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Ghana Telecommunications Report Q4 2009

Product Type: Market Research Report
Published by: Business Monitor International
Published: October 2009
Product Code: R302-8316
Description
BMI maintains its forecasts relating to Ghana’s mobile market, and we fully expect to see the country’smobile penetration reach 60% before the end of 2009. This will mean that it ends the year with close to15mn mobile subscribers, which indicates a 27% expansion of the subscriber base during 2009. This isdown from 57% in 2008, but this is very much a natural evolution thanks to a gradually maturing mobilemarket.

More worrying are Ghana’s ARPUs, which took something of a dive in Q109. This is a pattern that hasbeen seen in many markets across Africa, exemplified by pan-African operator MTN’s results. MTN’sQ109 abridged results release shows that in every single one of the markets it operates in, ARPUs havegone down, some of them really dramatically. A certain amount of this decrease is down to devaluedcurrencies against the dollar, and the rest is due to decreased spending on the home market. In Ghana’scase, MTN’s blended ARPU fell from US$12 in Q408 to US$8 in Q108. This 31% drop in US dollarterms, however, was backed up by a 15% drop in local currency terms, so there is evidence that mobilespending did noticeably drop as people started to feel the effects of economic concerns. BMI is hopefulthat, in the next couple of quarters, operators, including MTN, will get more of a handle on ARPUs.

The operators are hoping that 2009 will see 3G take off in Ghana. At the very end of 2008, Zain launchedas the fifth operator on the market. It launched as a 2G and 3G operator, making it the first to offer 3Gservices in the country. It only managed this by a whisker, however, as market leader MTN launched itsown 3G network soon afterwards. Coverage of the new services remains fairly minimal, but the operatorsare working at expanding it, and Vodafone has contracted Huawei to upgrade its own network. 3G couldhelp boost uptake of internet services in Ghana and will hopefully give the operators a fresh revenuestream, which may be helpful as the increasing levels of competition put some pressure on their ARPUs.

April 2008 was the month that Vodafone chose to rebrand One Touch and Ghana Telecom as Vodafone.

BMI did wonder if it would wait until its own 3G launch in order to have a big occasion as a launch padfor the new brand. The decision to push ahead with an earlier rebranding suggests that Vodafone feels ithas overcome a lot of the negative press that surrounded its purchase of Ghana Telecom, although thereare still some inquiries going on into the details of the deal.

Ghana’s fixed-line market is looking fairly healthy, as African fixed-line markets go. Penetration is closeto 2%, and Vodafone is apparently investing in extending the Ghana Telecom network. At the same time,the National Communications Authority (NCA) is in the process of issuing national and zonal fixedwirelesslicences, in an effort to promote competition in the fixed-line sector and reinvigorate the market.

In December 2008 the Main One cable company received landing rights to connect its undersea cable toincreasing the bandwidth of hungry Ghana. Internet use has been quite slow to take off, and cheaperinternational bandwidth will certainly be beneficial. However, it may have a more dramatic impact onother areas of the telecoms industry, since all carriers have to pay, one way or another, for internationalconnectivity, and reductions in costs could lead to lower prices, which are often lamented as being toohigh.
Table of Contents
Executive Summary
SWOT Analysis
Ghana Mobile SWOT
Ghana Fixed-Line And Broadband SWOT
Ghana Political SWOT
Ghana Economic Industry SWOT
Ghana Business Environment SWOT
Business Environment
Africa
Ghana
Table: Business Environment Rankings - Africa
Industry Forecast Scenario
Mobile
Table: Telecoms Sector - Mobile - Historical Data & Forecasts
Fixed Line
Table: Telecoms Sector - Fixed Line - Historical Data & Forecasts
Internet
Table: Telecoms Sector - Internet - Historical Data & Forecasts
Market Data Analysis
Mobile
Table: Ghana Mobile Market Q109
Table: Ghana Mobile Market Net Additions Q109
3G
Mobile Content
Regional Outlook
Country Outlook
VAS Developments Table
Mobile Operator Data
Table: Total Market
Table: MTN
Table: Tigo
Vodafone (formerly One Touch)
Fixed Line
Broadband
Wireline Developments Table
Regulatory Environment & Industry Developments
Ghana: Regulatory Bodies And Their Responsibilities
Competition
Licensing
Industry Developments
Competitive Landscape
Key Players
Table: Key Players - Ghana Telecoms Sector
Company Monitor
Africa - A Key Region
Vendor Financing In Africa
Profiles
Ghana Telecom
MTN Ghana
Appendix
Regional Telecommunications Penetration Overview
Fixed Line
Table: Regional Fixed-Line Penetration Overview
Mobile
Table: Regional Mobile Penetration Overview
Internet Use
Table: Internet Use Penetration Overview
BMI Telecoms Industry Glossary
Table: Telecommunications Glossary Of Terms
BMI Methodology
Business Environment Ratings Methodology
Ratings Overview
Weighting
Weighting
Indicators
Indicators
BMI Forecast Modelling & Sourcing
How We Generate Our Industry Forecasts
Telecommunications Industry Forecast Table
Key Indicators
Business Environment Ratings
Sources
Ordering and More Information
Price and Delivery Options



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