Telco expert predicts collapse of Expresso

10:10 - 15 March 2017

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According to a telecom analyst Fouad Chalabi the company can direct its investment into providing data while it looks for investors to upgrade its technology from CDMA to GSM.

A telecom analyst Fouad Chalabi has said that telecom operators Expresso must take measures to own a section of a market or face extinction by market forces.

According to him, the company can direct its investment into providing data while it looks for investors to upgrade its technology from CDMA to GSM.

In 2016, Sudan Telecom (Sudatel), owners of Expresso Ghana announced that 18 per cent of the company has been sold and duly transferred to an unidentified buyer for $5million.

Speaking to an Accra-based Citi FM Mr Chalabi said the competition in the telecom industry is far advanced for Expresso to survive without investment.

“With the competition and where they are and what is happening in the market, you have more than one operation using 4G. The majority of people in Ghana now prefer GSM so it will be hard for Expresso to really do anything unless they want to have a system by which they provide only data and incorporate other things so they establish their niche market.”

He mentioned that technology has improved and it will continue improving. He said this changes the preference of consumers.

Mr Chalabi suggested that the company can specialise in a market area of the industry to attract investors.

He added that the company can channel more funds into the data area. This he said may help them grow significantly over the years.