GHANA TELECOM CRASHES INTO THE RED WITH ¢120BN LOSS

Mergers, Acquisitions and Financial Results

Ghana Telecom has declared a loss of 120 billion cedis for the 2002 financial year as against a 210 billion cedi profit recorded in 2001. Information released by the management of the company says the loss is the result of a 36 per cent reduction in revenue from international traffic, an increase of 262 per cent in tariff payment to cellular phone operators and a 135 billion cedi increase in operating cost.

JOY FM’s analysis of the rather scanty information provided by the company suggests that the company recorded a total revenue of 920 billion cedis in 2002. Total expenditure for the year was however found to be over one trillion cedis.

Managing Director, Oystein Bjorge told JOY FM that the ¢36 billion reduction in international traffic is because of illegal termination of calls by some Internet Service Providers and other operators. According to him, Ghana Telecom and the National Communication Authority are collaborating to block the loopholes.

Oystein Bjorge also says GT will be making a strong case from an upward adjustment in tariffs. Ghana Telecom paid out far more to other operators than it received from them.

JoyOnline