and $6.25 million for the renewal.
This, he believes, could raise revenue from $78 million to $126 million for government.
According to him, without access to 800/700MHz spectrum for 4G coverage, it may not be possible to compete effectively with MTN.
Zehle proposed network and spectrum sharing among mobile network operators yet to deploy 4G, which, he said, would help to reduce their cost base and maintain a three-player market.
He made a strong case for Unified License, saying it has many advantages and implications.
The Board Chairman of the National Communications Authority, Mr. Kwaku Sakyi-Addo in his closing remarks at the meeting, commended the Chamber for convening what he described as an “insightful meeting”. He used the opportunity to assure participants that as an Authority, they will take into consideration the presentations and comments espoused at the meeting with the aim to work on them, together with the industry.
He also underscored the need for continuous engagement at all levels to find innovative and sustainable solutions to the effective distribution and use of Spectrum for National development and the growth of the telecommunications industry, which remains, a critical pillar for national development
Patricia Obo-Nai, Fixed Business and Customer Operations Director
Vodafone Ghana has announced the launch of the Car Master Bundle for spare parts dealers, garage owners and the general auto industry. It provides a package for voice calls, downloads, voice notes, IDD for overseas partners and free mobile money transfers for payments. The bundle makes best use of on-net and off-net talk time, data and mobile money.
Vodafone is targeting customers across the country and in areas such as Abossey-Okai, Suame Magazine and Kokompe. These markets are made up of associations, business owners, shop managers and handymen. All these categories of customers use voice, data and IDD when interacting with their customers whilst being heavily reliant on mobile money for payments.
Zimbabwe’s president Emmerson Mnangagwa vowed to review a controversial 2 per cent electronic money transfer tax following fierce criticism of the levy from consumers and businesses, reports Mobile World Live.
Writing in a column in national newspaper Sunday News, Mnangagwa added the government “took to heart the cry that the 2 per cent transactional tax has compounded the tax burden for both business and for the consumer” and would reassess it along with upcoming laws covering the financial sector.
The tax was unveiled alongside a number of other cash-raising measures by Zimbabwe’s finance minister Mthuli Ncube in October. It replaced a previous set fee levied on the cost of mobile money transfers with a percentage of the total value of each payment.
Using official 2017 statistics on total mobile money transaction value, the tax hike increases government takings from the service by almost ten times.
The move proved extremely unpopular in the country. The Standard last week reported Ncube was forced to apologise to a parliamentary committee for not engaging with businesses, stakeholders or consumers before introducing the “ill-thought-out” tax.
Ncube’s comments come as analysts in the country told the newspaper prices had “shot up” for customers with some reporting an 18 per cent drop in mobile transactions.
Vodafone Ghana Foundation has taken its ongoing National Coding Programme to a higher notch by introducing modules that will equip the coders with digital marketing and commercial skills, reports Ghanaweb.
The first session of this training which is the 2nd phase of Vodafone’s National Coding initiative, will run for a whole week from 12th November in Takoradi.
The team of digital and marketing experts delivering this programme, will subsequently visit the other regions and will take participants through various modules on how they can apply and monetize their coding skills.
Commenting, Chief Executive of Vodafone Ghana, Yolanda Cuba, said:
“We are on a crucial path to ensure the digital transformation sweeping the world leaves no one behind in Ghana, no matter where they may be.”
“This programme has been designed to empower individuals with basic knowledge in coding including topics such as business management and digital marketing to enable them monetize their skills.
“There is an enormous demand out there for people with coding skills and we want them to take advantage of the opportunities.”
Three months ago, Vodafone launched a National Coding Programme in line with the company’s strategy to use technology for the enhancement of education and promotion of youth employment in the country.
The company is on a journey to train 10,000 youth in coding and ICT skills over a period of 5 years. Over 150 participants have already benefited from this initiative since Launch date.
Participants who wish to join this wave of digitization can do so by completing the application through the link: https://goo.gl/forms/8Mun16lfoJTZJNJT2
