By: Fred Yaw
Sarpong- Daily Express
The
four companies who submitted their applications to the National Communications
Authority (NCA) to acquire 4G LTE licenses are said to be ready for the
announcement of the winners by the regulating authority.
The
National Communications Authority did announce the availability of some space
in the 800MHz for two companies to be awarded licenses in order to operate 4G
LTE in the country.
The
4G LTE network is an improved technology of 2G and 3G technologies. Basically, people
who have smart phones which are compatible to the 3G technology are able to use
their phones to browse the internet, send text, send pictures and among other
things.
Similarly,
users of smart phones which are compatible to the 4G LTE will be able to
experience much better services than what 2G and 3G provides.
The
companies who were able to meet the 9 November, 2015 deadline are Scancom Ghana
Limited, the operators of MTN; Surfline Communications Limited; Goldkey Telecom
Limited and the Migson Communications Limited.
Out
of these four companies, the regulator will select the best two winners and
subsequently award them two blocks of 2x10MHz
spectrum (4G LTE licenses) in the 800MHz Band on the 9 December, 2015.
Per
the plans of NCA, the auction of the spectrum will take place between 2
December, 2015 and 8 December, 2015 and on the 9 December, 2015 the winners
will be announced.
According
to the NCA, each of the two winners will pay about US$67.5 million for the 4G LTE
license for a period of 15 years.
The
authority said it shall proceed to assess the eligibility of the four companies
for the award of the 4G LTE licence before inviting them to participate in the
Auction.
The
National Communications Authority will take into consideration whether the
company applying for the license is a registered company under the laws of
Ghana, and duly certified to operate in Ghana.
However,
NCA said companies which are owe by foreigners must have a minimum of 35%
indigenous Ghanaian ownership in the company. “It may be a company, a joint
venture or consortium,” according to NCA.
“Applicants
who do not meet this criteria at the time of applying should submit a letter of
commitment, signed by the Authorised Representative, to have the minimum 35%
Ghanaian ownership in place within 13 months from the effective date of the license,
failing which the license duration shall be reduced by 2 years in the first
instance of the deadline and by an additional 1 year for each year in which the
Ghanaian ownership threshold is violated,” NCA added.
With
the ownership structure, the Ghanaian company shall be maintained throughout
the 15 year duration of the License.
The
entities with foreign ownership shall register with the Ghana Investment
Promotion Centre (GIPC) before commencement of service in accordance with
Section 24 of the Ghana Investment Promotion Centre (GIPC) Act, 2013 (Act 865).
“Listing
on the Ghana Stock Exchange in accordance with the Ghana Stock Exchange Listing
Regulations 1990 (LI 1509) shall be accepted as a mechanism to meet the minimum
Ghanaian shareholding requirement, where necessary,” NCA noted.
Meanwhile,
the National Communications Authority (NCA) has selected Messrs’ KPMG as the
Auctioneer for the auction process of the 800MHz Band.
The
Daily Express gathered that KPMG will now be responsible for managing the
process leading up to the auction and the actual auction. This will involve
setting out the rules of the auction and ensuring an independent and transparent
process.
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