Infrastructure Sharing Among Ghana’s Mobile Telecommunication Networks: Benefits and Challenges

Sylvester Hatsu

doi:10.11648/j.ajnc.20160502.14

Abstract

In Ghana network companies such as Vodafone, Mobile Telecommunication Network, Airtel, Tigo, Expresso and Globacom (GLO) are experiencing increasing subscribers for voice calls, internet and video services. Competition in the industry has been intensified making service providers searching for innovative strategies to survive the competition. Strategies adopted to survive the stiff competition include rebranding, infrastructure sharing and mergers and acquisitions. This study focuses on infrastructure sharing as a strategy to reducing cost for these telecommunication service providers in Ghana. Mobile telecommunication industry in developing countries has players a remarkable role in providing services to large portion of the population. Despite the achievement in reaching large numbers, extra efforts are needed to increase the mobile service penetration. In increasing the penetration, attention needs to be focused on the rural areas. High network infrastructure cost has been the major problem. As operators strive to recoup investment cost associated with building the expensive infrastructure, customers tends to suffer from high network charges/ prices. Infrastructure sharing presents itself as a means of lowering network deployment cost, especially in rural and marginalized areas. Sharing has an advantage to stimulate migration to new technologies and mobile broadband deployment. Arguably, another advantage is the stirring up of competition between mobile operators and service providers, when safeguards are used to prevent anti-competitive behavior.

Highlights

IntroductionThe current liberalization, privatization and globalization concept which Ghana embraced during the economic recession period of the 1980s has resulted in the complete removal of Government’s hands in active business and economic activities in the country
[2] Through mobile telecommunication, Africa has reached 400 million mobile subscribers, many of which resides in remote areas with no fixed telephone connectivity. [3] on a telecommunication industry growth survey, reports a growth of 9.3 percent, making the industry one of the fastest growing in the world
Respondents were purposively selected based on the judgment of the researcher to select five respondents from each of the six mobile telecommunication companies operating in Ghana

Summary

Introduction

The current liberalization, privatization and globalization concept which Ghana embraced during the economic recession period of the 1980s has resulted in the complete removal of Government’s hands in active business and economic activities in the country. It is assumed that through liberalization, economic and allocative efficiency will be achieved in the country which will result in total national development. This approach is to correct the balance of payment deficit and result in higher Gross Domestic Product (GDP), which is a necessary indicator for economic development of any country. The analysis has been sectioned to correspond to the substantive objectives/ research questions set for the study

Objectives

Methods

Findings

Conclusion