Too many taxes suffocate telcos
He noted that although using a mobile phone was no longer a luxury, the numerous taxes that had been slapped on the industry had made it difficult for operators to further invest in the quality of service to compensate for the increasing number of mobile phone users.
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Mr. Laryea said this at the maiden telecom dialogue series put together by the Network of Communication Reporters (NCR) on the theme: “Moving from service quality to service excellence”.
Study report on taxes
A study conducted by PricewaterhouseCoopers (pwc), a multinational consultancy firm, for the GCT in 2015 revealed that the telecom industry was one of the most taxed sectors in Ghana.
Mobile operators are subjected to 14 different taxes and regulatory fees, in addition to various one-off charges.
The operators, according to the report, paid US$650 million in taxes each year, representing about 40 per cent of total revenue in the sector.
It further disclosed that telecom operators paid a whopping GH₵1.05 billion in total taxes to the government and its agencies in 2014 alone.
Mr Laryea, therefore, called on the government to rebalance the mobile sector specific taxes in order to drive inclusion and also encourage the telcos to invest more in their infrastructure.
Rising demand for data
The Dean of the NCR, Mr Charles Benoni Okine, pointed out that the growth drivers in the industry had shifted significantly with the rising demand for data.
He was, however, quick to add that that growth could face challenges if the concerns of consumers on rampant call drops, poor sound quality and signalling delays, fair and transparent pricing and value for money were downplayed by the sector players and the regulator.
Mr. Okine said fluctuation in signal quality within the same area and the inexplicable loss of data and airtime on consumers’ gadgets were some of the common complaints that were easily explained away by the operators, without improvement in service provision, including transparency issues and public education, especially in the age of smart phones.
He said it was to ensure improvement in service provision that the forum was held to lay bare consumers’ frustration and seek solutions thereof.
He urged the industry regulator not to hesitate in sanctioning any telco that did not live up to expectation on a consistent basis.
“The Bank of Ghana cracked the whip on two banks when it became necessary to protect depositors and the NCA can do same to protect the interest of customers,” he said.
Holding service providers accountable
The Chairman for the forum, Nana Kwaku Dei, for his part, urged journalists to hold service providers accountable.
He, however, urged them to go slow on the companies, since providing quality services was a journey which would take a bit if time.
“We may not be satisfied with the service they are providing, but we should be patient because, as a developing country, getting quality service is sometimes a slow journey but we will get there,” he stated.
He challenged the telcos to also put in a lot of effort to deliver quality services to their customers.
Customers more demanding
The Director of Regulatory Administration at the National Communications Authority (NCA), Mr Kofi Datsa, also pointed out that customers were becoming more demanding in the industry, as they no longer chose speed, quality or price but expected all three.
He said it was for that reason that the NCA was focusing on key actions required to give consumers quality service.
“We have established quality of service indicators for operators and service providers and this is monitored once every quarter in all metropolises and twice a year in all districts.
We have also purchased ultra-modern equipment which we use in monitoring the networks,” he stated.
Being part of solutions
The Minister of Communications, Mrs Ursula Owusu-Ekuful, in a speech read on her behalf, urged members of the NCR to see themselves as part of the problems and the solutions in the telecom industry.
“In your quest to help make the industry perform better, you should not just restrict yourselves to the organisation of quarterly events where issues affecting players and customers can be discussed but also be part of the solutions,” she noted.
“Your topic for today is certainly on point, as this has been a haunting complaint and there is need for the players in the industry to up their game to give customers value for money,” she added.— GB
