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

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.