With permits to construct new base-station sites taking a minimum of six months, Ghanaian network operators are warming up to the idea of infrastructure sharing. Separate permits are required from the Environmental Protection Agency (EPA), the Ghana Civil Aviation Authority (GCAA), the Ghana National Fire Service, as well as District, Metropolitan and Municipal Assemblies. These agencies are overwhelmed by the number of applications, with the operators rolling out hundreds of new sites every year.
By March 2009, there were about 3,000 telecom masts across the country, comprising 1,650 for MTN, 700 for Tigo, 380 for Vodafone, 250 for Zain and 110 for Kasapa.
MTN has provided a list of all its existing and proposed future cell sites to its competitors, but some have not reciprocated the gesture. Ghana’s largest mobile operator is interested in co-location deals that go beyond the sharing of cell sites and may include the sharing of fibre routes as well.
In January 2010 Millicom Ghana agreed to sell 750 towers to Helios Towers Ghana (HTG), a subsidiary of Helios Towers Africa. At the same time, Millicom Ghana and HTG entered into a long-term leasing agreement under which HTG will provide Millicom with access to towers, including a build-to-suit agreement. As part of the deal, Millicom will also gain a minority interest in HTG. The transaction is expected to create savings in both capital and operating expenditure for Millicom. HTG is seeking similar agreements with other operators in Ghana.
The NCA is planning to license additional companies to install telecom infrastructure for co-location. The Millicom-Helios deal came just before the need for tower sharing gained additional momentum in February 2010 when the Ministry of Environment, Science and Technology (MEST) banned the erection of telecommunications masts in the country until further notice. According to the Environmental Protection Agency (EPA), about half of all telecommunications masts in Ghana were erected without the required permits. There has been public outcry against the location of some masts, accidents, land disputes and alleged health implications. MTN sold 1,856 of its towers to America Tower Corporation (ATC) in 2011.
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Mobile Voice Market Share
(Source: National Communications Authority, Ghana, August 2012)
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Ghana market overview
Population: 25m
Mobile subscribers: 21.2m
Mobile penetration: 84.8%
GDP per capita (PPP current USD): $1,884
Internet users per 100: 14
(Source: World Bank, 2011)