ArtistDirect News
Ghanas Caller Ring-Back Tones: A Missed Royalty Opportunity for Songwriters
In Ghana, a phone call can sound like a concert. Since the mid‑2000s, Caller Ring‑Back Tones (CRBTs) have replaced the generic “tring‑tring” with highlife, gospel, or Afrobeats, turning every incoming call into a miniature performance. MTN Ghana’s Callertunez service brought the format to the masses, letting subscribers attach a song to their caller tune for a monthly fee. The idea quickly became a cultural staple and, for the country’s music industry, a new revenue stream.
The CRBT business model is straightforward. Each commercial use of a track should trigger two royalty streams: a master royalty for the recording and a mechanical royalty for the composition. In practice, telecom operators keep roughly 70 % of the revenue, handing the remaining 30 % to aggregators. Artists and labels usually receive about 15 % of the gross, which drops to roughly 12 % after taxes and other deductions. The low share has long drawn criticism from musicians who feel it falls short of a fair return.
A more serious shortfall is the omission of mechanical royalties. Since CRBTs proliferated in 2012, Ghanaian telecoms have not paid any mechanical royalties to songwriters, composers, or publishers. GHAMRO, the organization that represents creators’ interests, identified the issue early and began lobbying for compliance. When negotiations stalled, GHAMRO filed a lawsuit.
On 10 March 2021, the Accra High Court, presided over by Justice Jennifer Abena Dadzie, ruled in favor of GHAMRO. The court ordered MTN, Vodafone (now Telecel Ghana), and AirtelTigo to pay the appropriate royalties and awarded GHAMRO GHS 60 000 to cover legal costs. The decision was intended to enforce the payment of both master and mechanical royalties.
Despite the ruling, payments remain inconsistent. Reports from 2024 indicate that telecom operators have not fully complied with the court’s order, and mechanical royalties continue to be withheld. The gap is stark because the same operators adhere to royalty obligations in other countries where they operate.
The exclusion of mechanical royalties has wider implications. Songwriters and composers—who craft the lyrics and melodies that make CRBTs popular—receive no compensation for their work. This structural exclusion discourages songwriting as a viable profession and weakens the foundation of Ghana’s music ecosystem.
Telecom companies often highlight their support for the creative industry through sponsorships and event partnerships. However, without fair royalty payments, these gestures do not address the core issue of revenue distribution. The continued failure to honor the court’s decision undermines confidence in the industry’s integrity.
The legal framework exists, the court has issued a clear judgment, and industry bodies have pressed the issue for years. What remains is enforcement. Regulators must ensure that the ruling is implemented, and telecom operators must recognize that long‑term success depends on transparent and equitable royalty practices.
In summary, CRBTs transformed ordinary phone calls into a platform for Ghanaian music, generating significant income for operators and exposure for artists. Yet the system’s failure to pay mechanical royalties to creators leaves a critical gap in the revenue chain. Until telecoms honor the court’s order and pay the owed royalties, the industry risks further erosion of trust and sustainability.
The debt is clear, the obligation is legal, and the time for delay has passed.
The CRBT business model is straightforward. Each commercial use of a track should trigger two royalty streams: a master royalty for the recording and a mechanical royalty for the composition. In practice, telecom operators keep roughly 70 % of the revenue, handing the remaining 30 % to aggregators. Artists and labels usually receive about 15 % of the gross, which drops to roughly 12 % after taxes and other deductions. The low share has long drawn criticism from musicians who feel it falls short of a fair return.
A more serious shortfall is the omission of mechanical royalties. Since CRBTs proliferated in 2012, Ghanaian telecoms have not paid any mechanical royalties to songwriters, composers, or publishers. GHAMRO, the organization that represents creators’ interests, identified the issue early and began lobbying for compliance. When negotiations stalled, GHAMRO filed a lawsuit.
On 10 March 2021, the Accra High Court, presided over by Justice Jennifer Abena Dadzie, ruled in favor of GHAMRO. The court ordered MTN, Vodafone (now Telecel Ghana), and AirtelTigo to pay the appropriate royalties and awarded GHAMRO GHS 60 000 to cover legal costs. The decision was intended to enforce the payment of both master and mechanical royalties.
Despite the ruling, payments remain inconsistent. Reports from 2024 indicate that telecom operators have not fully complied with the court’s order, and mechanical royalties continue to be withheld. The gap is stark because the same operators adhere to royalty obligations in other countries where they operate.
The exclusion of mechanical royalties has wider implications. Songwriters and composers—who craft the lyrics and melodies that make CRBTs popular—receive no compensation for their work. This structural exclusion discourages songwriting as a viable profession and weakens the foundation of Ghana’s music ecosystem.
Telecom companies often highlight their support for the creative industry through sponsorships and event partnerships. However, without fair royalty payments, these gestures do not address the core issue of revenue distribution. The continued failure to honor the court’s decision undermines confidence in the industry’s integrity.
The legal framework exists, the court has issued a clear judgment, and industry bodies have pressed the issue for years. What remains is enforcement. Regulators must ensure that the ruling is implemented, and telecom operators must recognize that long‑term success depends on transparent and equitable royalty practices.
In summary, CRBTs transformed ordinary phone calls into a platform for Ghanaian music, generating significant income for operators and exposure for artists. Yet the system’s failure to pay mechanical royalties to creators leaves a critical gap in the revenue chain. Until telecoms honor the court’s order and pay the owed royalties, the industry risks further erosion of trust and sustainability.
The debt is clear, the obligation is legal, and the time for delay has passed.