BACKGROUND OF THE STUDY
Prior to the liberalization of the telecommunication sector of Ghana’s economy, the mobile telephony sector of the economy was non-existent. The only telecommunication service available to the populace was limited fixed lines provided by the Ghana Postal and Telecommunication Corporation (GP&T), which had a monopoly. The rate of access to phone in homes was 3 phones per 1,000 inhabitants and its distribution was skewed in favour of urban dwellers especially those in Accra. This led to the springing up of communication centers which charged ten times the rate of operators.
The liberation of the Telecommunication sector of Ghana’s economy in the 1993/94 brought about a sharp growth in the number of mobile operators. In 1993 Celtel (formerly Kasapa and now Expresso), launched the first mobile telephony service in Ghana. As the year 2000, there were four mobile operators (Buzz, Celtel, Spacefon and Onetouch) operating in Ghana but the level of competition among these operators was near zero. During these periods, would be customers had to queue for hours in order to acquire a mobile SIM which were sold at cut-throat prices. Mobile call charges were also extremely high with Spacefon charging GH¢.30 per minute for local locals. These operators were however only providing voice services which were very poor. Owning a mobile phone line was a luxury only a few can afford during these periods.
However, the sector over the past ten years has seen a 300 percentage growth (real terms) in mobile operators and over 2000 percentage (real terms) and subscription. As at today, there are five mobile operators (the four mentioned earlier and Zain) operating in Ghana with the sixth (GLO) at its initial stages of getting established in the country. Currently the rate of