Ghana Telecommunications Report Q2 2013

BMI View: Ghana's mobile penetration exceeded 100% at the end of 2012 in line with BMI'sexpectations. We expect the sector to maintain strong growth over our forecast period to 2017, driven bymultiple SIM ownership and extension of network coverage to underserved areas, but caution that regularinactive SIM discounting will temper growth in the future. This will increase the downward pressure onfixed-line connections, which recorded slowing annual growth rates in the three years to December 2012.

In view of the foregoing, we retain our view that the internet sector will be the main growth driver in theoverall telecoms market owing to the rising demand for advanced data services and increasing investmentin much needed wireless and wireline broadband network infrastructure.

Key Data

The Ghanaian mobile market grew by 2.9% q-o-q in Q412 to bring total growth in 2012 to 21%.

Mobile ARPU contracted by 21.1% in 2012, mainly due to increase in competition, following the launchof commercial services by sixth licensee Glo Ghana.

The fixed-line market grew by 3.7% in Q412 to reverse losses in the previous quarter and drive overallpositive subscriptions growth in the fixed-line sector in 2012.