The CEO of the Chamber of Telecommunications, Ken Ashigbey has refuted suggestions that telecommunication companies have been colluding ahead of the expected increase of telecom service tariffs after the recalibration of the Value Added Tax (VAT).
Speaking on Citi TV’s Point of View, he defended the integrity of the telcos, saying the competition among the chamber’s members “is as intense as anything.”
The chamber recently announced that Airtel-Tigo, MTN and Vodafone will adjust their tariffs upwards due to the VAT recalibration announced during the Mid-Year Budget Review in July this year.
Defending the decision on Citi TV’s Point of view, Mr. Ashigbey maintained that the telcos must adjust their prices to be competitive.
Mr. Ashigbey’s assertion was also in response to the Coordinator of CUTS Ghana, Appiah Kusi Adomako that the telcos were engaging in the collusive behavior.
Mr. Adomako who was also on the programme said the telcos move to increase their tariffs on November 1, 2018 is a “collusive behavior and that is anti-competitive and in countries where we have competition law and anti-trust law, those players can be brought to justice.”
In reaction, Mr. Ashigbey maintained that competition is main determinant of price in the telecom industry.
“Our business thrives on competition. If there is any industry in this county where competition has driven price down, it is the telco industry. The only basis of competition is on price,” Mr. Ashigbey said.
He insisted that the price buildup of all the individual telcos “are completely different” and not just based on taxes.
“For us as a chamber, we don’t play prices because the prices are issues of the individual members to handle. Taxes will be just one element. There are different elements within that whole scope that members themselves will play with,” Mr. Ashigbey said.
He however assured that the Chamber of Telecommunications is opened to further discussions with the government over the imposition of taxes on operations of its members.
Possible negotiations
Mr. Ashigbey told Citi Business News earlier that “the government has asked us to send in our tax proposals so that is where we are going to engage.”
But he was doubtful any difference would be arrived at.
“I am not too sure how we would be able to possibly change this because this is law that has been passed. Our conversation going forward is to be able to support government; when the government says that it is going to push for all government payment to be digital.”
Concern from gov’t
The Deputy Minister of Communication, George Andah, said reasons given by the Chamber of Telecommunication for the increment were problematic.
Speaking on the Big Issue over the weekend he said: “Telcos are not regulated as far as their pricing is concerned. However, if the Telecom Chamber is saying that as a result of a change in the tax regime, they have had to increase their price then I have an interest to understand how the change in tax regime is influencing their prices.”
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By: Delali Adogla-Bessa/citinewsroom.com/Ghana