The competitive environment of COM can be evaluated using Porter’s Five Forces Model. The model assesses the competitiveness of the industry based on the following five forces:

1. Threat of New Entrants

• The deregulation of the Ghana telecom industry allowed only a few companies to secure licenses as mobile network operators. Over time, there have never been more than six operators, which reflects high barriers to entry.
• Switching Costs: Over the years, switching costs for consumers have reduced significantly, allowing easier migration between service providers. Developments like Mobile Number Portability (MNP) and the Significant Market Power (SMP) regulation have lowered switching costs, intensifying competition.
• Capital Requirement: High fixed and licensing costs create barriers to new entrants. COM’s high capital investments (GH¢5.77 billion in non-current assets) illustrate the significant financial requirements to compete.
• Government Licensing: The licensing process is highly regulated, limiting the number of new operators, thus maintaining a competitive buffer for existing players.

2. Rivalry Among Existing Firms

• Low Switching Costs: With low switching costs due to MNP, competition is fierce as operators try to attract and retain customers. COM, as a market leader, could experience lower profitability than its rivals due to this increased competition.
• High Fixed Costs: High fixed costs lead to aggressive competition for customer acquisition, resulting in price reductions and lower profitability across the sector.

3. Bargaining Power of Suppliers

• The telecommunications industry relies heavily on a few key infrastructure suppliers like Ericsson, Nokia Siemens Networks (NSN), and Huawei, giving suppliers considerable bargaining power.
• No Substitute for Tower Services: Operators depend on tower companies for connectivity services, increasing supplier leverage. However, the growing consolidation of telecom operators gives them more purchasing power.

4. Bargaining Power of Buyers

• Buyers have gained more power with reduced switching costs and alternative products like over-the-top (OTT) services, including WhatsApp, Viber, and Skype. These factors pressure service providers to maintain competitive pricing.

5. Threat of Substitute Products

• The main substitute services include OTT applications and data services from non-mobile providers like Internet Service Providers (ISPs) and Broadband Wireless Access Providers (BWAP). These services compete directly with telecom services like mobile voice and data.
• Low Switching Costs: Customers can easily switch between services with minimal cost, adding to the competitive pressure in the market.

Impact on COM’s BRIGHT Strategy:

• Customer Experience (B): The competitive environment necessitates continued investment in improving customer service and network reliability to stay ahead.
• Returns and Efficiency (R): With increasing competition, COM must focus on cost efficiency to maintain profitability despite pricing pressures.
• Commercial Performance (I): COM must expand its subscriber base and defend its position as a market leader across multiple service segments.
• Growth through Data (G): The rising demand for data services presents an opportunity for COM to strengthen its leadership in this growing segment.
• Hearts and Minds (H): Ensuring employee satisfaction and engagement will be critical as competition increases in the sector.
• Technology Excellence (T): Investment in cutting-edge technology will help COM maintain a competitive edge and ensure quality services for customers.