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Internet costs soar on currency volatility, energy prices and market barriers

 

Internet users are feeling the pinch as currency depreciation, surging energy costs and limited market competition push data prices higher.

This is forcing some consumers to spend more on connectivity than on essentials like food.

Consumer advocacy group CUTS International warns that affordability has become a major concern, with structural inefficiencies in the telecom sector exacerbating the problem.

In response, the government has announced plans to form a multi-stakeholder team to draft a roadmap aimed at reducing data costs.

However, the challenge remains in balancing consumer relief with sustainable business operations for telecom firms.

For the past four or five years, there has been growing frustration over high data costs, which are squeezing household budgets and affecting businesses,” said Appiah Kusi Adomako, West Africa Director of CUTS International, in an interview with Citi Business News.

“If we fail to act, we risk stifling digital inclusion and economic growth.”

Adomako pointed to high power costs as a major driver of rising data prices. He suggested that incentivising telecom operators to transition to renewable energy could help alleviate cost pressures.

One effective measure would be to remove VAT, GETFund, and National Insurance levies on solar equipment used for telecom cell sites,” he proposed.

Ghana’s digital economy is poised for expansion but the push for more affordable internet could have far-reaching implications for businesses and consumers alike.

While industry stakeholders acknowledge the need for intervention, concerns linger over potential market distortions.

Policymakers will need to strike a delicate balance to ensure competitive pricing without undermining investment in network infrastructure.

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