Table of Contents
- 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
- Ghana Telecom will not agree to lower the price as it is already much reduced.
- We will not be able to negotiate a lower price.
- Vodafone will lose an opportunity to enter African market.
- 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.