NCA Outlines Strategic Measures To Reduce Data Cost

The Director General of the National Communications Authority (NCA), Dr. Joe Anokye, has shed light on the ongoing efforts to reduce the cost of data for Ghanaians which he said is expected to bring significant relief to millions of internet users across the nation.

Speaking with Umaru Sanda Amadu on Citi FM last Friday, he said, plans are far advanced for data prices to decrease by the last quarter of the year, which would address concerns over high data costs and poor services.

Expected to commence by the last quarter of the year, he explained that it would enable operators like AT, Telecel, and MTN to purchase bulk data without upgrading towers or equipment, leading to increased efficiency and reduced costs.

“Data prices are expected to go down, especially again with the NGIC wholesale career neutral open access, now AT, now Telecel, even MTN, they will just buy bulk, they don’t have to upgrade towers, they don’t have to buy new equipment to provide 4G, another entity is doing that.

He added, “They are supposed to launch by the last quarter of the year, and going from there we begin adding more towers. I think we should be hopeful.”

Other measures NCA has put in place, with respect to ensuring fair competition, in the face of an SMP, are the asymmetrical interconnect rate, national roaming and technology neutrality among other things.

Asymmetrical Interconnect rate

Asymmetrical interconnect rate helps the non-SMP telcos to save 30% of whatever money they pay to MTN monthly for terminating traffic on MTN. It is estimated that about 70% of all calls and even SMS terminate on MTN. So, when the interconnect traffic and its related fees are reconciled at the end of every month, MTN is a perpetual net winner across board. The NCA therefore had to step in and save the others some money just to keep them in business. NCA reported that in the first three years the asymmetrical interconnect rate intervention saved the non-SMP telcos some GHS86.6 million. This is not much compared to how much MTN invested in its network over that period, but it is a good start.

National roaming and Tech Neutrality

Again, as part of the corrective measure, the NCA has facilitated a national roaming policy between MTN and the two other players. This means customers of a network which has no or poor connectivity in a particularly community can get service from another network (MTN), which has better connectivity in that community, then MTN and the respective telco will share the revenue generated from that process.

Closely related to that is a technology neutrality policy. The most obvious manifestation of that policy is the recent award of a license to a special purpose vehicle called Next-Generation Infrastructure Company (NGIC) to establish a shared 4G and 5G infrastructure for all industry players to buy into.

Dr. Anokye explained that the licensing of NGIC means the playing field for the deployment of advanced technology (4G and 5G) will be levelled to enable all players make huge savings on what they would have spent to roll out infrastructure for 4G and 5G, and thereby be able to offer even more affordable services in the long-term.

He said NGIC is expected to roll out the first set of 4G and 5G network infrastructure by the last quarter of the year to enable all telcos and other service providers get access to nationwide 4G and 5G coverage.