The Minister for Communication and Digitalisation, Ursula Owusu-Ekuful, has attributed the collapse of broadband service providers like Surfline to the 2015 decision to auction the 4G spectrum to mobile networks, notably MTN.
In an exclusive interview on the Citi Breakfast Show, Owusu-Ekuful argued that the auction granted an undue advantage to mobile operators, disadvantaging broadband providers.
She highlighted that the government is currently engaging with broadband operators to explore support mechanisms to ensure their viability.
Owusu-Ekuful explained that decisions made in 2015 directly led to the collapse of local broadband wireless operators, who could not compete once the market was opened to mobile network operators.
She emphasized that while the government initially sold spectrum to local operators with the understanding of granting them exclusivity, this promise was undermined when the 4G spectrum was auctioned to larger players like MTN.
She noted that the financial strength of MTN allowed it to dominate the high-speed data market, sidelining local entities. Owusu-Ekuful acknowledged that beyond Surfline, other providers such as Blue Broadband also exited the market due to these competitive pressures.
The Minister reiterated that the auctioning of the 4G spectrum weakened the position of broadband providers, as mobile network operators, particularly MTN, were able to leverage their financial capabilities to acquire the spectrum and dominate the market, effectively sidelining smaller, local broadband companies.
