Ghana bets on Ambani-backed 5G firm to lower broadband costs – BNN Bloomberg

(Bloomberg) — Ghana, the West African nation recovering from a debt crisis, is counting on a high-speed broadband network backed by billionaire Mukesh Ambani to lower data costs and boost economic activity.

New generation InfraCo. will begin rolling out the first 5G network on Friday, Communications and Digitalization Minister Ursula Owusu-Ekuful said in an interview. The goal is to achieve nationwide coverage by 2026, she said in a speech in the capital.

Accra-based NGIC aims to emulate the success of Ambani’s Reliance Jio Infocomm Ltd. in India. In 2016, Jio upended the nation’s telecom industry by launching low-cost data services and free voice calls, forcing consolidation and attracting subscribers. The company is credited with making mobile data affordable in the world’s most populous nation, and in the process became India’s largest mobile operator with 470 million users.

“We hope this would also democratize access to high-speed connectivity across the country,” Owusu-Ekuful said. “We know this will encourage businesses to flourish in the countryside rather than just the big cities and create economic zones, thus providing more opportunities for entrepreneurs.”

The low-cost high-speed internet service is Ghana’s latest effort to revive business activity and boost an economy recovering from its debt crisis. In July, President Nana Akufo-Addo launched an 8.2 billion cedi ($503 million) program to provide cheap loans to small and medium-sized businesses. Businesses in this segment represent 70% of the gross domestic product, according to the Ministry of Finance.

Economic growth accelerated to 6.9 percent in the second quarter from 4.7 percent in the previous three months, but was led by the mining sector. Annual growth in Africa’s biggest gold producer is set to return to pre-pandemic levels of at least 6%.

NGIC, which purchased the spectrum from Ghana’s regulators for $125 million, has exclusive rights to provide the 5G network in Ghana for the next 10 years, an arrangement that is expected to lead to lower tariffs for services, Owusu-Ekuful said. All other operators will lease from NGIC and serve their subscribers, she said.

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The main players in the country of just over 33 million people are MTN Ghana, Telecel Ghana and AT, which last year changed its name from AirtelTigo after Bharti Airtel Ltd. and Millicom International Cellular SA sold their stakes.

Under the agreement, Radisys Corp., a unit of Ambani-controlled Reliance Industries Ltd., will provide network infrastructure, applications and smartphones to NGIC.

Other partners include Nokia Oyj, Tech Mahindra Ltd. and Microsoft Corp. Two Accra-based firms – Ascend Digital Solutions Ltd. and K-NET – hold a combined 55% stake in the company, the Government of Ghana holds a 7.5% carryover stake while local mobile operators and private investors will keep the remaining shares.

Internet penetration in Ghana is about 70 percent, a gap the government is ambitiously aiming to reduce in the next six years, Owusu-Ekuful said.

(Updates with additional comments from the Minister in the second paragraph.)