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Business News of Wednesday, 24 August 2016

Source: citifmonline.com

Expresso ‘exit’: less harm to industry – Telecom Analyst

Telecom Analyst, Fouad Chalabi has downplayed any significant impact of the possible exit of Expresso on Ghana’s telecom industry.

He argues the telecom company’s market share is quite negligible which will not adversely affect operations within the sector.

“It has no effect because they do not have any significant market share; it is not a big player which will affect the industry,” he stated.

The National Communications Authority (NCA), last week, intimated to Citi Business News, it has commenced processes to revoke Expresso’s license. According to the Director for Engineering at the NCA, Henry Kanor, the prolonged inactivity of Expresso is affecting industry stakeholders and creating a shortfall in the revenue targets of the regulator and government.

The company has also been unable to find an investor to turn around its fortunes.

Some analysts had also earlier warned that Expresso risks folding up if it failed to re-strategize its operations.

However Fouad Chalabi tells Citi Business News he is highly confident the NCA will devise pragmatic measures to compensate customers who will be affected by the exit of Expresso.

According to him, customers will equally be offered the opportunity to switch to other telecom operators of their choice as the market is competitive.

“This is where the NCA will play a role to ensure that customers of the telecom company,” he observed.

The Telecom Analyst added, “I think the NCA will ensure by giving the right notice .When the customers themselves know about this, they will make the arrangement in order to be hooked unto other operators.”

Expresso’s share of the telecom market as at the first quarter of 2016, stood at 0.36 percent.