Vodafone has concluded its anticipated departure from the Ghanaian market by officially confirming the sale of its majority ownership in its local unit to Telecel Group. The telecommunications company has divested its 70 percent stake in Vodafone Ghana to Telecel and this is due to;
Gradual Decline In Market ShareThe Government of Ghana retained 30% of Vodafone Ghana Telecom with Vodafone owning 70%. However, over time, Vodafone has been losing market share to its bigger competitor MTN . In 2022, Vodafone had only 18% of the voice subscription market share.
Vodafone Ghana, a prominent telecommunications company in the nation with approximately 20% market share, provides various services such as voice, data, mobile money, and enterprise solutions.
Nevertheless, the company has encountered numerous challenges in recent years, leading to a decline in its reputation and customer contentment.
What factors contributed to these setbacks?
Vodafone's Background
In the latter part of 2007, the Ghanaian government established the National Communications Backbone Company (NCBC), a semi-autonomous entity tasked with overseeing the optic fibre transmission network. Initially, this network was managed and controlled by Voltacom, a wholly-owned subsidiary of the Volta River Authority (VRA), providing backbone services in Ghana.
Huawei Technologies S.A. Gh. Ltd, a Chinese multinational telecommunications company, was entrusted with the responsibility of upgrading and expanding the existing VRA OPGW fibre network. The objective was to connect it to all regional capitals and 36 major towns and cities across Ghana through optical fibre, aiming to enhance e-government, rural telephony, and internet services.
The National Communication Backbone Company was established with the goal of providing broadband capacity to support the deployment and application of Information and Communication Technology (ICT) nationwide. This initiative was designed to contribute to Ghana's economic and social development by improving governance, expanding educational opportunities, fostering manpower development, enhancing healthcare delivery, promoting general commerce, modernizing agriculture, and facilitating environmental monitoring and business development.
The completion of the first phase of the National Fibre Optic Backbone Network occurred in December 2007. Subsequently, 100% of NCBC was transferred to Ghana Telecom in August 2008, preceding the acquisition by Vodafone.
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Source: cometodaddy.xyz
