A deal for Mukesh Ambani, Asia’s second-richest man, to capitalize on the demand for 5G wireless services in Ghana is being opposed by the country’s parliamentary minority, which has criticized the administration for rushing into a “sweetheart deal.”
- Ghana’s parliamentary minority opposes the 5G deal with Asia’s second-richest man.
- The NDC stated that the Ghanaian government’s plan to launch a 5G network in collaboration with Mukesh Ambani’s company is detrimental to the debt-ridden country.
- Ghana’s government has set an ambitious goal of digitally connecting the entire country over the next six years.
The National Democratic Congress (NDC) has stated that the Ghanaian government’s plan to launch a 5G network in collaboration with Mukesh Ambani’s company is detrimental to the debt-ridden country, which requires funds for critical development projects.
According to Bloomberg, the minority caucus stated that the West African nation could have generated between $400 million and $500 million upfront if the government had chosen a formal bidding process.
Instead, they claim, the administration awarded a contract to Next Gen Infraco for $125 million, payable in annual installments over ten years.
The statement continues: “The NDC caucus in Parliament holds the view that at a time that the country is in dire need of foreign exchange and non-tax revenue, it is unconscionable that the government will hand over the precious and highly sought-after 5G spectrum of the country to a shell company for a pittance,” the group stated.
Radisys Corp., a unit of Ambani-controlled Reliance Industries Ltd., will provide network infrastructure, applications, and smartphones to Ghana-based NGIC, according to the terms of the agreement. The agreement grants NGIC and its strategic partners ten years of exclusive control over Ghana’s sole 5G license.
Other partners in NGIC include Nokia Oyj Indian outsourcer Tech Mahindra Ltd and Microsoft Corp.
Two lesser-known African telecom firms, Ascend Digital Solutions Ltd. and K-NET, own 55% of the new company. The Ghanaian government owns approximately 10%.
Ghana’s government has set an ambitious goal of digitally connecting the entire country over the next six years. With a population of slightly more than 33 million, Ghana has three major operators: MTN Ghana, Telecel Ghana, and AT, which changed its name from AirtelTigo last year.
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