The Ghanaian government's plan to launch a 5G network by partnering with Radisys Corp., a unit of Mukesh Ambani's Reliance Industries Ltd., which will provide network infrastructure, applications, and smartphones for Ghana-based Next-Gen Infrastructure Company (NGIC), is a bad 5G deal for the debt-ridden nation, which needs funds for critical development projects, as per National Democratic Congress (NDC) statement.

Building a national 4G/ 5G network will be the first task for NGIC, the 5G Mobile Broadband Shared Infrastructure Entity. In addition, the business plans to collaborate with MNO partners to introduce smartphones and FWA CPEs with 4G and 5G capabilities at a reasonable price point in Ghana this year.

However, the legislative minority in Ghana is opposing a contract allowing the second-richest man in Asia to profit from the demand for 5G wireless service in the nation, claiming that the administration is entering into a hastily agreed-upon "sweetheart deal."

5G deal
Image Source: Reliance Industries Limited

Microsoft Corp., Nokia Oyj, and Indian outsourcer Tech Mahindra Ltd. are other NGIC partners. Ascend Digital Solutions Ltd. and K-NET, two lesser-known African telecom companies, control a 55% share in the new business. The government of Ghana has about ten percent.

A spokesman did not answer calls to the Ministry of Communications and Digitalization and a text message was sent after work hours seeking information. Requests for a response from Ascend Digital Solutions and K-NET were also not immediately answered.

The minority caucus said in the statement that the West African country could have made between $400 million and $500 million upfront if the government had chosen to hold formal bidding. Rather, the caucus asserts, the government gave a $125 million contract, to be paid in yearly payments over ten years, to Next Gen Infraco.

“The NDC caucus in Parliament holds the view that at a time that the country is in dire need of foreign exchange and non-tax revenue, it is unconscionable that the government will hand over the precious and highly sought-after 5G spectrum of the country to a shell company for a pittance,” the caucus said in the statement.

The project seeks to replicate Ambani's Jio Infocomm Ltd.'s Indian success. When Jio introduced its low-cost broadband and free voice calling telecom services there in late 2016, several competitors were forced to close while others merged.

It is commonly acknowledged that hundreds of millions of Indians now have access to inexpensive mobile data. With 470 million subscribers, Jio is India's largest mobile operator.

Africa has the youngest and fastest-growing population in the world. Despite obstacles like low-income consumers and a lack of infrastructure, global powers like the US, China, and India are fighting to influence the continent.

Over the next six years, the government of Ghana has set a lofty goal to link the whole nation to the Internet. With a population of little over 33 million, Ghana is home to three major cellular operators: MTN Ghana, Telecel Ghana, and AT, which rebranded itself from AirtelTigo last year following the sale of shares by Bharti Airtel Ltd. and Millicom International Cellular SA.

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