Gov’t signs US$13 million contract with K-Net

The Ministry of Communications on Tuesday signed a Memorandum of Understanding with K-Net Limited for the roll out of the country’s Digital Terrestrial Television (DTT) network project.

The contract worth 13 million dollars is for the supply and installation of a Digital Video Broadcasting Second Generation (DVB-T2) Terrestrial network.

The Contract demands the completion of the DTT network in 12 months, and that, the project is structured to be executed in nine months and a further three months for resolving all teething challenges.

Dr Edward Omane-Boamah, the Minister of Communications, who signed the contract, said following the evaluation of tenders received, K-Net Limited was recommended for the contract to deliver the DTT network project.

He said the engagement of K-Net Limited; a fully owned Ghanaian entity amplifies government’s resolve to develop local content.

“Upon completion of the network roll out, the analogue and the digital transmissions will run concurrently for a period of one year for the uptake of the digital system before complete switch-off of the analogue transmitters” he added.

Dr Omane-Boamah said the payment for the contract sum of 82.3 million dollars will be made from the proceeds of the auction of the spectrum to be released following migration of broadcasters from analogue to digital referred to as “Digital Dividend”.

He explained that the auction of the digital dividend and the use of part of the proceeds in financing the DTT network roll out will eliminate the need for any loans, whether concessionary or commercial, and provided certainty on the implementation programme to the comfort of all stakeholders.

The Minister said the digital migration would offer television viewers better picture quality, clear sound, more channels and more choices and interactivity.

He said the sale of spectrum for broadband applications will expand the range of value added services, encourage competition and lead to competitive pricing of products and services and create job opportunities for the distribution, sale, installation and maintenance of set top boxes.

Dr Omane-Boamah said the Ministry has prepared a comprehensive public education and awareness materials for the migration from analogue to digital television.

He commended the support and commitment demonstrated by all stakeholders especially the Ghana Independent Broadcasters Association and the National Digital Broadcasting Migration Committee for actively participating in all deliberations.

Mr Ken Asare, the Chief Executive Officer of K-Net Limited thanked government for giving them the opportunity, stressing that, it was a right decision to allow a Ghanaian business entity to execute the business since it falls within their competences.

He assured the government of their preparedness and willingness to execute the project within time in an efficient and effective manner.