Long port procedures holding back roll out schedule - VODAFONE

Accra, June 8, GNA - Vodafone says the long period it takes to clear goods at the entry ports is affecting its projected roll out of key installations to enhance quality service delivery. Briefing the Parliamentary Select Committee on Communications on a visit to the compan, David T. Venn, Chief Executive, said the unusually long period is not in the interest of planned activities and urged the authorities to assist in hastening the process. He explained that the constant changes in the exchange rate regime, adversely affects the company, causing it to make losses in the process.

"We have a lot of catching up to do. We cannot catch up if we have to wait three to four months to clear goods at the port in addition to the numerous hurdles associated with it," he said. The Vodafone Chief Executive said lack of investment in Ghana Telecom Company over the years had resulted in other mobile competitors making giant strides in the provision of several towers and base stations, which gave them a wider coverage area and customers. "Today we are way behind. But we are catching up fast and taking the necessary steps to get to that ultimate point of Vodafone standard that makes it the best and most efficient network in Ghana, the network that works."

Mr Venn emphasised Vodafone's resolve to partner government to modernize governance by networking its operations and activities by providing a computer vendor to link government offices, police stations, hospitals and schools. He said the company is investing heavily in equipment all over the country, and singled out the 200 million dollar 3G facility being installed by Huawei Technologies which he said should be ready very soon. "It is a combination of 2G and 3G equipment. We have also invested over 100 million dollars in the National Communication Backbone Company."

Mr Venn said Vodafone was keenly working at having the best call success rate in Ghana, adding that a recent independent research within Greater Accra found Vodafone as the best network, with a call success rate of 97 per cent. "We are also recruiting new staff to augment the new direction of the company. More than 7,000 jobs have been created across the country and the number is rising. The number includes distributors and vendors alike."

Mrs Susan Adjorkor Kumapley, Head, Regulatory, also called for a review of the Communication Service Tax (CST). In the company's view, this tax must be borne by consumers of telecommunication services rather than be paid by the operators, adding that industry operators will find it almost impossible to pay if it was treated as an operator's tax. Mrs Kumapley said it was becoming increasingly difficult to effect some of those payments especially those on the international traffic, since they were unable to impose local tariff laws on people outside Ghana's jurisdiction. Vodafone also expressed concern about the double taxation it has had to live with under the CST and called on law makers to support a review to make payments under the CST not only sustainable, but also acceptable.

On the registration of prepaid customers, Mrs Kumapley said the mandatory registration of prepaid customers ordered by the national security was inconceivable as the concept of prepaid service made it almost impossible to sell and register customers at the same time. "We do not, as a nation, have an effective address system in place and neither can we as a company, take photographs and fingerprints of our customers."

We will willingly cooperate with government to achieve national targets but we are a business and not a national security apparatus." Government raised more than 4.5 billion cedis in the first few months of the introduction of the CST. On the subject of sourcing cards locally, Mrs Kumapley said 30 per cent of the cards were produced locally and that the company had been doing that for some years now "unfortunately, most printing houses (with the exception of two) lack the capacity to deliver the quality and standard required." Responding to issues raised, Mr Twumasi Appiah, MP for Sene and Chairman of the Committee, said it was quite possible to increase or boost the capacity of the printing companies to make them print the cards, adding that "we must find means of creating business for local industry as well." He supported the idea of registering customers or SIM cards that were purchased, stressing that it was critical to the security of the state to identify and flush out drug dealers, money launderers and cyber fraudsters.

Mr Appiah expressed concern about the long period of clearing goods and equipment imported by the company and pledged the Committee's support to resolve the matter and ensure that losses that arose were eliminated. Professor Mike Ocquaye, a former Minister of Communications, and member of the Committee said the idea of printing top-up and call cards locally was because government realized Nigeria was doing it successfully and "we thought we could also have a similar situation here".

He explained that Nigeria had passed an Executive Legislation to make the printing of the cards locally mandatory. Nana Akomea, MP for the area where Vodafone head office is located, called for co-location of fibre network among operators to avoid duplication of resources. Currently three operators, Vodafone, MTN and GLO are at various stages of installing fibre networks to support their operations.

Mr Fred Opare-Ansah, a former Deputy Minister of Communications, called for a review of the CST, noting that, "the CST was intended as a consumer tax and never as an operator's tax.I therefore call on all the operators to come together and present a common position on the matter. If it is found that the legislation as it currently stands is not well crafted, it can come back for Parliament to take another look at it." 08 June 09