Business News of Thursday, 12 June 2008

Source: GNA

Ghana loses number one position of internet services in West Africa

Accra, June 12, GNA - Inadequate and high cost of communications infrastructure, lack of consistent and sustained efforts in the implementation of the national ICT policy and ineffective regulatory body have been identified as some of the problems impeding the development of the telecom sector in the country.

These impediments have caused the country to lose its position as number one in the provision of internet services in the West African sub-region to Senegal. Ghana is now ranked third after Senegal and Nigeria.

The 2006 communication policy and advocacy report launched on Thursday by the Ghana Internet Services Providers Association (GISPA) said the early start made by the country in implementing the telecom sector reforms yielded some positive results, including the attraction of foreign invertors such as Scancom Ghana and Millicom International.

Throwing more light on some of the problems in the telecom sector, the report mentioned the National Communications Authority's (NCA) delay in responding to Internet Services Providers' (ISP) complaints, lack of transparent licensing procedures and the long delay in appointing NCA's Director-General and Board as some problems.

The report conducted by Comconsult Limited, a communication and marketing firm, said the unclear role for the private sector regarding the implementation of the Information Technology policy, the non-existence of an ICT policy unit at the Ministry of Communications and the inadequacy of resources for fixed network expansion were also some of the problems.

On the way forward, the report called for an urgent elimination of impediments to ICT strategy implementation, the strengthening of the capacity of the NCA and greater public and private sector cooperation for ICT policy formulation and implementation.

The report also recommended a faster approach in the privatization of Ghana Telecom and Westel to create room for the needed private sector investment required for their expansion.

The introduction of tariff reduction strategies in consultation with stakeholders, the strengthening of GISPA capacity to become active in ICT policy formulation and the elimination of regulatory challenges to facilitate increased investments by ISPs were mentioned as some of the means by which the sector could be improved.

On the contributions of ISPs to the nation's economy, the report talked about internet connectivity for public and private sector entities such as schools and other organizations.

The report also mentioned the creation of jobs and the facilitation of the establishment of a networked economy and the creation of internet dependent enterprises such as banks, academic research networks and online payment facility (e-cash).

Mr Desmond Boateng, the representative from the Ministry of Communications, promised government's preparedness to help develop the telecom sector and look into the report.