Ghana Telecommunications Report Q2 2016
BMI View: BusyInternet's migration to TD-LTE ensures its wireless broadband business can continue to operate in Ghana's mobile-centric telecoms market. However, high device costs and limited mobility will ensure that it does not disrupt the fast-growing 3G/4G mobile sector. BMI notes that demand for wireline and fixed wireless broadband services in Ghana - which includes the ageing WiMAX standard BusyInternet initially adopted - has limited mass-market appeal, primarily due to the lack of adequate fixed infrastructure, but also due to the high cost of devices such as mobile computers. By contrast, the 3G/4G user base is growing rapidly on the back of low prices and subsidised entry-level smartphones and tablets. Unsurprisingly, BusyInternet has elected to enter this more dynamic market, but we feel it will have a limited impact at best.
Latest Updates Latest Updates & Industry Developments Industry Developments
The Ghanaian mobile market grew by 10.7% year-on-year (y-o-y) in Q215 to reach 119.9% penetration. The prevalence of multiple SIM ownership supports our view of continued growth, but increases the risk of discounting of inactive SIMs over the coming years.
The mobile data market grew by 20.4% y-o-y to H115, driven by expanding network coverage, falling tariffs and increased availability of low-cost smartphones. MTN successfully bid on 800MHz spectrum, which will enable it to expand data networks into rural areas more quickly, while also putting further pressure on the underserved wireline broadband market.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook