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| Telecel Ghana's Journey Post-Rebranding: Challenges, Market Share Struggles, and the Promise of 5G Image credit: Ghana Chamber of Telecommunication |
Telecel Ghana Rebrands from Vodafone Ghana
On March 12th, 2024, Vodafone Ghana officially rebranded to Telecel Ghana. The transition followed the acquisition of a 70% majority stake in Vodafone Ghana by the Telecel Group.
Operational Control and Acquisition Details
Telecel Ghana gained full control over various operations previously managed by Vodafone, including fixed telephone lines, internet services, voice and data services, as well as cash transfer and other business services.
Customer Dissatisfaction and Persistent Issues
Beforehand, users of then Vodafone Ghana experienced poor network connectivity and often displayed their displeasure through social media. Despite the official rebranding, those issues continue to persist, with customers claiming the problems appear to have worsened.
Market Share Decline and Ambitious Goals
During the public event for Telecel’s rebranding, Group CEO Mo Damush stated that Telecel aims to lead the Ghana telecommunications market after its takeover from Vodafone. However, the company faces a significant challenge to achieve its ambitions, as Vodafone/Telecel’s market share in both Voice and Mobile Data has been declining since 2017. In 2022, Telecel held just 14.15% of the Mobile Data market share and 18.97% of the Voice market share in Ghana.
Payment Dispute with ATC Ghana
Last week, ATC Ghana, the tower company that hosts telecom companies' equipment and supplies power to the equipment, publicly stated that Telecel Ghana failed in its payment obligations. As a result, ATC cut off the power supply to Telecel's network equipment hosted on its towers. Telecel Ghana refuted this, calling ATC Ghana's statement about non-payment "false." The Ministry of Communication and Digitisation intervened, instructing ATC Ghana to resupply power to Telecel following discussions. The NCA will arbitrate the "non-payment" issue between the two companies.
5G Broadband Services: A Potential Game Changer?
In May 2024, it was announced that Next-Gen Infra Co (NGIC) would begin operations by the end of the year to provide 5G broadband services to mobile operators and internet service providers in Ghana. Companies including Telecel Ghana and AT Ghana will utilize a 5G public network infrastructure provided by NGIC. The Minister of Communications stated that 5G would be operational by September. With 5G in place, Telecel may be able to offer additional services to its customers. However, the question remains whether it will be enough to satisfy its base, especially given that MTN, the current market leader, could also leverage the 5G public infrastructure.
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