High-speed internet set to take off in Ghana

Tuesday, 23 August 2011 12:02  |  James Barton

With a high penetration rate, mobile subscriber numbers in Ghana are set to remain fairly constant but 3G is on the rise, according to new data from BMI.

At the end of December 2010, there were 17.494mn mobile subscribers in Ghana, according to figures published by the operators and the NCA. This reflected annual growth of 14% for 2010 and meant Ghana had a penetration rate of more than70% at the end of that year. In Q410, Ghana's mobile market performed well, with a net increase of more than 1.33mn customers. The increased growth was largely a product of intense price competition among major network operators. The strong Q410 growth completely reversed the earlier customer losses recorded in Q210 and Q310. These had been due to the introduction of compulsory SIM registration in June 2010.

In addition to ongoing price competition in 2011, the country’s sixth operator Glo Mobile Ghana will likely launch before the end of the year. Mobile customer growth may be tempered by strict implementation of SIM registration and disconnection of unregistered SIMs. The regulator has set 30 June 2011 as a deadline for SIM registration.

Although mobile subscriber forecasts this quarter are not projected to change signficantly, 3G subscriber forecasts are likely to rise due to a larger market than previously estimated. Reflecting on recent figures published by mobile market leader MTN, Ghana had an estimated 346,000 3G subscriptions at the end of 2010, equivalent to 2% of the mobile market. By 2015, there will be more than 3mn 3G subscribers in Ghana, reflecting almost 13% of the total mobile subscriber base. 3G services are likely to play an increasingly important role in the competitive landscape as operators aim to diversify revenues away from basic voice and messaging services.

Key developments in Ghana's telecoms sector include news that mobile number portability (MNP) will be implemented from 1 July 2011. Mobile market leader MTN responded to the imminent introduction of MNP and said it sees the new development as an opportunity to win new customers. At the same time however, the operator has noted that many Ghanaians already own dual and multi SIM cards and have therefore been benefitting from the services of different networks for some time. According to MTN, this means that customer migration following the introduction of MNP may not be that significant.

Another development with long-term implications for Ghana's telecoms market was the April 2011 announcement that the high capacity submarine fibre-optic cable Glo 1 had finally gone live in Ghana's capital Accra. The 9,800km long subsea cable network, which connects the West African nation to Europe, is the result of a joint venture between Nigerian-based Globacom and Alcatel-Lucent. The new cable system aims to deliver affordable, high speed internet connectivity to local businesses and residential customers.

The inauguration of new fibre-optic cable systems has particular implications for the development of broadband internet services in Ghana. New forecasts for Ghana's internet users and broadband subscribers reflect the impact which mobile broadband services are having on the sector. Mobile broadband services connect to the internet wirelessly via a high-speed (3G/HSPA) network. A wide range of devices are used including 3G-enabled mobile phones, netbooks, smartphones and USB sticks. There were an estimated 1.66mn internet users at the end of 2010, equivalent to a penetration rate of 6.7%. Meanwhile, Ghana had around 107,000 broadband subscribers at the end of 2010, equivalent to a penetration rate of 0.4%.

---

Add this page to your favorite Social Bookmarking websites