Government Takes Bulk of Telco Revenue; Engineer Questions Data Price Reduction Plans

A Telecommunication Engineer, Marvin A. Osei, has questioned the feasibility of the government’s move to reduce internet data charges, citing the heavy tax burden placed on telecom companies. Speaking on the Teknokrat show on Focus FM with host Sika Audrey Dzifa, Mr. Osei revealed that close to 40% of telecom companies’ cost structure goes directly to the government in the form of taxes and levies.

“If you buy data worth GHS 100, about GHS 40 goes to the government. The telcos are left with just GHS 60 to operate and invest,” he stated, adding that these figures often go unnoticed by the general public.

He argued that while government’s call for cheaper data may sound appealing to consumers, the root issue lies in the tax regime. “If the government is serious about reducing the cost of data, the first step is to reduce the levies and taxes that inflate operational costs,” he advised.

Marvin also pointed out that operating a telecom company requires the acquisition of costly infrastructure — most notably, the spectrum license, which is government-regulated and expensive. This, in addition to other overheads, makes telecom operations capital-intensive.

“They don’t have much of an option. The government controls a huge part of the equation, yet turns around to push for price reductions.

It’s difficult to justify,” he remarked. His comments come in response to a recent communique from the government promising a reduction in internet data costs, a move that has sparked public debate on the pra