Studies reveal that sectoral performance is ascertained after economic reform in a country. But reforms are also introduced if a particular sector is not being able to perform well. Conditions prevailing in the telecommunication sector of Ghana facilitated the implementation of telecommunication reform in Ghana.
Ghana Post And Telecommunications Corporation or GP&T was found to be ineffective. The services offered by the GP&T was of poor quality as compared to its counterparts in the other adjoining African nations. Even though profits were recorded foreign exchange was lost and this led to the decline in the equity.
Local tariff was subsidized and was still dropping. Prior to the telecommunication reform in Ghana in the year 1992, the GP&T, which was state owned exercised its monopoly over all services related to this sector.
The telecommunication reform in Ghana commenced during the year 1992, with the government permitting cellular entry. The objectives of the telecommunication reform in Ghana was documented in Accelerated Development Program or ADP. The reform was worked out for the period between 1994 to 2000.
The telecommunication reform in Ghana, brought donors, consumers, services providers (telecommunication), financiers and policy makers on a single platform. Competition as well as privatization were other two reforms documented by the government in Ghana.
Accelerated Development program as part of the telecommunication reform in Ghana hoped to improve quality, accessibility and reliability of the various telecommunication services in Ghana. The government in Ghana also encouraged competition from SNO or second network operator.
It also looked forward towards the improvement as well as expansion of mobile related services in the country. Owing to the telecommunication reform in Ghana, restrictions imposed on the networks, which were privately owned were also removed.
Consequences of telecommunication reform in Ghana:
After the implementation of the reforms, the country had a mixed result. The scenario of the telecommunication sector in Ghana improved to a great extent. Ever since privatization has taken place, there has been an increase in the growth of fixed lines. The number of mobile lines far outnumbered the fixed lines in the country.
With regard to the tariff structure, regulation of tariff has taken place but still there are few anomalies in some areas. In the year 1996, the currency of Ghana faced devaluation. This in turn led to the reduction of real tariffs.
Last Updated on : 26th June 2013