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Published on 2024-04-17 09:39:00
In a recent session with lawmakers, Gamtel’s Managing Director, Lamin Tunkara, revealed the challenges faced by the national telecommunications company following the liberalization of the international gateway in 2019. This policy change had a significant impact on Gamtel’s revenue, causing it to plummet from over D1 billion to D297 million.
Prior to the liberalization, Gamtel relied heavily on revenue from the international gateway, which accounted for about 80 percent of its income. After the liberalization, the company’s share of the gateway proceeds was reduced from 5 percent to 2.5 percent, with the other half allocated to the government’s security reform levy. This drop in revenue, coupled with high staff costs and lack of funding for necessary exercises, has placed Gamtel in a challenging financial position.
To counteract the revenue loss, Gamtel made efforts to diversify its investments by expanding its fiber connection infrastructure to attract more customers. However, the high cost of fiber cables, which can amount to D500,000 for every 100 meters, has hindered the company’s expansion efforts. Despite an approved budget of $5 million for this initiative, funds remain unavailable for its implementation.
In addition to financial challenges, Gamtel is also grappling with issues such as aging network infrastructure, inadequate investment, debt recovery, and high maintenance costs for fiber cuts. Reports of potential privatization have further added to the uncertainty surrounding the company, leading to staff departures.
The Minister of Communications and Digital Economy, Ousman Bah, indicated to lawmakers that the government has approved a plan to privatize Gamtel and sell Gamcel. This decision stems from the government’s inability to continue supporting the financially burdened companies due to their high levels of debt. The plan is to bring in a private partner to inject investment and help stabilize the companies financially.
Overall, Gamtel faces a complex set of challenges that require strategic planning, financial support, and effective leadership to navigate. The company’s future success hinges on its ability to address these challenges and adapt to the changing telecommunications landscape.
Read the original article on The Standard
