Telecommunications Reform in Ghana

40 Pages Posted: 7 Feb 2003

See all articles by Luke Haggarty

Luke Haggarty

affiliation not provided to SSRN

Mary M. Shirley

World Bank - Development Research Group (DECRG)

Scott Wallsten

Technology Policy Institute

Date Written: January 2003

Abstract

In 1996, Ghana privatized its incumbent telecommunications firm by selling 30 percent of Ghana Telecom (GT) to Telekom Malaysia (TM), licensed a second network operator (SNO), and allowed 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 SNO never really got off the ground, and the regulator remained weak and relatively ineffective. The sustainability of competition is unclear. The government ended TM's management of GT 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.

JEL Classification: L96, L5, N47

Suggested Citation

Haggarty, Luke and Shirley, Mary M. and Wallsten, Scott, Telecommunications Reform in Ghana (January 2003). Available at SSRN: https://ssrn.com/abstract=373960 or http://dx.doi.org/10.2139/ssrn.373960

Luke Haggarty

affiliation not provided to SSRN

Mary M. Shirley

World Bank - Development Research Group (DECRG) ( email )

1818 H Street, N.W.
Policy Research Department
Washington, DC 20433
United States
202-473-7483 (Phone)
202-522-1155 (Fax)

Scott Wallsten (Contact Author)

Technology Policy Institute ( email )

409 12th St., SW
Ste 700
Washington, DC 20024
United States
2027309441 (Phone)

HOME PAGE: http://www.wallsten.net

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