Government losing millions of potential tax over fibre cuts – MTN

MTN Ghana has stated that the government of Ghana loses millions of Ghana cedis as a result of fibre cuts that the company has been experiencing, of which tax components could have been paid to government.

They say the company has been losing millions in recent months due to persistent fibre cuts.

According to them, they lost 39 million Ghana cedis as a result of fibre cuts suffered between October, 2018 and February, 2019.

Speaking to Journalists in Kumasi at an editors’ forum and as part of MTN Ashantifest, Corporate Service Executive of MTN, Mr. Samuel Koranteng said out of the 39 million lost as a result of fibre cuts, they would have paid a tax component of about 17.5 million Ghana cedis.

Fibre technology helps to improve quality of service by network providers.

The fibre cables are fixed in the ground to help ensure strong network connectivity in areas they have been fixed, but fibre cuts result in low quality of service.

According to MTN, activities of road contractors, illegal mining activities among others lead to fibre cuts which affect their network adversely.

Mr. Koranteng indicated that one fibre cut costs the company over 6000 Ghana cedis. He added that, from January 2019 to April 2019, the company has experienced 489 fibre cuts which have been affecting the company badly.

“From January this year to the end of April, we suffered up to 489 fibre cuts across the country. Out of this figure, 150 were in the Ashanti region. So you realize that out of the total number of regions we have, Ashanti region accounts for a very high number.”

So we also went down to look at the revenue impact for MTN and we realized that as a result of the fibre cuts we suffered from October, 2018, to end of February, we haven’t gone into March and April, the loss of revenue is approximately 39 million Ghana cedis.”

He said “when you look at the benefit government would have had out of it if we had realized that revenue, the tax component of that- that is an approximation of about 17. 5 million Ghana cedis so one fibre cut isn’t a revenue loss to MTN. It is a revenue loss to the state as well as all other businesses who use our network –our connectivity to do their business.”

“So you can imagine if we are able to do a survey of all businesses and all people who have experienced revenue loss as a result of this fibre cut, the figure will be much much bigger. If government had realized this revenue, they would have put it to national development,” he added.

MTN says it is collaborating with the Roads and Highways Ministry to arrange with contractors to help avoid the prevalent phenomenon.

MTN also appealed to the general public to help avoid fibre cuts which lead to loss of revenue to both the company and government through potential tax revenue.

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