Audio By Carbonatix
Some local contractors providing various Value Added Services (VAS) to Airtel Ghana are currently raging with anger over an executive decision by the telecom operator to allegedly abrogate its contracts with local companies to engage the services of foreign companies.
It must be noted that some of these companies that are being kicked out of business had longstanding relationship with the teleco company even when it used to be Zain before it was taken over by Airtel in 2010. They offered services such as text messages, supplying equipment, shortcodes, caller ring back tones, etc.
Industry watchers say the decision would keep many local companies out of business as well as put thousands out of job.
Interestingly, when it comes to revenue share for third party in the telecommunications sector, Airtel pays the least to its service providers. Whilst the revenue share for the operator in the case of MTN is 60%, and 40% for the third party; in the case of Airtel it is 70% - 80% for the operator, and 30% - 20% for the third party depending on the contractual agreement.
The company’s decision is also seen as a smack on government’s face, thus making nonsense of its effort to create an enabling environment to boost the growth of local industries. Government has been working hard over the years to compel multinational companies operating in Ghana to use more local contents in their operations.
For instance, in August 2010 the then Minister of Communications Haruna Iddrisu issued a 30-day ultimatum to telecom operators to ensure that all their airtime voucher or scratch cards are printed locally.
He noted that as part of their licenses regime, telecommunications operators are supposed to work towards technology transfer.
However, the story seems different when it comes to Airtel Ghana.
Meanwhile, Corporate Relations Manager at Airtel Ghana, Kwame Gyan has confirmed the abrogation of contracts with some local companies to Myjoyonline.com but said it was a group decision, which he said goes beyond the powers of the country office.
“There is no plan or whatsoever in place to deliberately take jobs from the local companies to give to the foreign ones.”
He said, for instance, the company rather respected the government decision to ensure that scratch cards are printed in Ghana, by ensuring that scratch cards are not printed outside the country.
He said the company considers two issues before signing a provider or abrogating a contract: the product should be compatible with their system, and also profitable.
“What sometimes happens is that we have some cases that from the group’s office we have the group getting certain contract that cut across [countries]… so there are times when some of the VAS that we have, have been given to us from the group level to serve either the Anglophone part, some are also serving both Anglophone and Francophone.”
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
Gov’t invests GH¢443m in Free Primary Health Care – Dr Asare Bampoe
27 minutes -
ECG announces power outages in parts of Accra West and Central regions
45 minutes -
Otumfuo calls for urgent action to end maternal deaths in Ghana
48 minutes -
Prioritise Bawumia’s interest and vote on merit – NPP elder urges delegates Â
49 minutes -
Jason Arday death ‘tragedy on so many levels’ says PM
2 hours -
Rotary Club donates phototherapy machine to Ussher Hospital
2 hours -
Analysis: Jason Arday’s death will send shockwaves through a divided academia
2 hours -
CJ’s vacation warrants not limited to politically sensitive cases – Victoria Bright
3 hours -
Parts of Accra to experience power interruption on Sunday for emergency GRIDCo tower restoration
3 hours -
Dafeamekpor defends Ayine’s handling of Aksa case, faults past AGs
4 hours -
Luv FM High School Debate: Afigyaman, OKESS seal Round of 16 spots in style
4 hours -
Dafeamekpor urges Parliament to stay out of Aksa probe, backs expert-led inquiry
4 hours -
The rise and rise of Azigi
4 hours -
Is Angela List being targeted? Government must reconsider the Adamus revocation
4 hours -
Bezos-backed consortium buys a third of Liverpool
4 hours