Ghana has completely changed its approach to 5G internet. The government will now auction new 5G licenses. This decision reverses an earlier plan that gave exclusive rights to a single company.
MTN Group and Telecel Group are expected to compete for these new licenses. This new strategy aims to speed up the rollout of 5G technology across the country. It follows significant disappointment with the previous system.
This policy shift is a major admission that Ghana's initial 5G strategy did not work. The government had previously relied on Next Gen Infraco, a state-backed wholesale provider. This company was linked to Indian billionaire Mukesh Ambani’s Reliance Industries.
Next Gen Infraco was supposed to build Ghana's 5G infrastructure under an exclusive deal. However, by March, it had only set up 49 operational 5G sites. This figure was far below the government's goal of 1,200 sites by 2027.
This large gap between promises and actual results forced the policy change. Ghana's slow 5G rollout has left it behind other African nations. For example, Nigeria has 22% 5G coverage, Kenya has 38%, and South Africa has over 60%. Ghana risked only 7% population coverage by the end of the year if the exclusive model continued.
The government's previous administration had favored the wholesale 5G approach. They hoped to copy India's Jio Platforms success. Reliance's telecom arm in India dramatically lowered data costs and expanded digital access. However, Ghana's experience with this exclusive model proved more difficult.
Moh Damush, Telecel Group Chief Executive Officer, has voiced concerns about the upcoming auction. He warned against an auction focused only on the highest bidder. Mr. Damush stated such an approach could strengthen MTN's already dominant market position. MTN currently holds about 80% of Ghana's mobile data subscribers.
Telecom spectrum is a public resource. Governments can use it to generate revenue. However, if revenue becomes the only goal, consumers might pay higher prices. Operators who spend a lot on spectrum often pass these costs on through higher data charges. This could also delay necessary network investments.
Ghana wants to be a leading digital economy. It has ambitions in financial technology (fintech) and artificial intelligence. However, these goals need modern, fast internet infrastructure. Without 5G, Ghana risks losing its competitive edge to countries with better networks.
The new target for 5G coverage is ambitious. Ghana aims for 70% population coverage by March 2027. This requires a mix of wholesale and operator-led networks. Achieving this goal quickly will need significant capital investment. It also requires available spectrum, tower infrastructure, and clear commercial incentives for telecom companies. Regulators must also coordinate effectively.
The current market dynamics will play a crucial role. If the auction focuses on coverage requirements and fair competition, it could create a more balanced telecom market. This could benefit consumers with better services and lower prices. The outcome will shape Ghana's digital future.