The Peculiarities of Vodafone in Ghanaian Mobile Deal Presentation

• British government influenced the deal and Vodafone managed to get 70% stake in Ghana Telecom cheaper that The south African Telcom SA offered.
• Secret “Meetings between Government of Ghana and Vodafone Group between November 2007 and May 2oo8” held.
• Vodafone managed to negotiate a price and lower it greatly (Boateng 2001, p. 30).

The advantages of Vodafone in Ghanaian mobile deal for the company

• The deal will give Vodafone an opportunity to become the Ghana’s third largest mobile provider (17% of market share and and 1.4 million customers).
• The research points on the investment potential of mobile phones in African region.
• African market is rather attractive from the point of view of its economical profit (‘Vodafone in Ghanaian’ 2008).

Strong strategic rationale and turnaround opportunity

• Ghanaian telecommunications market is growing.
• Total population of Africans is 24 million (about 50% is under 25 years old).
• Real GDP growth in 2007 is 6.3%.
• Low mobile penetration from outside.
• “Significant additional growth prospects from recent oil field discoveries” (Vodafone 2008).

What consequences of budget lowering may be observed

1. Ghana Telecom will not agree to lower the price as it is already much reduced.
2. We will not be able to negotiate a lower price.
3. Vodafone will lose an opportunity to enter African market.
4. Vodafone company is supported with the British government now, there will not be such opportunity in future.

Survey to influence your decision of budget reduction

• We will become the third company in the relation to market share.
• Market share will be 17% first and rise till 25% in next 5 years.
• 99% of the total number of lines.
• 90% market share of the retail Asymmetrical Digital Subscriber Line market.
• Revenue growth of 9.3% in 2007.

Increasing the budget to the necessary sum we may await

• US $500 million form Ghana Telecom for restoring and expanding network coverage that are necessary and completing and integrating the fibre backbone.
• Having the experience in rapid network deployment in India, we may use it in Africa.
• M-PESA and ultra-low cost handsets may be offered to the consumers to accelerate Ghana Telecom’s growth.
• Taking into account these actions, the share of the Vodafone on the African market may be about 25 % (Vodafone).

Reference List

Boateng, O 2001, How the British got Ghana Telecom for Vodafone. New African, Iss. 491, pp. 30-33.

‘Vodafone in Ghanaian mobile deal’ 2008, BBC News. Web.

Vodafone 2008, ‘Acquisition of a 70% Stake in Ghana Telecom’. Web.