Year 2000 Performance

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Presenting GHANA TELECOM on world Telecom Day, 15
May 2002
By Muinnudin Mohamed Chief Marketing
Officer Marketing Regional Operations
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Contents Of Presentation

• Background information on GT
• Achievements - Marketing, Network Finance
• (Key statistics performance indicators ),
  Human Resource Development Social Contributions
• International Connectivity
• Challenges Opportunities
• Way Forward

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Ghana Telecom Background Information
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Stock Purchase and Sale Agreement
Date of incorporation - 16th June 1995 Signing
of Stock Purchase and Sale Agreement - 19th
February 1997 Name of company - Ghana
Telecommunications Company Ltd. Equity - 70
Govt. of Ghana 30 G-Com Limited
(Consortium) G-Com Limited - 85 Telekom
Malaysia 5 Sulana Electric 5
NCS 5 Giant International Paid up
capital - 50,000,000 Managing Director -
Elected by G-Com Limited Exclusivity Period - 5
years (1997 - 2001) Protected telephony
service
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Ghana Telecom Operating Licence
Period - 20 years Area - Republic of
Ghana Services - Voice telephony
Cellular communication Paging Carrier
Services (Leased Circuits) Telex
Telegraph Satellite Communication
Value-Added Services Fees - Initial Fee USD
100,000 Annual Fee - 1 of net
revenue - Ghana Investment Fund - 1 of net
revenue - Spectrum fees - lt 0.01 of net
revenues
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(No Transcript)
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Our achievements...
Marketing
Achievements.. - increasing customer base
from 77,886 in 1996 to 242,122 in 2001
(and now,as at Mar-02, 255,835). - Increased
Payphone deployment from 453 in 1996 to 4,299 in
2001 (and now, as at Mar-02, 4,528
Payphones) - Enhanced Telephone Service,VSAT,
Centrex, GSM Mobile,GTNet (High speed
Leased Line Internet access) and
FASTnet (high speed data communication services)
are now available Coming soon. -
ISDN, ONEtouch GSM International Roaming -
Pre-paid cards on fixed network, 1-800 Freephone
and 1 - 600 Tele-info services
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Key Statistics Performance Indicators
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Marketing Highlights before Privatization
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Marketing Highlights after privatization
Our achievements...
1997
2001
2000
1999
1998
Year ended 31st Dec.
201,148
158,398
133,396
Telephones
242,122
100,932
32.2
18.7
27
20.4
29.59
Growth
3,180
1,815
Payphones
4,321
500
3,044
263
Growth
67.7
4.47
35.9
10.4
1.31
0.57
1.09
0.81
0.72
Penetration per 100 People.
3,959
3,555
3,777
3,599
3,467
Employees
29.68
53.26
44.01
38.49
Lines per employee
61.16
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Contractual Targets on Telephones Payphones
Our achievements...
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Graphical Representation DEL Payphone Growth
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Penetration per 100 People Lines per Employee
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Telephone Lines per 1000 inhabitantsWhere is
Ghana in 1995 2000
Source Data ITU web site
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Contractual Targets on Fault Maintenance
Operator Response
Our achievements...
Contractual Period Jan to Dec
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Targets Achievements For Call Completion Rate
Our achievements...
Contractual Period Jan to Dec
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Our achievements...
Network
Achievements. Comparing Ghana
Telecoms Network Before And After
Privatization
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GTs NETWORK ( Before 1997)
PSTN
POTS
Analogue WLL
Payphones
Analogue Leased Lines
Telex
Customers
Linking people everywhere..
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GTs NETWORK TODAY
PSTN
INTELLIGENT NETWORK
GSM
Centrex
ISDN
Freephone
GT ONEtouch
Payphones
IDD
Analog WLL
Prepaid Card
Leased Lines
POTS
Premium Rate
Enhanced Services
CUSTOMERS
VSAT
INTERNET
DATA NETWORK
Telex
GT FASTnet
GT ISP
Linking people everywhere..
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Our achievements...
Network
Achievements. - Long term contracts for every
component of network in place ensuring fast
roll out at reasonable cost - Standard
specifications for network element implemented
- Network capacity increase from 112,899 ELC in
1996 to 320,340 ELC in 2001 (an increase of
about 184 ) - Digitalization of all exchanges
-73 exchanges - Digitalization of trunk
transmission link with PDH and SDH (
on-going ). More than 90 of the transmission
links are now digitalized
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Developments in GT Exchanges
Our achievements...
Before Privatisation After
5 Yrs Privatisation
Besides Digitalising all exchanges Customer
Access has grown by 131 from Feb-97
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Our achievements...
Reduction in Network Cost

• On the average per unit cost of exchange line
  and Copper access has dropped by 87 within five
  years
• This was possible as a result of
• Transparent tendering and evaluation process
• Aggressive negotiations with suppliers
• Savings realized thus amounted to US 100 million

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Our achievements...
SDH Fiber Transmission For Accra Multi Exchange
Area (MEA) Fiber Optic Cable Project

• Project to connect all exchanges in Greater
  Accra with
• very high speed fiber optic cable network
  work in progress
• Cantonments and Accra-North international
  switches already
• connected to the High Street cable station
  which connects to
• the SAT-3/WASC submarine optic fiber cable.
• Project when completed in a years time will
  benefit customers in
• Greater Accra with higher quality superior
  interconnection

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GSM Mobile Service - ONEtouch
Our achievements...

• Launched in October 2000 with a switch capacity
  of 100,000 customers.
• By end of Dec-00 connected 21,000 customers
  (about 21). As at today our Customer base is
  about 75,000.
• 82 base stations nationwide
• Covered 8 out of the 10 regional capitals
• (Bolga and Wa to get connected by 3rd Qtr of
  2002)

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Our achievements...

• International Connectivity
• 2 International Switching Centers (located in
  Cantonments Accra-North provide IDD to over 232
  countries around the world)
• Satellite Earth Stations (Nkuntunse)
• SAT-3/WASC Submarine Fibre Optic Cable

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...SAT-3/WASC is
the logical conclusion to
the missing link
SESIMBRA
ALTA VISTA
Chipiona
Dakar
SMW-3
Penang
Melkbosstrand
Cape Town
together with ATLANTIS 2, SAFE and SMW3 enables
direct submarine fibre optic cable connection to
more than 55 destinations
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SAT-3/WASC SUBMARINE FIBRE OPTIC CABLE ( 28,800
km and Cost US650M)
1. Connecting Dakar (Senegal) to Cape Town(South
Africa) with the following landing
points

• Abidjan (Cote DIvoire)
• Accra (Ghana)
• Cotonou (Benin)
• Bonny (Nigeria)
• Duala (Cameroon)

2. Also connects to Sisimbra in Portugal, and
Alta Vista in Spain
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...SAT-3/WASC SUBMARINE FIBRE OPTIC CABLE (Ghana
Telecoms Commitment)

• Ghana Telecom has invested US 24m in the project
• Installations completed commissioned
• Last week - Ghana established link with Senegal
• This week - established link with S.Africa
• Next week - establish link with Cote D Ivoir

Note Countries unable to benefit from the
SAT-3/WASC Guinea, Gambia, Sierra
Leon, Liberia and Togo
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...SAT-3/WASC SUBMARINE FIBRE OPTIC CABLE (
Benefits )

• Provide superior, high quality cost effective
  direct cable connectivity Western Southern
  African countries (73 of Sub-Saharan Market) and
  South Asia for both voice data communication
• 100 owned by African Operators.
• No 3rd party equity investor
• Any additional capacity revenue would be shared
  among Operators

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Our achievements...
Financial

• Increasing revenue from 164.2 billion Cedis in
  1996 to 525.2
• billion Cedis in 2000, average growth of about
  40 over 5
• years
• Increased Asset base from 406.9 billion cedis in
  1996 to 1.5
• trillion cedis in 2000.

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Operating Revenue Profit before Tax
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Human Resource Development
Our achievements...

• GT Training Center upgraded with new modern
  computer based training methods
• Besides the technical courses, courses on
  Finance, Marketing, Management IT are now
  taught at the training center
• In affiliation with Multimedia University of
  Malaysia the center has established a Diploma
  course in Telecom Engineering for SSS graduates
  ( two batches of 48 students already graduated
  whilst another 63 currently undergoing training.
  The programme includes 2 months on the job
  training in Telekom Malaysia)
• Scholarship scheme for brilliant but needy
  students in aid of Govt educational funding.

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Social Contributions
Our achievements...

• Sponsoring sporting activities notably soccer,
  boxing and golf
• Financial assistance to patients to
• undergo medical treatments and purchase of
  wheelchair for cripples
• Contributed 40 million towards Accra stadium
  disaster Fund
• Renovation of Korle-Bu Hospital ward
• Financial assistance towards organization of
  summits notably Panafest (Aug-97), Africa African
  American summit (Mar-00 Mar-01), CTO workshop
  (Jul-00), Homecoming summit ( Jul-01)
• 3 Bus shelters provided. More are yet to be
  deployed.

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Key Challenges Opportunities
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Challenges

• Dilapidated infrastructure and equipment (60 -
  70 to be replaced)
• Poor Attitude/Commitment of staff
• Need to raise the level of Computer literacy
• Insufficient skilled manpower
• Elimination of Fraud, Taking of bribes and
  extortion of moneys from customers
• Office Automation not fully completed
• Billing Complaints Recently upgraded the Billing
  System at a cost of
• US 1.8 million to improve billing credibility
  and also enables itemized
• billing for other regions
• low Customer satisfaction in the form of
• - High demand for telephone service
• - High Fault Incidence but Low Fault
  Clearance rate
• - Low Call completion rate

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...Challenges

• International revenue on decline due to the fall
  in accounting
• rates competition (illegal VOIP operators)
• Increasing capital and operation expenditures
  due to depreciating
• Cedis
• Huge borrowings required to fund network
  expansion Switches,
• Cable Access, Transmissions including Towers,
  Generators for
• repeater stations and Buildings
• Borrowing capacity reduced due to depreciating
  Cedis
• Declining profit 1996 1997 1998 1999
  2000
• Profit after tax 6.8 57.3
  119.1 123.2 60.2

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...Challenges

• Entry of new players (Liberalization policy of
  NCA)
• Power of buyers getting stronger (More
  alternatives)
• High cost of fund
• Freedom of media
• Meeting governments aspiration to provide telecom
  services
• nationwide within the next 2-3 years

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Opportunities

• Low penetration (end 96 - 0.42/today - 1.37)
• Industry - growth stage
• Government Vision 2010
• Political stability
• Fiscal stability
• Strong growth in the economy especially in the
  service sector

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The Way Forward...

• Endeavour to meet Govt. aspiration by providing
• Telecom services throughout the Nation in the
• shortest possible time
• Improve corporate image by become a Caring
• Organisation in meeting the Telecommunication
• needs through Total Customer Care.
• Introduce new equipment and technology to
  improve
• the efficiency of Telecommunication services
• Continue to increase productivity through the
• implementation of Quality initiatives
• Endeavour to meet Stake Holders expectations in
• attaining regional excellence - IPO listing of
  GTs share within 1-2 years

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linking people everywhere