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Airtel Ghana upsets local contractors

Airtel Ghana is allegedly in the process of ending its contracts with local suppliers so it can use overseas companies.

The Ghana News Agency reportedly spoke to a number of companies Airtel is currently trying to end its contract with.

Some of those companies, which provide services such as SMS, equipment supply and caller ring back tones, have had longstanding relationships with Airtel.

One contractor, who asked not to be named, 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.”

It is not uncommon to hear third party companies that work with telecoms across Africa complaining of the tiny share of profit that reaches them from services they provide.

The move by Airtel would also go against many African government efforts, including Ghana’s, to put an emphasis on creating more homegrown technology solutions and services.

In August 2010, Ghana’s minister of communications Haruna Iddrisu issued a directive calling on operators to ensure all airtime vouchers were printed locally.

Kwame Gyan, corporate relations manager at Airtel Ghana, confirmed they were looking to end contracts with some local companies, but that it was a group decision, meaning it was happening at Airtel operations around the world.

Gyan said: “There is no plan whatsoever in place to deliberately take jobs from the local companies to give to the foreign ones.”

Posted in: Telecoms

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