This section features background information and resources relevant to the current research theme. It includes resources produced by WDR and external sources and is organised by regions and topics. An archive of resources recommended in previous research cycles is also available along with news from the WDR/Intelecon Regulatory News Service.
Ghana: Celtel to buy government stake in Westel Print E-mail
Tuesday, 31 July 2007
The Celtel Communication Group is currently negotiating with the government of Ghana to purchase a 66.34% stake in Western Telesystem Company (Westel), the second national operator.

Sources suggest that Celtel is offering between US$ 120 million and US$ 150 million for the government's Westel stake. The Ministry of Communication recently indicated that negotiations between Kinz Telecom and the government for the sale of the Westel stake have failed. The government had reached an understanding with Kinz to pay US$ 250 million for its stake but the parties could not agree on a final share price. In addition, Kinz could not meet the government’s requirement to pay the US$250 million within 45 days. It was therefore government's decision to opt for the second company on the list, Celtel Communications. In March, Celtel, African Soft and Kinz Telecom and Etisalat Communication were selected from seven companies to submit presentations on their technical and financial competence to buy the Westel stake.

Westel was awarded the second national operator license in 1997 and granted a five-year duopoly on basic telecommunications services along with incumbent Ghana Telecom. The company is licensed to provide fixed and wireless telecommunications services throughout Ghana, including basic phone service, mobile, international long-distance, pay phones, data communications, private networks and satellite communications. Westel launched service in 1998.

Originally a wholly-owned subsidiary of the Ghana National Petroleum Corporation, Westel became a publicly traded company following the opening up of Ghana’s market. Western Wireless International of the U.S. took a majority stake, but in its five year duopoly period installed fewer than 3,000 of the 50,000 lines stipulated by its concession. In January 2006 WESTEL became a fully owned state enterprise again following the government's acquisition of the two-thirds equity stake held by ACG Telesystems Ghana.

Celtel started mobile operations in 1998, and since then has built networks in 15 African countries, under licenses that cover more than a third of the population of Africa. The original holding company, MSI Cellular Investments, changed its name to Celtel International in January 2004.

Source: Ghanaian Chronicle - WDR/Intelecon Regulatory News.