Norway’s telecom giant, Telenor, which has been awarded the unofficial title of the company to bail Ghana Telecom out of its predicaments, is itself in serious financial problems.It is even feared that it may be so affected that it would not have the capacity of investing in Ghana.
A surprise tax bill of 2.4 billion crowns (US$323 million is the latest in the string of bad news for the leading telecom operator which is in itself, just part of the recent gloomy trend in Scandinavia.
According to a report published on the Global Wireless website, large-scale industry tax agency The SFS, disagreed with the company’s write-off of devalued Sonofon Holding shares that were sold to a company within Telenor. A long court battle is anticipated if the company is forced to cough up the extra money. It would have to borrow to cover most of the unexpected bill.
Semi-state-owned Telenor has been plagued with problems recently. Norway’s national telecom regulator PY formally ruled that the former monopoly must cut its prices on bandwidth sold by at least 25 per cent. The company’s mobile division is however considering an appeal.
Telenor press spokesman Dag Melgaard cannot rule out thousands of job cuts as the company stretches to reach an expense cut of between 10 to 15 per cent - about 4 billion crowns, the equivalent of $538 million before 2004. Telenor Mobile and Telenor Plus, the telephony, Internet and television service for home users are divisions targeted for reductions. The company also faces possible legal action after failing to follow seniority regulations when cutting 239 jobs in Telenor Business Solutions.
According to the report, across the border in Sweden, the first negative effects of widespread third-generation (3G) delays took form in job cuts at Orange. The mobile operator is offering tempting severance packages to reduce staff without firings. Orange Sweden is also removing all consultants and temporary positions.
Meanwhile, the expected date for finalizing of Business Plan by Telenor for Ghana Telecom, which was 31st October this year, has passed.
Delay in finalizing the Plan is attributed to a whooping $12 million or so performance bond requested by the Ministry for Communications and Technology, which Telenor finds too much on the high side and has vehemently objected to, Network Herald sources close to the ministry say.
According to our sources, Telenor has made it clear that it is not interested in investing in troubled GT but interested only in a management contract with the government. Meanwhile, there are grumbling about the proposed expensive cost of Telenor Management Consultancy, which is said to include hefty bonuses as success fees. Our investigations also confirmed increasing agitation within the Unions and other interested parties for the Board to retain the Ghanaian management.
