Ghana is accelerating its drive to expand 4G mobile broadband coverage nationwide. Two out of three MNOs in the country [mobile network operators] have been approved to redeploy existing 2G and 3G spectrum holdings for 4G use, provided they pay an annual premium.
The regulator, the National Communications Authority, will hope that these concessions will provide sufficient financial incentives for AT and Telecel Ghana (formerly AirtelTigo and Vodafone Ghana, respectively) and other stakeholders to increase investment in mobile broadband infrastructure and eventually push the country to achieve nationwide 4G coverage.
A sequence of events, which began in June 2020, has culminated in this regulatory approach to 4G deployment. First, MTN Ghana was declared a significant market power (over 40% market share in both voice and data segments) in June 2020, accompanied by tariff-based remedies. Second, a long-awaited and most important corrective measure introduced only in July 2023 – “Technology Neutrality” – is designed to help non-major market players launch 4G services within existing spectrum allocations or re-exploit spectrum for improving the quality of 4G service.
MTN Ghana, which acquired Ghana’s first 4G spectrum at an auction, will undoubtedly look to use the first mover advantage to maintain its position in the market. It also benefits from the technology neutrality initiative to optimize the utility of its spectrum holdings.
Considering all of the above, it was no surprise when, a month later, in August, the government approved plans to create a neutral shared network to promote 4G and 5G services, in partnership with private investors and telcos. The model adopted by Ghana means that there will be no auction of 5G spectrum nor individual holdings of 5G spectrum by any operator, but rather it will be given to the common network.
These developments are expected to boost 4G and 5G adoption in the country.
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