Vodafone Ghana is one of the leading telecom companies in the country, by market share about 20%. It offers a range of services including voice, data, mobile money and business solutions.
However, in recent years, the company has faced several challenges that have eroded its reputation and customer satisfaction.
So what went wrong?
The story of Vodafone
In late 2007, the Government of Ghana created the National Communications Backbone Company (NCBC)a semi-autonomous corporate entity to manage the completed fiber optic transmission network, which was then operated and controlled by the former Voltacom, a wholly owned subsidiary of Volta River Authority (VRA) which at the time provided backbone services in Ghana.
Huawei Technologies SA Gh. Ltd, a Chinese multinational telecommunications company, was tasked with upgrading and expanding the existing VRA OPGW fiber optic network by connecting it to all regional capitals and 36 major cities and towns across the country via fiber optics to improve e-governance and rural telephony and internet services.
National Communication Backbone Company was created to provide broadband capacity for the development and implementation of Information and Communication Technology (ICT) at the national level to pave the way for Ghana’s economic and social development. This was also aimed at improving governance, expanding educational opportunities, human resource development, health care provision, general trade, modernized agriculture and also improving environmental monitoring and business development.
The first phase of the national fiber optic backbone network was completed in December 2007. 100% of NCBC was transferred to Ghana Telecom in August 2008, prior to the purchase of Vodafone.
Gradual decline in market share
The Government of Ghana keep 30% of Vodafone Ghana Telecom with Vodafone owns 70%. However, over time, Vodafone has been losing market share to its biggest competitor MTN.
In 2022 Vodafone had only 18% of the voice subscription market share.
Slow on 4G
Vodafone Ghana was late to the 4G race. MTN launched with the 4G service in 2017. Vodafone launched with 4G service in 2019, two years after MTN. With its late start, Vodafone could not keep up with its rival in the 4G space.
Vodafone Ghana lags behind its competitors in terms of innovation and digital offerings. The company should invest more in developing and launching new products and services that meet the evolving needs and preferences of its customers.
Poor customer service and complaint resolution
Another factor that has affected Vodafone Ghana’s performance is the poor customer service and complaint resolution it provides. Many customers have reported encountering rude, unprofessional and unhelpful staff when contacting Vodafone Ghana’s customer service center or visiting its retail outlets.
They also claim that their complaints are not resolved in a timely and satisfactory manner. Some customers have even taken to social media platforms to express their frustration and dissatisfaction with Vodafone Ghana’s service delivery.
Sale to Telecel Group
Vodafone Group officially sold 70% of its stake in Vodafone Ghana to Telecel Group in 2022. The deal was approved by the Ghanaian government in 2023.
Telecel Group plans to rebrand Vodafone to “Telecel” by the end of February 2024.
Back on track
So, how can Vodafone Ghana (soon to be Telecel) turn things around under its new owners? Here are some possible strategies that could help the company regain its brand and market position in Ghana.
Investment in innovation and digital transformation
Vodafone Ghana lags behind its competitors in terms of innovation and digital offerings. The company needs to invest more in developing and launching new products and services that meet the evolving needs and preferences of its customers.
For example, Vodafone Ghana could introduce more mobile money solutions, e-commerce platforms, content streaming services and cloud computing solutions. These could help the company diversify its revenue streams and attract new customer segments.
Rebranding and repositioning
The company needs to reinvent itself and reposition itself as a modern, affordable and customer-centric telecom provider that offers value-added services and solutions. The company could also leverage its social responsibility initiatives and partnerships to improve its brand image and reputation.
Focus on customer retention and acquisition
The company has a loyal customer base of over 9 million subscribers, but also has a high churn rate and low market share. The company should focus on retaining its existing customers by offering them competitive rates, attractive packages, loyalty rewards and excellent customer service.
The company also needs to acquire new customers by expanding its distribution channels, offering promotions and incentives and targeting underserved segments such as rural areas, youth and SMEs.
It remains to be seen whether the new owners of Vodafone Ghana will be able to compete and turn the brand around amid intense competition and declining subscribers.
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