Ursula Explains Motive Behind Award of 5G Licence to NGIC

The Minister for Communication and Digitalisation, Ursula Owusu Ekuful says past precedents informed the government’s decision to award the 5G licence to Next-Gen Infrastructure Company (NGIC), a company formed not long ago.

Concerns have been raised about the selection process that led to the company being awarded the 5G contract.

“This is a special-purpose vehicle. Once the Government took the decision that a neutral infrastructure company would be used there was no existing neutral infrastructure at the moment so it had to be specifically formed for the purpose of delivering this service based on the strategic policy decision of the government. It is borne out of our past experiences and that is why we chose not to auction it,” the Minister said at a presser on May 30.

She said the spectrum if auctioned would have delayed penetration as has been witnessed in the 4G with an attendant anticipation of only 10% penetration for the 5G.

“After analysing the nature of our telecommunication sector, it was clear that if we auctioned the spectrum, only one or two entities would be able to acquire it and roll out the network at their own pace and if 4G was introduced in this country in 2014, and we still have only 15% 4G penetration and we auctioned the 5G, within the next 10 years we will still be hovering around 10% penetration. Is that what this country wants? No.

“We want to accelerate the pace of access to telecommunications, to every Ghanaian everywhere in the country. The best vehicle the government thought would enable us to provide this service to all Ghanaians in the shortest possible time is to set up a neutral shared infrastructure company and that was set up following the policy decision taken not to auction it.”

Meanwhile, she said the NGIC was formed by Ascend Digital Solutions and K-Net, two companies she said have a track record in operating and managing shared infrastructure as well as partners including Nokia, Tech Mahindra and Radisys.

“They have also invited all MNOs to be partners in the consortium. They will all own shares in NGIC. All interested partners will also be part. The Government will hold a small share in this,” she added.