Ghana Telecom Abrogates Contract With UK Company

Ghana Telecom has terminated its contract with a UK-based company for the connection of international long distance calls into Ghana. The company, Adrian Love Telecommunications Limited - ADTEL has consistently failed to abide by the terms of the contract and reneged on paying Ghana Telecom for completing calls flowing into Ghana.

Adtel owed Ghana Telecom over $700,000 as at September when the contract was terminated. JoyNEWS investigations over the last four months indicate that the last payment effected by Adtel was in February.

The contract signed during the tenure of the previous board chaired by Professor S. K. B. Asante is said to be highly unfavourable to Ghana Telecom. That board was dissolved following the unexplained resignation of the chairman and another board member Herbert Mensah.

Company officials say the rates offered Adtel were ridiculously low compared to that of other operators. The terms of the contract is said to have raised many eyebrows particularly when higher rates were offered to other companies.

Officials are tight-lipped over the exact details of the contract, but told JoyNEWS that the decision to terminate the contract will not be reversed unless the arrears are settled.

The UK- based Adtel, which was acting on behalf of SAKON- USA, has not offered any reasons for defaulting in the payment. JoyNEWS gathers that because of the lower rates being paid Ghana Telecom by the company, it was gradually annexing the businesses of its competitors.

International traffic has been dwindling over the years, particularly with the advent of VoIP. Company officials say revenue from this sector is very negligible now because rates paid for traffic using VoIP is cheap. The system is gradually replacing the multi-billion dollar legacy phone systems. Illegal VoIP operators are also worsening matters. With the termination of the Adtel contract, JoyNEWS will be finding out plans to retrieve the over $700,000.