April 18 2000
GHANA
A in-depth profile presented by Michael Knipe, The Times Special Reports Foreign Editor

 


Communications

Well Connected

Ghana's telecoms infrastructure is growing fast,
bringing phones and the Internet to rural districts


Well connectedDuring the past three years the number of telephone lines in Ghana has trebled to 200,000. Demand outstrips supply and the goal is to have 500,000 in two years' time.

In the same period the number of Internet users has risen from around 5,000 to 50,000. Ghana now claims the second fastest growing Internet penetration on the continent, after South Africa. Again, demand exceeds supply.

Broadcasting has also been deregulated and there are now more than 20 private FM stations around the country. Two private television services have also started transmissions and another three are planned.

But there are problems to be overcome with telecommunications. "We cannot keep up with the growth," admits John Mahama, the Minister of Communications. "Ghana Telecom is currently engaged in an expansion programme that was supposed to be finished last year but it has been delayed until maybe the end of this year when we hope to quash the problems of congestion."

Ghana led the way in telecommunications liberalisation and deregulation in Africa when it privatised Ghana Telecom in 1996. A 30 per cent share of the former monopoly was sold to a consortium of strategic investors - led by Telekom Malaysia.

In 1997, Western Telesystems Ghana (Westel) paid US$10.1 million for a licence to become the second national operator. Westel (56 per cent owned by US company Western Wireless International and 34 per cent by Ghana National Petroleum Corporation) plans to provide a full range of domestic and international telecommunications services.

The national communications authority set up to regulate the sector now oversees the operations of two national operators, five cellular mobile operators, three paging companies, seven data service providers and three Internet service providers, with another 17 licensed to operate. But the effort to expand the quantity and improve the quality of telephone services has been hindered by under investment. Internet growth has also been held back by poor telecommunications services which mean it is expensive and slow to download. Future prospects look good, however.

"Voltacom, a subsidiary of VRA, is stringing the entire hydropower network with optical-fibre cable," says Mr Mahama. "As this network serves all 110 districts of the country, it means we will have a nationwide backbone for the Internet."

The aim is to create a West African network. Ghana's electrical systems already connect with Togo and the Ivory Coast, and connection with Burkina Faso is imminent. "When these countries follow Voltacom's lead, we will have a sub-region fibre network that will provide good interconnectivity between the countries," says Mr Mahama.

"Our goal is to give access to a phone to every community of more than 500 people."

A consortium led by Canadian company SRThas carried out a feasibility study that shows it will be able to roll out about 15,000 lines in the rural areas during a five-year period.

As far as satellite phones are concerned, Ghana still has only limited roaming access, as cellular operators do not have direct international catering and have to go through one of the fixed-network operators, either Ghana Telecom or Westel. Plans to link cellular access with neighbouring countries are still at the draft stage.

There is certainly a need for regional integration in West Africa, says Mr Mahama, because Ghana is not big enough by itself to attract the amount of investment needed. "But together we form quite a big market that is internationally appealing."

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