Airtel Ghana abrogates contracts of local companies

Airtel 2Some local contractors providing Value Added Services to Airtel Ghana, are angry over an Executive decision to abrogate their contracts in favour of foreign companies.

Information available to the Ghana News Agency (GNA) indicate that the companies that are being kicked out of business had longstanding relationship with the company.

The companies offer services such as text messages, supply of equipment, short codes and caller ring back tones.

One of the contractors who spoke to the GNA on condition of anonymity, said the company’s decision is would undermine government’ efforts to create an enabling environment to boost the growth of local industries.

He said: “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 per cent, and 40 per cent for the third party; in the case of Airtel it is 70 per cent – 80 per cent for the operator, and 30 per cent- 20 per cent for the third party depending on the contractual agreement.”

Government has been working hard over the years to compel multinational companies operating to use more local content in their operations.

One of such example was the directive in August 2010 by the former Minister of Communications Mr Haruna Iddrisu giving a 30-day ultimatum to telecom operators to ensure that all their airtime vouchers or scratch cards were printed locally.

Mr Iddrisu beef was that as part of their licenses regime, telecommunications operators were supposed to work towards technology transfer, but the story however seems different when it comes to Airtel Ghana.

Mr Kwame Gyan, Corporate Relations Manager at Airtel Ghana confirmed the abrogation of contracts with some local companies, but said it was a group decision, which 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 the company respects government decision to ensure that scratch cards are printed in Ghana.

Source: GNA

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