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Telecommunication reform in Ghana

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  • Haggarty, Luke
  • Shirley, Mary M.
  • Wallsten, Scott
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    Abstract

    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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    Bibliographic Info

    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2983.

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    Date of creation: 31 Mar 2003
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    Handle: RePEc:wbk:wbrwps:2983

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    Related research

    Keywords: Economic Theory&Research; Public Sector Economics&Finance; Rural Communications; ICT Policy and Strategies; Environmental Economics&Policies;

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    Cited by:
    1. Iimi, Atsushi, 2007. "Price structure and network externalities in the telecommunications industry : evidence from Sub-Saharan Africa," Policy Research Working Paper Series 4200, The World Bank.
    2. Clarke, George R. G. & Gebreab, Frew A. & Mgombelo, Henry R., 2003. "Telecommunications reform in Malawi," Policy Research Working Paper Series 3036, The World Bank.

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