2nd Quarter Report - Digital GhanaEmail Address [email protected], [email protected] Auditors Hydefynn & Osei Chartered Accountants 2nd Bannerman Road, High Street, Accra Opposite CEPS

2010

National Communications Authority - NCA

06/05/2010

1st Quarter Report

National Communications Authority – 1st Quarter Report 2010

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Table of Contents Contact Address ........................................................................................................................... 5

Executive Summary ..................................................................................................................... 8

Telecommunications Development ......................................................................................... 10

Licensing .................................................................................................................................. 10

Broadband Wireless Access (BWA) Licenses in the 2500 – 2690 MHz Band ................. 10

Quality of Service (QoS) ........................................................................................................ 12

Interconnect ............................................................................................................................. 15

Quality of Service Monitoring .............................................................................................. 15

Billing Verification .................................................................................................................. 18

Numbering .............................................................................................................................. 21

Number Portability ................................................................................................................ 21

Market Trends ......................................................................................................................... 21

Market Share ........................................................................................................................... 23

Engineering ................................................................................................................................. 25

Frequency Issues ..................................................................................................................... 25

Licensing of FM Radio Broadcasting Services .................................................................... 27

Licenses Issued for TV Broadcasting Services .................................................................... 27

Digital Migration Strategy ..................................................................................................... 28

Spectrum Monitoring ............................................................................................................. 28

Technical Studies .................................................................................................................... 29

Financial Performance ............................................................................................................... 30

Revenue .................................................................................................................................... 30

Expenditure ............................................................................................................................. 30

Comparison between Revenue and Expenditure .............................................................. 30


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Cash & Bank Balances ............................................................................................................ 30

Debtors ..................................................................................................................................... 31

Prepayments and Deposits.................................................................................................... 31

ICT Master Plan ...................................................................................................................... 32

Systems Development ............................................................................................................ 32

Business Continuity/ Disaster Recovery Plan ................................................................... 32

Corporate Mailing System .................................................................................................... 32

Website ..................................................................................................................................... 32

Internet ..................................................................................................................................... 33

Information Security Policy .................................................................................................. 33

Communication ...................................................................................................................... 33

Corporate Governance, Compliance, Consumer Affairs and Legal ............................................... 34

Board of Directors ................................................................................................................... 34

Appointment and Composition of the Board ..................................................................... 34

Board Meetings ....................................................................................................................... 35

Conflict of Interest Code ........................................................................................................ 36

Board Members Fees .............................................................................................................. 36

Major Decisions Made or Resolutions Passed by the Board ............................................ 36

Compliance with Terms of Licence by Operators .............................................................. 36

Complaints Received – Type, Resolved and Outstanding ............................................... 37

Legal Disputes ......................................................................................................................... 37

Human Resources Development ................................................................................................... 38

Organization Structure .......................................................................................................... 38

Human Resources Review ............................................................................................................. 38

Employee Statistics ................................................................................................................. 38


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Regular Staff ............................................................................................................................ 38

Temporary Staff ...................................................................................................................... 38

Recruitment ............................................................................................................................. 39

Separation ................................................................................................................................ 39

Health & Safety Programs ..................................................................................................... 39

Medical Policy ......................................................................................................................... 39

Training and Capacity Building ........................................................................................... 40

Employee Provident Fund .................................................................................................... 40

Performance Management System ...................................................................................... 40

Review of Staff Conditions of Service ................................................................................. 40

Employees’ Code of Conduct ............................................................................................... 40

Social Responsibility Program .............................................................................................. 41

Implementation of the Disability Act .................................................................................. 41

Special Projects ........................................................................................................................ 42

Guidelines for the Installation and Management of Communication Towers .......................... 42

SIM Card/Chip Registration ..................................................................................................... 42

Monitoring and Enforcement Activities ................................................................................... 43

International Events Held ..................................................................................................... 43

Investment in the Communications Market ....................................................................... 43

Way Forward .......................................................................................................................... 43


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Contact Address Director General Mr. Bernard A. Forson Jr.

Secretary to the Board Mrs. Abena K. Asafu-Adjei

Registered Office

No. 1 First Rangoon Close Plot No. 35 Switchback Road Cantonments, Accra

Business/Postal Address P.O.BOX CT 1568 Cantonments, Accra Ghana West Africa

Telephone Number (s)

+233 - (0)21 – 776621 +233 - (0)21 – 771701

Fax Number +233 - (0)21 – 763449

Web Address http://www.nca.gov.gh

Email Address [email protected], [email protected]

Auditors Hydefynn & Osei Chartered Accountants 2nd Bannerman Road, High Street, Accra Opposite CEPS Office P.O. Box GPO 1433, Accra Tel:0302-663421/662127 Fax:0302-666611 Email: [email protected]

Bankers

Bank of Ghana

High Street, Accra Ghana Commercial Bank Limited

High Street Accra

Ecobank (Ghana) Limited

19 Seventh Avenue, Ridge West PMB GPO, Accra

First Atlantic Merchant Bank Limited

Number One Seventh Avenue P. O. Box CT 1620 Cantonments, Accra

http://www.nca.gov.gh/

mailto:[email protected]


mailto:Hydefynn

tel:0302-663421/662127



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Nature of Business and Principal Activities

The NCA is the central body with the mandate to license and regulate communications activities and services in the country; and to provide for related purposes. Its principal activities include the following:

Advise the Minister of Communications on matters related to the communications industry within the country and globally, and also on policies that may encourage investment and innovation in the industry;

Implement policy directives from the Ministry of Communications;

Classify communication services into public communication services, private communication services, value added services etc.

Determine and review applications for communication service licenses and Authorisations;

Grant communication licenses;

Establish a frequency plan, assign, allocate and regulate the use of frequencies;

Regulate and monitor Licensees and Authorisation Holders;

Ensure fair competition amongst Licensees;

Set national communications standards, monitor and ensure compliance with the said standards;

Certify and test communications equipment to ensure compliance with international standards and environmental health and safety standards;

Issue guidelines and set technical standards from time to time;


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Establish and monitor quality of service indicators for operators and service providers;

Establish and manage the national numbering plan for network and application services;

Establish reporting requirements for operators and service providers;

Maintain a register of Licensees, Authorisation Holders and interests of Board Members, among others; and

Investigate and resolve disputes amongst operators (in respect of interconnection, sharing facilities and utility installations) and between service providers and consumers (in respect of rates, billings, and provision of services, amongst others);

Mission Statement

To regulate the communications industry by setting and enforcing high standards of competence and performance to enable it to contribute significantly and fairly to the nation’s prosperity through the provision of efficient and competitive services.

Vision

To become the most forward-looking and innovative Communications Regulatory Authority in the sub-region; by creating and maintaining an efficient, transparent and business friendly environment to enable Ghana become the premier destination of ICT investment in the sub-region.


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Executive Summary

The telecom market experienced a growth rate of 8.14% during the first quarter of 2010 as against 6.08% in the last quarter of 2009. The total access lines at the end of the first quarter stood at 16,628,585. This represents a penetration rate of 72.1 %.

Mobile telephony accounted for 98.2% of the total access lines of about 16,333,371. Fixed access lines increased from 267,389 in the fourth quarter 2009 to 295,214 as at the end of the first quarter 2010, representing an increase of 10.41%. This represents 1.80% of the total telecom market share. All the Mobile Cellular Operators complied with their license conditions on call completion, call congestion, and call drop. However, quality of service (QoS) dropped marginally during the quarter. The average call completion rate for the industry declined marginally from 93.97% in the fourth quarter of 2009 to 93.47% during quarter the quarter under review. The call congestion rate also worsened during the period, that is, the rate increased from an industry average of 0.20% during the last quarter of 2009 to 0.38% by March 2010. The average call drop rate for the industry was 1.42% against the license condition of 3%. With the exception of Vodafone and MTN, all other interconnect routes operated under the utilization rate of 80%. Average cost of making local calls within networks was GHC 0.01299, an increase of GHC 0.0108 from the fourth quarter of 2009. This was due to an increment in the tariff by TiGo on-net calls. However, compared to a year ago, the average costs of making on- net calls was GHC 0.0030 less. The average end-user tariff for Data Services (2G, 3G, etc.) increased from 0.331/MB in the last quarter of 2009 to 0.3988/MB during the quarter under review.


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The Authority inspected and passed a number of communications equipment at the various points of entry. All equipment inspected were found to be in compliance with the internationally approved standards. The Authority recorded a budget surplus of GH¢5.51 million from January to March 2010. Revenue for the quarter was GH¢11.04 million as against a budget of GH¢10.08 million. There were no changes to the membership of the Board of the Authority during the quarter under review.


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Telecommunications Development

Licensing Broadband Wireless Access (BWA) Licenses in the 2500 – 2690 MHz Band

In pursuance of its powers under Section 3(c) of NCA Act 769 of 2008, the Authority on 16th March, 2010, published an Invitation for Applications for the award of Licenses for the operation and provision of Broadband Wireless Access (BWA) services in the 2500 – 2690 MHz band. The invitation for applications was preceded by a public consultation process which started in the fourth quarter of 2009 and completed on 7th January, 2010. The public comments were collated and discussed by the Technical committee, Management and the Operations sub-committee of the Board, which made recommendations for amendment of the Selection and Award Procedure document. The Board approved the amendments and authorized the invitation of applications according to the following timetable:

S/No.

Activity

Begins (2010)

Ends (2010)

1. Press Release to invite applications 16th March

2. Posting of Selection and Award Procedure Document on NCA website

16th March

3. Posting of Draft Licence on NCA website 4th May

4. Submission of Application & Proposals to the NCA

4th May 30th June 1700hrs GMT

5. Opening of Proposals by the NCA/ Balloting for Order of Presentation

30th June 1730hrs GMT

6. Evaluation of Submitted Proposals by Evaluation Committee 5th July 23rd July

7. Business Presentations by Qualified Applicants to Evaluation Committee

26th July 30th July

8. Pre-Auction meeting 2nd August

9. Payment of Bid Deposit 3rd August 6th August

10. Auction Process 9th August 13th August

11. Announcement of Winners 17th August

12. Payment of Minimum Reserve Price 18th August 24th August


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S/No.

Activity

Begins (2010)

Ends (2010)

13. Payment of Difference between Final Auction Price and the Minimum Reserve Price

18th August 31st August

As per the above time table, the deadline for submission of applications shall be by close of business on June 30, 2010. VSAT Carrier Network Licence

During the quarter, the Authority finalized the VSAT Carrier Licence to be issued to GS Telecom. Licence/Authorisations

The Authority granted licences/authorizations to a number of institutions during the period. Summary and details of Licences/authorizations granted are as shown in tables one (1) and two (2): Table 1 – Summary Licences/Authorizations

S/No. Type of Service No. Authorized

1. Dealership Licence 2

2. VSAT Terminals 2

3. ISP/Public Data 1

4. Type Approvals 3

Table 2 – Details of Licences/Authorizations granted No.

Name of Company Licence/Authorisation Type Date Authorised

1 Certified Technology Services Limited

Internet Data Service, VSAT and Spread Spectrum 2.4 & 5.8GHz

12/01/10

2 Alpha Offshore Drilling Services Company

Installation of one (1) VSAT Terminal

19/03/10

3 SBM Digital Class “B” Dealership Licence 05/02/10

4 Celect Distribution Class “A” Dealership Licence 19/03/10


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Table 3 – Details of type approvals granted No.

Name of Company Type Approval Date Authorised

1 ORBCOMM AFRICA LLC

ORBCOMM Communicators 30/12/ 09

2 EMERSON FZE Emerson WLAN Instruments 14/01/10

3 MAIN ONE CABLE COMPANY

Submarine Line Terminating Equipment

14/01/10

Development of National ICT Standards and Type Approvals

Two (2) regulatory documents have been completed since the last quarter in accordance with Sections 66, 67, 4(t) and 97(i) of the Electronic Communications Act, Act 775 of 2008. They are: 1. National Specifications and Technical Standards 2. Equipment Type Approval Guidelines The Authority is awaiting a meeting with Ghana Standards Board (GSB) on the National Specifications and Technical Standards. The Equipment Type Approval Guidelines are pending Board’s review and approval. During the quarter, the draft Guidelines for the Erection of Communications Towers was completed and is pending Ministerial approval.

Quality of Service (QoS)

The analyzed monthly network quality reports received from Operators were as follows: Call Completion

As per the Licence conditions, call completion should be equal to or more than seventy per cent (70%). Call Completion data received from operators over the months, as illustrated in Chart 1 below; indicated that all Operators surpassed the minimum call completion rate of 70%.


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Figure 1: Call Completion by Cellular Network

The call completion rates for all operators showed a stable trend. Vodafone and TiGo operated below the industry average of 93.47%. Call Congestion

As per the License conditions, call congestion rate should be less than one per cent (1%). Call Congestion data received from operators over the months are as illustrated in the Chart 2 below. Figure 2: Call Congestion of Cellular Operators


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All Operators performed better than the License Condition, though Call congestion declined in the first quarter from an industry average of 0.20% in January to 0.38% in March.

MTN had a stable congestion rate of 0.22%, the same as in the last quarter of 2009 as against the industry average of 0.26%.

TiGo’s Call Congestion rate improved from an average of 0.34% in the Fourth Quarter of 2009 to 0.20% as at 31th March 2010.

Vodafone’s average Call Congestion rate dropped significally from 0.29% in the last quarter of 2009 to 0.52% in March 2010.

The average congestion rate on Zain’s network remained relatively the same over the two quarters but improved significantly in the last two months of the first quarter 2010.

Call Drop During the quarter all Operators were in compliance with the license condition for call drop rate of three (3%) or less. The average call drop rate over the period was 1.44% compared with the last quarter of 2009 of 1.61%. The chart below shows operator call drop performance for the quarter. Figure 3: Call drop of Cellular Operators


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The industry call drop rate has improved from 1.51% in January to 1.42% in March. This could be attributed to the decline in the Call Drop rate of Zain which has benefitted from the closure of BNC systems in February 2010 which were causing inteference to the network.

Interconnect

There was congestion at the Vodafone end of their interconnect route(s) to MTN in Accra and Kumasi on some days in January 2010. The Authority directed Vodafone and MTN to ensure that both routes were expanded by April 30, 2010. All other interconnect routes capacity operated under the utilization threshold rate of 80%.

Quality of Service Monitoring

During this period, the Authority conducted (QoS) monitoring in the following areas: i. New Year Cross Over in Accra and Kumasi:

ACCRA

a. The suburbs in the Accra metropolis monitored during the New Year generally had good outdoor signals for all networks.

b. The Call Audio Quality was mostly good and excellent for all operators.

c. TiGo and Vodafone were compliant with their QoS license obligations.

d. However, the call setup time on Vodafone, Zain and Kasapa networks were beyond the license condition.

e. MTN recorded high congestion and consequently was extremely difficult to make calls to and from the network during the cross over into the New Year at Dansoman. This lasted for about 3 hours between the hours of 12am to 3am on 1st January 2010.

f. The high congestion on MTN was also experienced at Russia, Lashibi and Sakumono areas.


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g. Zain had severe call drops as well as bad speech quality at Spintex and Baatsona areas.

h. Kasapa had high Call congestion especially at Spintex and Baatsona. KUMASI

a. During the cross over into the New Year 2010, Vodafone and TiGo were compliant with their license thresholds whilst users of MTN, Zain and Kasapa experienced congestion, dropped calls and delayed call set up.

b. The severe call congestion on MTN’s nework reduced after a day into the New Year 2010 though it was still not in compliance with license thresholds.

c. There were persistent high dropped calls on Zain and call congestion on Kasapa for two days after the crossover into 2010.

ii. Winneba, Cape Coast and Elmina:

A follow-up test was conducted during February 2010 to verify the claims by Cellular Operators on resolving their respective poor service quality identified by the Authority in an earlier test conducted in October, 2009.

The findings on the quality of service experienced are summarized below:

Winneba a. The Call Congestion rates have worsened on TiGo and Kasapa

whilst the Drop Call Rates have worsened on Zain and TiGo. b. MTN was complaint on all licence thresholds except for their

Drop Call rate. c. Vodafone was compliant on all licence thresholds.

Cape Coast and Elmina

a. MTN, TiGo and Kasapa are still non-compliant to the licence Call Congestion threshold.

b. TiGo is non-compliant with its call drop rate.


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c. Zain had severe drop calls in the metropolis, and as a result, failed to achieve the minimum call completion requirement of 70%.

d. Vodafone was compliant on all licence thresholds. e. Some of the suburbs in the Metropolis which experienced poor

quality of service were the Regional Office area, Abura, University of Cape Coast campus and Elmina Township.

iii. Sekondi Takoradi

a. The call congestion rate of MTN deteriorated around Market Circle and Kwesimintsim suburbs.

b. Kasapa and TiGo were compliant on the licence thresholds except for Call Congestion.

c. Vodafone and Zain were compliant on all licence thresholds.

iv. Remedies The NCA issued directives to Operators who were still non-compliant to rectify the anomalies by May 6, 2010 or face sanctions.


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Standards and Tariffs

Billing Verification During the period under review, Billing Verification was conducted on individual Operators’ networks to verify end-user tariffs as advertised by them.

Mobile Below is a table showing the industry average for the first quarter of the year 2010 compared to the previous quarter as well as the first quarter of 2009. Table 4: Industry Average Tariffs for Mobile Services

Industry Average- 1Q 2009



On-Net Calls 0.1329 0.1191 0.1299

Calls to Other Local Networks

0.1520 0.1431 0.1491

UK 0.2124 0.2568 0.3052

USA 0.1635 0.1583 0.1616

Canada 0.1635 0.1583 0.1616

Italy 0.3172 0.3748 0.4244

Nigeria 0.2204 0.2183 0.2524

South Africa 0.2949 0.3543 0.4512

Germany 0.2872 0.2565 0.3332

China 0.1828 0.1583 0.2236

UAE 0.3430 0.3740 0.3672

On-net SMS 0.0386 0.0390 0.0405

SMS-Other Networks 0.0463 0.0448 0.0448

SMS-IDD 0.0889 0.0952 0.0952

Data 0.545/MB 0.331/MB 0.3988 per MB

Note that all rates are per minute unless otherwise stated. However, actual billing is done per second.


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Industry Tariff Trends

The average cost of making local calls within networks increased by 9.07% in the first quarter of the year compared to the last quarter of 2009. This is due to an increment in the tariff for TiGo’s on-net calls. However, compared to a year ago, average cost for making on-net calls is GHc 0.0030 lower.

The average cost of local calls to other networks increased by 4% due to the increment by TiGo.

The average cost of on-net SMS rose by 3.8% compared to the last quarter of 2009. The average cost of on-net SMS increased by 4.9% as compared to previous year, i.e. 1Q 2009.

Fixed For fixed services, the average cost per minute of On-net calls and calls to other fixed networks were reduced by 50.88% compared to the last quarter of 2009. Average cost of calls to mobile networks and SMS remained the same as the last quarter of 2009. Average international cost rates however increased for all destinations during the quarter. Table 5 below shows the industry average for the first and fourth quarters of 2009 as well as the first quarter of 2010. Table 5: Industry Average Tariffs for Fixed Services

Industry Average- 1Q & 2Q 2009

Industry Average – 4Q 2009.

Industry Average – 1Q 2010.

On-Net Calls 0.0515 0.09 0.05965

Other Local Networks (Fixed)

0.0515 0.09 0.05965

Other Local Networks (Mobile) 0.1285 0.1284 0.1284

UK 0.2033 0.2033 0.36

USA 0.1429 0.1429 0.19

Canada 0.1429 0.1429 0.19


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Italy 0.3545 0.3545 0.49

Nigeria 0.1996 0.1996 0.36

South Africa 0.3328 0.3328 0.39

Germany 0.316 0.316 0.36

China 0.1417 0.1417 0.19

UAE 0.31125 0.31125 0.39

SMS-On Net 0.04 0.04 0.04

SMS-Other Networks 0.04 0.04 0.04

SMS-IDD 0.12 0.12 0.12


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Numbering

GT Vodafone Fixed Line Migration

According to the migration plan agreed upon by both the Authority and GT-Vodafone, this first quarter falls within the pre-announcement stage. Consequently, the Authority commenced public announcements in the media, whilst GT-Vodafone used its call centre to inform and educate its fixed line customers about the impending changes. The next stage of the implementation will be the parallel stage which will commence by first of May, 2010. The Authority has informed all local and foreign operators through the International Telecommunications Union (ITU) about this implementation plan.

Number Portability

The Authority organized its first public consultative workshop on Mobile Number Portability (MNP) in February, 2010. The workshop signaled the launch of a series of meetings that will eventuality lead to the implementation of MNP in Ghana by October, 2011.

Market Trends The telecom market experienced a growth of 8.14% during the quarter under review. Total access lines as at the end of the quarter was 16,628,585. This represents a penetration rate of 72.1%. Mobile telephony accounted for 98.2% of the total access lines of about 16,333,371. The charts below show access lines trends during the quarter.


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Figure 4: Access lines by Mobile Operator

Overall, Mobile telephony access lines increased by 8.1% during the quarter with Vodafone recording the highest increase of 31.93%, MTN 5.34%, TiGo 3.4%, and Zain 2.8%. Kasapa recorded a reduction of 3.2% in its access lines. Glo Mobile Ghana Limited, the 6th Mobile Licence holder has not yet started operations. Trends in Access Lines – Fixed Telephony On the other hand, fixed access lines increased from 267,389 in the fourth quarter of 2009 to 295,214 by the end of the first quarter of 2010, representing an increase of 10.41%. This represented 1.80% of the total market share. Of the total fixed access lines, Vodafone’s increased from 265,236 to 291,069 during the quarter whilst Zain total fixed lines increased to 4,145 representing a 91% increase over the previous quarter.


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Figure 5: Access lines by Fixed Operator

Market Share Cellular Mobile MTN increased its market share over the quarter to 51.60% with 8,428,378

access lines in March 2010. TiGo had a stable market share of 21.26% over quarter with 3,535,091 access lines in March. Vodafone Mobile continues to decline in market share ending the first quarter with 2,812,903 access lines in March representing 17.22% of cellular mobile market share. Kasapa and Zain also had their respective market shares decline to 1.40% and 8.14% at the end of the first quarter 2010. The chart below shows the market share by mobile operator.

Figure 6: Market Share – Mobile Telephony


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Market Share – Fixed

Total fixed access lines grew over the quarter to 295,214, representing 1.80% of the total market share. Vodafone deepened its dominant fixed line market share to 98.85%. Even though Zain increased its subscription to 4,145 fixed lines, its market share declined to 1.15%.

The chart below shows the market share by fixed line operator. Figure 7: Market Share – Fixed Telephone Operators

Penetration The penetration rate at the end of the first quarter of 2010 for mobile telephony was 70.8 %, while that of Fixed Telephony was 1.3% giving a total penetration rate of 72.1%.


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Engineering

The Engineering Division of the National Communications Authority (NCA) is responsible for the management of the radio frequency spectrum, a vital natural resource essentially used for the delivery of communications and technology-based services in the country. This vital resource holds great potential for nations as rapid advancements in technology continue to create variety of new spectrum applications which spur greater interest in and demand for this finite resource. The frequency spectrum therefore needs to be managed and utilized as effectively and efficiently as possible to serve national interest and this requires careful management to ensure that the resource is both available and usable for maximum national benefit. During the first quarter of the year 2010, the Division was able to achieve nearly ninety percent of its target in managing the finite resource. As part of its duties, the Division constantly monitored the frequency spectrum to enable the Authority assess the performance of licensed operators and to weed out illegal users of the radio spectrum. The following are highlights of activities carried out:

Frequency Issues

The department carried out frequency assignments for the various services. Some of the services were assigned for Studio-to-Transmitter Link (STL) for FM, point-to-multipoint microwave communications links and for Land Mobile communications. Selected personnel of the Engineering Department participated in meeting of the Working Party 1A (WP 1A) and Working Party 1B (WP 1B) of ITU-R Study Group 1 (STG1) which took place in Geneva, Switzerland from February 1-10, 2010.


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The meeting discussed issues covering Power Line Telecommunications Systems, Short Range Devices (SRDs), economic aspects of spectrum management, and certain World Radio communications Conference (WRC) agenda Items. The Department also participated in a meeting held between the Ministry of Communications (MOC) and the Authority on the usage of 30MHz Bandwidth in the 2500-2690MHz Spectrum. The Department raised invoices for various Communication Services Providers some private companies. The table below shows details of the issues dealt with.

No. Company Type of service requested

Remarks

1. Despite Company Limited

Studio-to-transmitter Link (Frequency changed)

The Department successfully assigned VHF frequency 375.700MHz ±100KHz for their operations

2. GS Telecom Ghana Ltd.

Point-to-Multipoint Microwave Frequency in the 10GHz

The department successfully assigned channel 1 of the 10GHz Frequency Band for their operations in the Greater Accra and Western Regions of Ghana

3. E.I.B. Network (Gh) Limited (Radio Hope)

Reinstatement of Frequency Authorisation

The Department Facilitated the reinstatement of their frequency Authorisation and operate on the assigned frequency 106.9MHz

4. Internet Ghana

Point-to-Multipoint Microwave Frequency in the 10GHz

The Company was granted sixty (60) day provisional Authorisation to settle charges pertaining to the use of the frequency

5. K &N Investments Ltd

Change of Frequency The Company’s frequency was changed from 107.7MHz to 107.9MHz


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Licensing of FM Radio Broadcasting Services

The following activities were undertaken by the Media Services Unit during the first quarter of 2010:

a) Assessment of applications for Commercial FM Broadcasting operations for Phase II continued in this quarter. This phase included the Central Volta Western and Eastern Regions of Ghana. At the end of the process, forty six (46) applications for Commercial FM Broadcasting Stations, five (5) Community FM Broadcasting Stations and one (1) Campus FM Radio Broadcasting Stations were recommended to the Board for approval.

b) Inspections were carried out at the under-listed FM Radio

Broadcasting Stations: Table 7: List of FM Radio Broadcasting Stations Inspected

Item No.

Name of Company

Frequency Physical Address

Date of Inspection

1 Holy FM 98.5MHz Aflao 19/01/2010

2 Theovision Int. 88.1MHz Assin Fosu 20/01/2010

3 Theovision Int. 93.5MHz Asamankesse 20/01/2010

4 Best FM 90.5MHz Bogoso 10/02/2010

5 Y FM 107.7MHz Accra Mall 22/02/2010

c) The Division continued the renewal process for expired FM Radio

Authorisations. Twenty-one (21) renewal applications were received, processed and recommended to the Board for approval.

Licenses Issued for TV Broadcasting Services

In view of the on-going National Analogue to Digital TV Broadcasting Migration process,, no new TV Authorizations were issued.


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Digital Migration Strategy

The National Digital Broadcasting Migration Technical Committee started work in January 2010. The committee set up four (4) Sub-Committees to handle the major tasks of the plenary. The Sub-Committees were as follows:

Public Relations and Consumer Issues Sub-Committee

Policy and Regulations Sub-Committee

Economic Sub-Committee

Technical Sub-Committee

The various Sub-Committees have been meeting regularly and reporting to the plenary on their individual terms of reference.

Spectrum Monitoring

The Division continued its monitoring activities to identify and rectify interference problems encountered by Frequency Authorisation Holders throughout the country. During its monitoring exercise, the Division was able to assess the performance of licensed operators and to weed out illegal users of the radio spectrum. The Division installed the Spectrum Monitoring Remote Station at Nkwantakese as part of the Phase II of the TCI Project. The Automated Spectrum Management System (ASMS) was successfully integrated into the operations of the organization, and the data migration of all NCA records into the system is near completion. The Authority successfully migrated BNC from the 800 MHz band to the 450 MHz band. A joint team of the Authority and BNC undertook a nationwide exercise to clear all illegal spectrum occupants in their 450 MHz band. The Authority detected that DASS Security limited was operating an unauthorised Private Radio Network (PRE) at Aburi. Their equipment was confiscated and the station has been shut down.


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The Division resolved the interference problem between Focus FM and Radio Xtasy in Kumasi.

Technical Studies

As part of Phase II of the TCI project, the Division facilitated a three-week on-the-job training for a number of staff from various Divisions of NCA on the following:

Agilent Equipment

Automated Spectrum Management System Training ATDI Training


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Financial Performance

Revenue

The actual revenue for the quarter amounted to GH¢11.04 million,

approximately 9.5% above the projected revenue of GH¢10.08 million for

the period.

Major contributors to revenue included regulatory fees, licensing

forMicrowave Link Frequencies and Investment Interest.

Expenditure

The actual expenditure for the period was GH¢2.02 million as against a

budget of GH¢4.78 million, representing 137% positive variance.

Comparison between Revenue and Expenditure

During the quarter, the revenue exceeded the expenditure by GH¢9.02

million.

Cash & Bank Balances

Total cash and bank balances as at 31 March, 2010 was GH¢14.4 million.

Total short-term investments earmarked for projects (regional offices,

equipment acquisition and upgrades, other capital acquisitions, etc) at the

end of the quarter stood at GH¢76.3 million.


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Debtors

Debtors in the first quarter of 2010 amounted to GH¢16.2 million

representing the following:

ICT Projects - GH¢ 2.7million

Telecom Operation - GH¢6.1million

Staff Debtors - GH¢ 0.3million

Ministry of Finance (MOF) - GH¢4.5million; and

Sundry Debtors - GH¢2.6million

Prepayments and Deposits

Prepayments and deposits made during the quarter under review amounted to

GH¢2.66million.


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Information and Communications Technology

ICT Master Plan

The Authority continues to deploy state-of-the-art information and communication technologies in accordance and compliance with the strategies and guiding principles outlined in the ICT Master Plan. This ensures that all ICT implementations are strategically aligned with the corporate or business strategy. Systems Development

The Authority continues to deploy mission-critical systems and applications to facilitate service delivery to its valued clients and the general public. Business Continuity/ Disaster Recovery Plan

The Authority has deployed a secondary data center located at its Ringway Estates branch office (NCA Annex) to host mission-critical servers that support its Network Operating Center (NOC). The secondary data center also serves as a backup or redundancy to the primary data center at the NCA Head Office to ensure business continuity in the event of a disaster. Corporate Mailing System

The Authority has deployed a Mailing system for use by all NCA staff to enhance internal communication among staff and official communication with external partners. Website

The Authority is currently upgrading its website to increase accessibility of information by the general public and external partners as well as enable online/electronic filing of application.


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Internet

For the quarter under review, the Authority extended its fast, secure and reliable high speed internet access to its branch office at Ringway Estates for effective use of web service applications for monitoring and to enhance research operations. Information Security Policy

The Authority has a comprehensive corporate Information Security Policy and strategy to address emerging cyber threats and changes in ICT environment to ensure continuing suitability, adequacy and effectiveness. Communication

During the first quarter 2010, the Authority designed and deployed secure Local Area Network (LAN) at its Ring-way Estates branch office (NCA Annex). The Authority is currently in the process of the design and implementation of a Wide Area Network (WAN) connectivity to interconnect its branch offices across the country and all mobile operators network for effective monitoring and data connectivity.


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Corporate Governance, Compliance, Consumer Affairs and Legal Board of Directors

The Membership of the Board has not changed since its inauguration on 27th August, 2009. Table 11: Board of Directors

No. Name Membership

1. Mr. Kofi Totobi Quakyi Chairman

2. Mr. Bernard Aidoo Forson, Jr. Member/Director General

3. Mr. William Tevie Member

4. Mrs. Rita Sraha Member

5. Mr. Pasmor Kuranchie Member

6. Mr. Solomon Quandzie Member

7. Mr. Issah Yahaya Member

8. Mr. George Sarpong Member

9. Col. Hyacinth Nii Armah Tagoe

Member

Appointment and Composition of the Board

Per Section 6 (1) of the National Communications Authority Act, 2008, Act 769, the governing Board of the Authority shall consist of the following:

a) Chairperson;

b) The Director-General appointed under Section 16 of the NCA Act 769;

c) One representative of the i) National Security Council, ii) National Media Commission, iii) Ministry of Communications, not below the rank of a director.

d) One person with experience and expertise in communications; and


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e) Three other persons at least one of whom is a woman and each of whom has knowledge or expertise in electrical engineering, law, business or public administration.

Section 6 (3) of Act 769 provides that the members of the Board shall be appointed by the President in accordance with Article 70 of the Constitution. Board Meetings

The Board held two (2) meetings within the first quarter. The number and dates for the said meetings are as follows:

88th Board Meeting - Friday, 12th February, 2010

89th Board Meeting - Monday, 15th March, 2010

Board Committee Meetings and Issues Recommended to the Board During the quarter under consideration, the Sub-Committees of the Board met as and when issues were referred to them by the Board for consideration:

Management Sub-Committee – Held meetings on January 29, February 10 and March 18, 2010 to consider administrative issues, prevalent among which were issues related to capacity building and human resource development.

Finance and Audit Sub-Committee – Held a meeting on February 11, 2010, to review the 2010 budget and on-going capital projects.

The Operations Sub-Committee also held meetings on February 11, 2010 and March 9, 2010 to consider applications for communication services, particularly, issues pertaining to spectrum allocation and assignments.

The Sub-Committee also reviewed Guidelines for the siting of communication towers and proposals for the monitoring of international traffic.

Research Sub-Committee – Held meetings to consider surveys done on mobile phone subscriptions and quality of service.


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Some of the issues recommended by the Sub-Committees included the under-listed:

Enhancing the human resource base of the Authority.

The use of LTE technology for the Broadband Wireless Access (BWA) Licensing Scheme instead of the WIMAX technology.

Conflict of Interest Code

Section 10 (1) of NCA Act 769 provides that a member of the Board who has an interest in a matter for consideration by the Board shall disclose in writing the nature of that interest and is disqualified from participating in the deliberations of the Board in respect of that matter. No Member of the Board declared interest in any matter considered by the Board during the quarter. Board Members Fees

Per Section 13 of the National Communications Act, 2008, Act 769, Members of the Board and members of a Sub-Committee of the Board shall be paid allowances approved by the Minister of Communications in consultation with the Minister responsible for Finance. Major Decisions Made or Resolutions Passed by the Board

The Board resolved to stick to the WIMAX technology for the Broadband Wireless Access (BWA) Licensing Scheme instead of the recommended LTE technology. Board Secretary The Head of the Legal Division doubled as the Secretary to the Board. Compliance with Terms of Licence by Operators Generally, the operators complied with the terms of their respective licenses.


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Complaints Received – Type, Resolved and Outstanding The Authority mainly received complaints from subscribers, land and/or property owners against telecommunication network operators who had erected masts in their areas of residence. The Authority has resolved most of the said complaints. Legal Disputes There has been no legal suit between the Authority and any Company in the quarter under discussion.


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Human Resources Development Organization Structure

No changes were made to the Organisational Structure of the Authority during the period under review.

Human Resources Review Employee Statistics In all, the Authority has total staff strength of 96, represented as follows:- Regular Staff

Category Male Female Total

Management 9 2 11

Senior Staff 40 14 54

Junior Staff 11 5 16

Secondment 2 0 2

Total 60 21 83

Gender Ratio 74% 26% 100%

Temporary Staff

Category Male Female Total

Contract 1 1 2

National Service 1 3 4

Part-time 1 5 6

Internship 0 1 1

Total 3 10 13

Gender Ratio 23.1% 76.9% 100%


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Recruitment

Nine (9) contract employees had their appointments regularized, whilst one (1) new employee was recruited. No of employees

Division Status Reason

2 Consumer & Corporate Affairs

Permanent

Nucleus staff of a new Division

3 Eng Permanent Regularise Employment

1 Administration Permanent- To augment staff in the Division

2 Information Technology

Permanent - To augment staff in the Division

2 Finance Permanent - To augment staff in the Division

Separation

One (1) employee from the Regulatory Administration Division resigned from the Authority on 31st March 2010. Health & Safety Programs

The Authority continues to reinforce its preventive Health and Safety Policy. Regular inspections of installations were conducted to identify potential hazards for rectification. General safety and fire tips are periodically sent to Staff.

Medical Policy

The initial benefits derived from the registration staff and their dependants with the National Health Insurance Scheme (NHIS) are being hampered by the failure of our designated Clinics to accept NHIS card holders since the Scheme is indebted to them. Staff however continues to benefit from the Authority’s internal medical facilities as provided for in the Conditions of Service.


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Training and Capacity Building

A comprehensive Training Needs Assessment was carried out in the last quarter of 2009 awaiting Management’s approval to allow for a coordinated training effort to be rolled out in furtherance of the Authority’s Strategic Plan. Employee Provident Fund

Employees were provided with quarterly reports of their financial position with the Fund. Efforts will be made in due course to streamline the operations of the Scheme in accordance with the provisions of the National Pensions Act, 776, 2008 and Regulations that may be passed from time to time. Performance Management System

Management implemented the outcome of December 2009 performance appraisal. Deserving employees were either promoted or given salary increments. Review of Staff Conditions of Service

The revised Conditions of Service for both Senior and Junior Staff are still awaiting Management’s consideration and approval for implementation. Employees’ Code of Conduct

The Employee’s Code of Conduct is still under final review. It is hoped that the document will be approved for implementation in the first quarter of 2010


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Social Responsibility Program

The Authority did not introduce any new program in the period under review; however, it continued to support the training of competent graduates who had been offered internship programs spanning three (3) months to five (5) months. Welfare The committee established to collate views on a Staff Housing Scheme circulated draft copies of Rules and Regulations of the Scheme to Management and staff for their review.

Implementation of the Disability Act

The Human Resource and Administration Division reminded the Contractors working on the Office Annex to ensure that facilities in the building could be easily accessed by the physically challenged.


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Other Information Special Projects

Guidelines for the Installation and Management of Communication Towers

The Special Projects Division spearheaded the discussion, collection and collation of data for the drafting of a mutually acceptable “Guidelines for the Permitting, Installation and Management of Communications Towers” within the country. All the stakeholders (Ghana Civil Aviation Authority, Ghana Atomic Commission, Environmental Protection Agency, Town and Country Planning Department, MMDAS (Metropolitan, Municipal and District Assemblies), Ministry of Communications, Ministry of Local Government, Ministry of Environment Science and Technology and all Telephone Network Operators) had several meetings and retreats to arrive at the final document. The draft document is ready and expected to be discussed at a public forum, before its adoption and implementation.

SIM Card/Chip Registration

During the period under review the Division also developed the modalities and plans for the National Registration of all Telephone SIM Cards/Chips. The Division organized a Press Soiree on the SIM Card/Chip Registration Exercise to educate the press on the rationale for the exercise and the modalities for the registration. Again the Parliamentary Sub-Committee on Communications was also briefed on this exercise as a way of informing them on the activities of the NCA. The Division also co-ordinated the individual Telcos’ plans for the registration of their various subscribers. Currently all Operators have started registration on voluntary basis. However, the mandatory registration of all new subscribers will begin from 1st July, 2010. There will be extensive public education before the commencement of the mandatory registration.


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Monitoring and Enforcement Activities

The Division was also involved in low level Monitoring and Enforcement activities concerning the under-listed issues brought to the attention of the NCA.

Pirating of Multichoice signals by some of their customers

Illegal installation of repeater stations at Aburi in the Eastern Region.

Inspections of Communications Towers, that resident have complained about.

Illegal Termination of International Traffic through SIM Box Operations. This case involving TiGo is currently in court.

International Events Held

There was no International Event held in the quarter under consideration.

Investment in the Communications Market

The approximate investments in the communication sector by way of equipment imported into the country by Operators and Service Providers for the period under review was estimated at $280 million.

Way Forward

In the subsequent months, the Authority will undertake the following

activities among others:

Spearhead a National Committee to develop Ghana’s position on the World Radio Conference for 2012 (WRC-12) Agenda Items which will be consolidated with other African Countries as the Africa Region’s position.

The National Digital Broadcasting Migration Technical Committee

will continue with the migration process as scheduled.


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Follow through the necessary licensing procedure set out in the planned timetable for the auction of the BWA Licences.

Implement Phase III of the Automated Spectrum Monitoring System (ASMS) i.e. remote sites at Tamale and Takoradi. It shall conduct compliance Monitoring exercise in the Northern Sector of Ghana.

Continue with the renewal process for all expired Authorisations, e.g. ISPs, FM Radio and TV Broadcasting Services, etc. .

Documents

2nd Quarter Report - Digital GhanaEmail Address [email protected], [email protected] Auditors Hydefynn & Osei Chartered Accountants 2nd Bannerman Road, High Street, Accra Opposite CEPS