Telecommunication Reform in Ghana
In 1996 Ghana privatized its incumbent telecommunications firm by selling 30 percent of Ghana Telecom to Telekom Malaysia, licensing a second network operator, and allowing multiple mobile firms to enter the market. The reforms yielded mixed result...
Main Authors: | , , |
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Format: | Policy Research Working Paper |
Language: | English en_US |
Published: |
World Bank, Washington, DC
2014
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2003/03/2166849/telecommunication-reform-ghana http://hdl.handle.net/10986/18314 |
Summary: | In 1996 Ghana privatized its incumbent
telecommunications firm by selling 30 percent of Ghana
Telecom to Telekom Malaysia, licensing a second network
operator, and allowing multiple mobile firms to enter the
market. The reforms yielded mixed results. Landline
telephone penetration increased dramatically while the
number of mobile subscribers surpassed even this higher
level of fixed line subscribers. On the other hand, the
network did not reach the levels the government hoped, the
second network operator never really got off the ground, and
the regulator remained weak and relatively ineffective. The
sustainability of competition is unclear. The government
ended Telekom Malaysia's management of Ghana Telecom
and has invited Norway's Telenor as a strategic
partner. What this means in practice remains unclear, and
the process for selecting Telenor lacked any transparency.
Meanwhile, some of the mobile firms are in precarious
financial positions. Competition is still relatively strong,
but its sustainability will depend on the government's
future commitment to ensuring it. |
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