SCS – Nov 2021 – L3 – Telecom Sector Challenges and Strategic Growth in Ghana

The case study highlights the telecommunications industry in Ghana, focusing on COM Group Limited, the market leader. The telecom sector has evolved significantly, with liberalization efforts since the 1990s introducing competition and innovative products. COM Group has maintained market leadership but faces a rapidly changing environment, particularly in the areas of mobile money, voice, and data services.

The case explores COM’s strategy, referred to as the “BRIGHT” strategy, emphasizing customer experience, operational efficiency, commercial performance, and technology. The company faces both internal and external challenges, such as intense competition, high costs of infrastructure investment, and regulatory pressures. One of the pressing issues is the need to secure 5G licenses and financing options for the new equipment.

The company’s mobile money service has grown significantly, becoming a key strategic focus, while other areas like fixed-line services are declining. The board is keen to explore strategies to strengthen COM’s market position and address risks such as market saturation, regulatory actions, and corporate governance concerns. The company must also deal with increasing competition from over-the-top (OTT) services like WhatsApp, which have affected the traditional voice revenue streams.

The case also discusses the challenges of managing trade receivables and the options for financing 5G investments, either through loans or leasing. The management is tasked with ensuring the company adapts to these dynamic conditions while maintaining profitability and market leadership.