THE NATURE OF IMPACT AND RELATIONSHIP BETWEEN MOBILE

TELECOMMUNICATION AND POSTAL SERVICE

 ABSTRACT
The significance of communication can not be overemphasized in building an
information society. Telecommunication technology is increasingly improving the
productivity of businesses and economies of countries all over the world. The
telecommunication sector is therefore recognized as an instrument that facilitates the
creation of an enabling environment for the development of the economy. This has
made governments of both developed and developing countries to pay more attention
to this sector.

In spite of the actions taken to reclaim the image of the telecommunication industry,
not much attention was given to the postal sector hence affecting its operations in
many respects. The research reported on the nature of impact and relationship
between mobile telecommunication and postal service. It explored into the utilization
of postal services as a result of the advent of mobile telecommunication, the
contribution of the postal services industry to the country’s development and the
challenges faced by the postal services industry as a result of the increase in the
mobile telecommunication.
The study sample was 100 users of both telecommunication and postal services. This
was supplemented with interviews with Ghana Post, Ministry of Communication and
sub postal office branch of Adum. Data were analyzed using descriptive statistics.
The study has established through its findings that the utilization of traditional postal
services such as letter posting has reduced considerably as a result of the introduction
of mobile telecommunication. However, services like EMS is still being highly
patronized due to its reliability in mail delivery. It was also realized that postal service
industry contributed to national development along economic, social and political
lines. Economically, the industry provides a significant employment to the Ghanaian
populace and also serving as a source of revenue for the government. Socially, it has
been identified to promote literacy levels by providing a medium for school children
to communicate with pen pals world-wide.

Moreover, it also serves as symbols of development, tourism promotion and portrayal

of culture through its commemoratives with flora and fauna. Politically, it was found
out that the postal service industry contributed towards ensuring smooth elections by
serving as a transit point for both election and civic materials. The study also

ii
established that the postal industry faces three key challenges. Firstly, the advent of
advance telecommunication such as mobile messages and electronic mails are fast
replacing the postage of letters and also faced with fierce competition from other
courier operators such DHL and informal operators like inter city STC and other
transport services. Secondly, it was realized that sixty six (66) out of the hundred and
twenty seven post offices are non-viable. The third challenge has to do with mail theft
(tampering) and stamp/ postal duplication. In the light of these, five separate but
interrelated policy measures were identified as pre-requisite for effective and
sustainable action. They are turning new technologies into business opportunities
rather threats, rolling out internet service access, investing in sustainable marketing
campaigns, ensuring security of mails and customer confidence and establishing
relevant management structure.

The study concluded that the future of the postal industry is bright, but what is clear is
that, the post will ignore new technologies at their peril. Hence, in order to place
Ghana’s postal network in the same train as the telecommunication industry, more
partnerships need to be forged between postal administrations and key industry
players.

iii
 ACKNOWLEDGEMENT
At long last, the journey to the new phase of the academic perfection has come to an
end and it is time to show appreciation to all those who contributed in diverse ways to
all those towards the achievement of this great height. The list is tall, but I cannot list
them all. However, special mention should be made of my supervisor, Dr. Michael
Poku-Boansi, whose comments were critical and thought provoking. He did not only
meticulously read through my numerous manuscripts but also encouraged and showed
me fatherly love to strive for perfection. The value of his support is indescribable in
mere words.

My gratitude also goes to Felix Twum Barimah, Teaching/Research Assistant of the

Department of Planning. My next heartfelt gratitude is to Mr. Gabriel Boakye
Thompson and Mr. Andrews Salakpi of Ghana Post Company Limited, who in
diverse ways contributed to the success of this thesis. Some of the senior members
whose names I will not mention also encouraged me, read my drafts, gave me insights
into the various concepts adopted in the study.

Next, my heartfelt gratitude goes to all those who contributed to the success of my
education especially my lovely parents and friends.

iv
 LIST OF ABBREVIATION
ADB Agricultural Development Bank
ADP Accelerated Development Plan
CCK Communications Commission of Kenya
EMS Expedited Mail Services
GFRCB Ghana Frequency Regulation and Control Board
GIFTEL Ghana Investment Fund for Telecommunication
GNA Ghana News Agency
GT Ghana Telecom
ICT Information Communication Technology
IMF International Monetary Fund
IMT Instant Money Transfer
ITU International Telecommunication Union
KPTC Kenya Postal Telecommunication Corporation
MDG Millennium Development Goal
MoF Ministry of Finance
MoTC Ministry of Transport and Communication
MTN Multinational Telecommunication Network
NCA National Communications Authority
P&T Postal and Telecommunications Corporation
PCSRC Postal and Courier Service Regulatory Commission
PRSPI Policy Research and Strategic Planning Institute
SMS Short Messages Services
SPSS Statistical Package for Social Scientists
UNDP United Nations Development Program
UPU Universal Postal Union
WSIS World Summit on the Information Society

v
 TABLE OF CONTENT
ABSTRACT..........................................................................................................ii
ACKNOWLEDGEMENT..................................................................................iv
LIST OF ABBREVIATION................................................................................v
TABLE OF CONTENT......................................................................................vi
LIST OF TABLES..............................................................................................ix
LIST OF FIGURES.............................................................................................x

CHAPTER ONE:GENERAL INTRODUCTION

1.1 Introduction....................................................................................................1
1.2 Problem Statement.........................................................................................2
1.4 Scope of the study...........................................................................................3
1.5 Justification of the study................................................................................4
1.6 Methodology...................................................................................................4
1.6.1 Research Design........................................................................................4
1.6.2 Mode of Data Collection and Source........................................................4
1.6.3 Sampling Techniques................................................................................5
1.6.4 Data Analysis............................................................................................5
1. 7 Research Limitations....................................................................................6

CHAPTER TWO: NATURE OF IMPACT AND RELATIONSHIP BETWEEN

TELECOMMUNICATION AND POSTAL SERVICES

2.1 Introduction....................................................................................................7
2.3 Telecommunication in Ghana- A Historical Perspective............................9
2.4 Liberalization of the Telecommunication Sector......................................10
2.4.1 Global perspective...................................................................................10
2.5 Performance of the Telecommunication Sector Prior to the
Restructuring Policy..........................................................................................11
2.6 The restructuring of the telecommunication sector..................................12
2.6.1 Regulatory Bodies of the Telecommunication Sector.............................15
2.7 Services Provided by the Telecommunication Industry...........................18
2.8 Impact of the Telecommunication Industry on National Development. .18
2.9 Prospects and Challenges of the Telecommunication Industry...............20
2.10 Postal Services in Ghana- A Historical Perspective................................21

vi
2.11 Services Provided by the Postal Industry................................................22
2.12 Performance of the Postal Industry..........................................................24
2.12.1 Financial Performance of Ghana Post Company..................................26
2.12.2 Working capital.....................................................................................26
2.12.3 Market...................................................................................................27
2.12.4 Assets utilization...................................................................................27
2.12.5 Contribution of the various services......................................................27
2.13 Impact of the Postal Industry on National Development.......................28
2.14 The role of the post in achieving the millennium development goals....29
2.15 The case of Malaysia..................................................................................30
2. 15. 1 Telecommunication in Malaysia.........................................................30
2.15.2 Postal services in Malaysia...................................................................31
2.16. The case of Kenya......................................................................................31
2.16.1 Telecommunication in Kenya...............................................................31
2.17 Summary of Lessons Learnt from the Review........................................33
2.18 The Conceptual Framework of the Research..........................................34

CHAPTER THREE:ANALYSIS AND PRESENTATION OF DATA

3.1 Introduction..................................................................................................36
3.2 Profile of Study Area...................................................................................36
3.2.1 Location and Size....................................................................................36
3.2.2 Population Size and Growth Rate...........................................................36
3.3 Telecommunication Infrastructure in the Metropolis..............................37
3.4 Postal Services in Kumasi Metropolis........................................................38
3.4.1 Mail traffic..............................................................................................38
3.4.1 Agency services.......................................................................................39
3.5 Mobile Telecommunication Services provided by operators in the
Metropolis...........................................................................................................40
3.6. Overview of respondents............................................................................41
3.6.1 Educational level of respondents.............................................................41
3.6.2 Economic Characteristics of respondents...............................................42
3.6.2.1 Employment status...........................................................................42
3.6.2.2 Income levels of respondents...........................................................43
3.7 Amount spent on communication...............................................................43

vii
 3.8 Kind of communication service patronized...............................................44
3.9 Waiting time.................................................................................................45
3.10 Utilization of postal services by people.....................................................46
3.10.1 Utilization of mail traffic (universal service)........................................46
3.10.2 Utilization of EMS................................................................................46
3.10.3 Utilization of Money order....................................................................47
3.10.4 Utilization of agency services...............................................................47
3. 11Contribution of the postal industry to national Development...............47
3.12 Challenges of the Postal services...............................................................49

CHAPTER FOUR: FINDINGS, RECOMMENDATIONS AND CONCLUSION

4.1 Introduction..................................................................................................51
4.2 Major Findings.............................................................................................51
4.2.1 Utilization of Postal services...................................................................51
4.2.2 Contribution of the postal service industry to national development......52
4.2.3 Challenges faced by the postal services industry....................................53
4.3 Recommendations........................................................................................53
4.4 Conclusion.....................................................................................................55
REFERENCES...................................................................................................57
APPENDICES....................................................................................................59

viii
 LIST OF TABLES
Table Page
2.1: Financial Performance of Ghana Post Company Limited (1996-2006) 25
2.2: Financial Performance of Ghana Post Company 26
2.3: Contribution of the various services to the company’s revenue in 2007 28
3.1: Age and sex distribution of respondents 41
3.2: Educational levels of respondents 42
3.3: Income levels of respondents 43
3.4: Type of service patronized 44
3.5: Waiting time 45

ix
 LIST OF FIGURES
Figure Page
2.1: Financial performance of Ghana Post 25
2.2: Financial Performance of Ghana Post Company (Profit before Tax) 26
2.3: Chart showing the contribution of the various services to the
Company’s revenue in 2000 28
2.4: The Conceptual Framework of the Research 35
3.1: Administrative Map of Ghana 37
3.2: Employment Status of respondents 42

x
 CHAPTER ONE
GENERAL INTRODUCTION
1.1 Introduction

The significance of communication can not be overemphasized in building an

information society (Brown, 1993). Telecommunication technology is increasingly
improving the productivity of businesses and economies of countries all over the
world. Companies now use satellites, microwave, transmitters, facsimile machines,
and teleconferencing and fiber optic telephone lines to conduct business quickly and
efficiently which basically reduces cost and increases revenue. The
telecommunication sector is seen as an instrument that facilitates the creation of an
enabling environment for the development of the economy. The sector provides
means of accessing and sharing information for informed decision making that
contribute to development (Ibid). Apart from the sector’s remarkable contribution to
the economy particularly in the area of the nations GDP, the sector also plays a
strategic role in achieving the Millennium Development Goals.

The telecommunication sector in most countries was ran basically on monopoly basis
either by public administration or state owned enterprise while some countries,
especially the USA opted for a system of issuing license to private companies as
monopolies in specific states (Frempong,2004). Around the 1980s and 1990s there
was a major transition in the telecommunication industry globally which led to the
restructuring of the telecommunication industries in most parts of the world. This
liberalization and privatization in the sector has led to competition and innovation in
the sector which compels the providers of these services to provide quality and
affordable services to their customers (Ibid).

In the case of Ghana, the government adopted the Accelerated Development Plan in
1994 to revive the telecommunication industry after the country’s prolong economic
challenges in the 1980s. In spite of the actions taken to reclaim the image of the
telecommunication industry, not much attention was given to the postal sector. The
country seems to pay more attention to the telecommunication industry at the expense
of postal industry. This unfortunate bias towards the Telecommunication industry has
therefore affected the operations of the postal industry in many respects. However, in

1
 2
order to achieve three of the critical goals of the millennium Development Agenda
that is to promote global partnership for development, eradicate extreme poverty and
hunger and achieve universal primary education, the postal industry has a crucial role
to play. It is therefore in the light of this that the study is devoted towards assessing
the nature of impact between Telecommunication and Postal services.

1.2 Problem Statement

In the contemporary world, Telecommunication has become very critical to the global
socio-economic system. It has become the lifeline of the world’s business,
administrative, bureaucratic and social organizations. Telecom has become an
increasingly important component of economic growth and the engine of evolving
global information society (ITU, 1998). Apparently, governments of both developing
and developed countries have taken keen interest in the development of the industry.
However, this has been done at the expense of the postal industry which was
previously performing on a higher pedestal of growth.

In Ghana, following the liberalization of the telecommunication sector in the late

1990s, there has been astronomical increase in mobile telecommunications which tend
to affect the operations of postal services in the country. The recent problems that the
postal industry is facing as result of the upsurge of the Telecom industry could be
summarized as follows: Reduction in the access to the service, low quality of services,
low revenue accruing to the industry among others. The new technologies have
further expanded the competitive field by presenting super-speed and cost effective
alternatives. It has been suggested that the new forms of technology-driven
communications is the last nail on the coffin for the traditional postal products
(Ameyo, 2005). Little is known with regards to the development initiatives taken by
the government to improve the postal sector to be able to survive the increasing
competition that has arisen as a result of the restructuring of the telecom sector. This
seems to attest to the fact that the introduction of the cell phones and the internet
services is making the Postal service very irrelevant.

As the nation aspires to attain middle income status by 2015, it is important to identify
and develop sectors of the economy that seek to contribute significantly to socio-
 3
economic development whilst an attempt should also be made to deal with
inefficiencies and low productivity of sectors to transform the 2015 dream to a
reality. This brings to the fore some unanswered questions as far as these new
developments are concerned. The study therefore sought to find answers to the
following questions:
1. How has the services of the postal industry been utilized after its
separation from Ghana Telecom?
2. What is the contribution of the postal service industry to the development
of Ghana?
3. What are the challenges faced by the postal services as a result of the
increase in the mobile telecommunication?
4. What recommendations could be made to improve the postal services?

1.3 Research Objectives

The overall objective of the study is to assess the impact of the Telecommunication
industry on the development of the Postal industry.
Specifically the study aims to achieve the following:
1. To investigate into the utilization of postal services as a result of the advent of
mobile telecommunication;
2. To assess the contribution of the postal services industry to the country’s
development;
3. To identify the challenges faced by the postal services industry as a result of
the increase in the mobile telecommunication; and
4. To make recommendations to improve the postal services in Ghana.

1.4 Scope of the study

The geographical scope of study is the Kumasi Metropolis in the Ashanti Region of
Ghana. The study was spanned from August, 2008 to June, 2009. The study
undertook both institutional and household surveys to ascertain the performance of
and the challenges posed to the postal services industry since its separation from
Ghana Telecom.
 4
1.5 Justification of the study

The postal market is gradually being eroded with the advancement of technology in
the area of telecommunication which has raised serious concerns amongst policy
makers and some planners at certain quarters of the country. Hence, a study of this
nature will contribute towards formulating policy recommendations to help improve
the operations of the postal industry. This will ultimately lead towards the
achievement of three major goals of the Millennium Declaration that is to promote
global partnership for development, eradicate extreme poverty and hunger and
achieve universal primary education.

Additionally, it is anticipated that the study will lay the ground works for further
research into this area of study to help revamp the image of the postal industry.
Considering these enormous advantages, researching into the nature of impact
between the telecommunication and postal services is justified.

1.6 Methodology

1.6.1 Research Design

The study approach adopted was a case study. The reason for adopting this approach
was that it was not possible to cover all postal institutions and users in Ghana. To
adopt this type of study will require the kind of field work, time and logistics which
were beyond the scope of the research. Instead it was necessary to adopt a case study
approach.

1.6.2 Mode of Data Collection and Source

Data for the study were collected from two main sources. These are primary sources
and the secondary sources. The primary source of data collection took the form of
questionnaire administration to sectored postal institutions in the Kumasi Metropolis
and sample from the general public who use the services of the postal institutions. The
secondary data was done through desk top study from literature related to the
 5
telecommunication and postal industries. This included internet sources, published
and unpublished documents, seminar papers and other relevant documents.

1.6.3 Sampling Techniques

The nature of the study requires that the technique used in sampling should be able to
give the right sample size to enhance the representativeness of the study. In view of
this, the selection of respondents for the questionnaire - interviews was guided by a
sampling procedure. The process involved (i) identification of the sample frame; (ii)
determination of appropriate sample size; and (iii) distribution of the selected sample
size to ensure proper representativeness of both telecom and postal services user-
population. In determining the sample frame, the basic criterion adopted was that a
person should be patronizing either of the services. In applying these thresholds,
appropriate sampling size was established for the study using a statistical sampling
method. Based on these statistical analyses, a total sample size of 100 users
representing 90 per cent confidence level was determined. Following these, the
proportional sampling approach was applied in distributing the chosen sample to both
users in the formal and informal sectors of the economy. The statistical sampling
method adopted was given as:
n = N
1 + N (α) ²

Where: N = Sample Frame; n = Sample Size; 1 = 1; and α = Error Margin which was
at 90 per cent confidence level.

1.6.4 Data Analysis

Information collected from the various sources were collated and analyzed to give
meaning to raw data. Statistical techniques like the Statistical Package for Social
Scientists (SPSS) version fourteen among others was used to analyze the data
collected. The use of tables and graphs were also employed to present of results of
analysis.
 6
1. 7 Research Limitations

The case study methodology has limitations particularly with regards to the
widespread applicability of findings. Case studies are not comprehensive and they
cannot represent the entire postal industry in Ghana in all of its permutations.
Moreover, the findings of the study depend entirely on the truthfulness of the
respondents.

1.8 Organization of the study

The study has been organized into four chapters preceded by an abstract, which gives
a brief general analysis of the major issues in the report. Chapter one considers the
General Introduction. This chapter looked at the introduction, problem statement,
research questions and objectives of the study, scope of the study, justification of the
study, research methodology and limitations of the study.

The second chapter dwelt mainly on the literature review with respect to
telecommunication and postal services from a Global, Sub- regional, national and
local perspectives.

Chapter Three was devoted to the profile of the study area and analysis and
presentation of the field data relating to the contribution of the postal industry to
national development, performance of the industry and challenges posed it after the
separation from the Telecom industry.
The last chapter considered the summary of findings, their policy implication and in
that light recommendation for policy action and further research and conclusion
drawn.
 CHAPTER TWO
NATURE OF IMPACT AND RELATIONSHIP BETWEEN
TELECOMMUNICATION AND POSTAL SERVICE

2.1 Introduction

The advent of the telecommunication industry has been predicted at some quarters to
be the demise of the postal industry in both local and global context (Brown, 1993)
which is the main thrust of the study. This section of the thesis report seeks to provide
a general insight into some of the theoretical underpinnings of the study. It explores
into issues bothering telecommunication and postal services in and around the globe.

The review has been systematically and chronologically presented in themes as

follows: Telecommunication and postal services defined, Telecommunication in
Ghana- A historical Perspective, Services provided by the Telecommunication
industry, Impact of the Telecommunication Industry on national development,
prospects and challenges of the telecommunication industry, postal services defined,
postal services in Ghana- A historical perspective, services provided by the postal
industry, impact of the postal industry on national development, relationship between
the telecommunication and postal industry, Case studies on Telecommunication and
postal service industry in Malaysia and Kenya.

2.2 Telecommunication and Postal services Defined

2.2.1 Telecommunication Defined

The concept of telecommunication is subject to no easy definition. It has been defined

in various ways by different authorities and institutions in different fields of study.
Among these definitions include the following:

According to the Oxford American Dictionary (2 nd edition) telecommunications is

defined as the transmission of data and information between computers using a
communication link such as a standard telephone line. The electronic systems used in
transmitting messages, as by telegraph, cable, telephone, radio, or television. By this

7
 8
definition telecommunication could be taken to mean the exchange of information
over significant distances by electronic means.

The International Telecommunications Union (ITU 1995) also defines

telecommunications as any transmission, emission or reception of signs, signals,
writings, images and sounds or intelligence of any nature by wire, radio, optical or
other electromagnetic systems.

In another vein, Ziff Davis Publishing Holdings Incorporation (1996) views the
concept as communicating information, including data, text, pictures, voice and video
over long distance. That is to say telecommunication involves the transfer of
information from one point another through any electronic means.

Based on the above definitions and the purposes of the study, telecommunication is
defined as the transfer of information between people over specified distance through
an electronic means.

2.2.2 Postal services defined

According to the European Union (1995), postal service is defined as services

involving the clearance, sorting, transporting and delivery of postal items. Where post
items refer to items addressed in the final form in which is to be carried by universal
service provider. The postal items that are dispatched by posts’ include letter post,
parcel post, money orders and so on.

Similarly, the ECN (2000) perceive postal services to be services involving the
collection, sorting, transporting and delivery of postal items between the sender and
addressee.

From the above definitions, it could be inferred that postal services involve processes
that aid in making postal items ready for transportation and delivery from a sender to
an addressee.
 9
2.3 Telecommunication in Ghana- A Historical Perspective

Telecommunication in Ghana started as far back as the colonial era with the passage
of the telephone ordinance in 1889. The ordinance was to ensure the construction and
maintenance of telegraphs (Policy Research and Strategic Planning Institute, 1993).

The operation of the telegraphs first linked Cape Coast Castle and Elmina Castles
which was later extended to the Christiansburg Castle in Osu.

The primary objective behind this was to facilitate the work and operation of the
colonial government (policy Research and Strategic Planning Institute 1993). This
enhanced the efficiency in the dissemination of administrative information with
regards to policy implementation. In 1982 a four kilometer telegraph facility was
constructed between Christiansburg Castle and Victoriaborg and by 1912 the total
telegraph facility in the Gold Cost increased from 4 kilometers to 2387.2 kilometers
with 48 telegraph offices (PRSPI, 1993).

Telephone service in Ghana is said to have gone public in the late 1980s with the
establishment of seventy (70) telephone exchange lines which linked towns like
Cape Coast, Sekondi, Tarkwa and Dodowa having a total subscriber base of
170(PRSPI,1993). The Department of Post and Telecommunication (DPT) was
established as a civic service department in that same year to develop
telecommunication in the country. DPT was charged with the responsibility of
providing both postal and telecommunication services. In 1962, the incumbent
government passed the Telecoms Act (Act 112) which conferred on DPT the power to
issue license for the installation and registration of manufactures and dealers in
communications apparatus. This widened the scope to the DPT as a provider as well
as a regulator of the sector. However in 1965 the incumbent government decoupled
the organization into two different entities which were namely the postal and
telecommunication services (PRSPI, 1993). This split however lasted for only two
years due to the collapse of the government.

A study conducted by the policy Research and Strategic Planning Institute in 1993,
indicated that the National Liberation Council following the collapse of the first
 10
republic, merged the two services to create the post and telecommunication
department (PTD) in 1966. The government of the National Redemption Council
(NRC) in 1974 corporatized the Post Telecommunication Department into Ghana Post
and Telecommunications Corporation (P&T) under the NRC Decree 311, 1974
(Frempong, 2004) . The current corporation continued its dual functions as a player
and regulator under the NRC Decree. Unfortunately the corporation lost some of it’s
regulatory functions especially frequency management in 1977 when the Supreme
Military Council (SMC) passed the telecommunications Frequency Registration and
Control Decree,SMCD71 (Frempong,2004). The Decree established the Ghana
Frequency and Registration and Control Board and granted the board the authority to
issue license and allocate frequency spectrum for the operation of the radio
communication.

2.4 Liberalization of the Telecommunication Sector

2.4.1 Global perspective

The restructuring of the telecommunications industry is posed by several factors such

as technology, globalization, and pressure from multinational corporations and
international organizations were among the environmental factors that called for
restructure of the sector from a single operator to a multiple operator. Environmental
factors have influenced the developed and developing countries. The restructuring of
the sector in the developed countries was carried out as a response to changes both in
the technology and market for the services (Frimpong, 2004).

In these countries before the turn of 1980- decade, the services was supplied on
monopolistic basis, mostly run either by public administration or a stat-owned
enterprise while few countries had opted for a system of issuing licenses to private
monopolies on a territorial or functional basis (ITU, 1995:7). The restructuring
included privatization or divestiture of national companies either through public share
flotation or to strategic investors and also provided opportunities for telecom market
(Ibid). Beside privatization the restructuring introduced liberalization and
deregulation which sought to remove restrictions on competitive entry to allow many
general public.
 11
The restructuring of the telecom sector in the developed countries began in the
United Nation of America (USA) in the 1960s when a decision by the Federal
Communications Commission confirmed the right of the telephone users to connect
private communications equipment to the AT&A network.

In 1971, Special Common Carrier services enabled MCT interconnect with AT&A in
the provision of long distance telecom services. However, the momentum of
restructuring process increased following the break-up of AT&A in 1984. This was
followed by the United Kingdom, Japan, Australia and New Zealand. In the
developing countries however, restructuring in the telecom industry emerged as a
general policy issue admist the development crises and worsening financial
performance of most economies of the developing countries in the early 1980s.

2.5 Performance of the Telecommunication Sector prior to the Restructuring

Policy

The Telecommunication sector reforms started between the 1993 /4 (ISSER, 2003).
This was carried out in response to the general economic shock which faced the
country’s economy in the late 1970s and early 1980. This economic shock greatly
affected the performance of the Ghana post and telecommunication corporation
(P&T).The economy therefore embarked on the Economic Recovery Program (ERP)
in 1983 to stabilize the economy. The program however did not have any major
impact on (P&T) and necessitated the reforms in the telecommunication sector.

As at 1992 the general performance of (P&T) was very poor and this reflected in
diverse forms like low and stagnant penetration rate, poor quality of services for those
who had access to phones and higher tariffs for those who had the international direct
dial. The rate of access to phones in homes was estimated at 3 phones per 1,000
inhabitants and its distribution was skewed in favour of urban dwellers. It was on
records that around that same time demand for telephone services were estimated to
exceed supply by 150,000 lines thus three times the existing number of lines (Ibid).

According to the International Telecommunications Unit (ITU, 1992), over 80% of all
phone lines were in urban areas while estimated phone lines in Accra in 1990 were
 12
about 53.6% of the total lines in the country. This was a clear indication that P&T’s
failure to expand could neither be attributed to lack of demand for their services.

In the area of finance, the world Bank and other multilateral donors made available
US$173 for investment in the telecommunication in 1988.This project was
implemented three and half years late due to the tied-aid investment that the sector
received over the period resulting in P&T having switches from six different
manufactures contributing to long repair times and high maintenance cost (Haggartt et
al ,2002) consequently the poor management and inefficiency resulting partly from
tied-aid investment in the sector prevented P&T from expanding its network. It is also
important to note that at this same period, four regulatory bodies were regulating the
activities of P&T prior to the sector’s reform programs. These were the Ministry of
Transport and communication (MOTC), Ministry of Finance (MOF), Ghana
Frequency Regulation and Control Board (GFRCB) and the P&T itself.

According to (Haggarty et al, 2002) those multiple oversight agencies slowed

procurement and procedures and tariff adjustment and also reduced accountability and
transparency in decision making. This multi –institutional regulations could be a
contributing factor to the inefficiency and poor management of P&T.

2.6 The restructuring of the telecommunication sector

The restructuring of the telecom sector in Ghana began in the early 1990s when
Ghana Government liberalized the sector to allow private participation to compliment
the activities of the P&T. It also liberalized the telecommunication market for the sale
and installation of telecom terminal equipments such as handsets, fax machines on
consumers’ premises. It also allowed the private sector’s participation in the wiring of
the premises of subscribers. This was to enable the P&T to concentrate on its
activities of providing telecom services Ghana deregulated its telecommunications
sector in 1994 when the Government announced a five-year comprehensive
restructuring of the industry known as the "Accelerated Development Program 1994-
2000 (ADP 2000). The programme had its policy objectives of achieving the
following:
 13
 Improve public access in rural and urban areas, through the provision of
payphone facilities (public and private);
 Expand the coverage of mobile services;
 Promote Ghanaian ownership and control of telecommunications companies;
and
 Retain an overall public regulatory control of the sector through the creation of
a single agency: the National Communications Authority (NCA).

The ADP adopted the following strategies to achieve the above-stated policy
objectives:
 The authorisation of two national network operators: Ghana Telecom and a
new independent operator;
 Support of new financing: arrangements which promote investment in new
telecommunications infrastructure throughout the country; and
 Privatisation of Ghana Telecom through the sale of a strategic stake to an
international operating company combined with measures to broaden share
ownership in Ghana.

In pursuit of the objectives a number of strategies such as creating a competitive

duopoly, liberalization of value added services and establishment of regulatory bodies
for the sector.

In 1996, P&T was split into the Ghana postal Services (Ghana Post) and Ghana
Telecom (GT) as separate companies. This was to enable the telecommunications
division to function as a commercially viable entity. On June 16, 1995, GT was
incorporated as a successor to the telecommunications division of the then P&T. On
20th February 1997, Ghana Telecom was officially privatized through the sale of 30 %
shares to G-Com Ltd, a consortium led by Telecom Malaysia Berhard. As a second
network operator Western Telesystems (Westel) limited was licensed. The second
operator was to have similar rights and obligations as GT. Both companies were
granted exclusivity rights for a five-year period in voice telephony. This was to allow
them some leverage to recoup some of their investment, and also to expand the
 14
network. A licence was also issued to Capital Telecom Limited a private indigenous
telecomm company as a third fixed line operator to provide rural telephony to some
villages and towns in the southern part of Ghana (Ghana Telecom, 2008).

As a result of the policy changes three cellular phone operators (Millicom Ghana
Limited, Kasapa Telecom and Scancom Ghana Limited) entered the
telecommunication market. Millicom Ghana which re-branded its product name
Mobitel to Buzz and now tiGo was the first cellular phone operators in the country. It
is a subsidiary of Millicom International, UK/Luxembourg. It started it’s operations in
1991 and uses the ETAC system with over 22000 subscribers and a market share
above 70 per cent of the total market as at 1998 (Addy-Nayo). The company has
commenced the installation of a countrywide network by commissioning a new
satellite in Kumasi and organizing smaller projects in Tamale and other regional
capitals. Currently the company has a is ranked the second GSM provider with a
subscriber base of 2,668,316 (GNA, 2009).

In 1993 CellTell owned by Kludjeson International, started its operation in Ghana

using the AMPS technology with coverage in Accra and Tema. The company is
currently operating under a brand name Kasapa with a total subscriber base of
386,991(GNA, January2009). Scancom Ghana Limited started operation in 1996 and
was the first to introduce the GSM technology in the country. It used the product
name spacefone which was later changed to Areeba and now MTN. A publication
released by the Ghana News Agency (GNA) dated on August 2008 indicated that out
of a total of 10,242,916 mobile phone subscribers in the country, MTN has 5,539065
which represent 52 per cent of the market share. Onetouch is the cellular arm of
Ghana Telecom. It began its operation in October 2000 providing a nationwide
cellular service. The company had the notion of attracting 98000 subscribers across
the country using the GSM technology. It also planed to introduce the CDMA system
into the network and change its remaining analog exchange to digital.

In February 2002, the Government of Ghana abrogated the Management Contract

with G-Com Ltd., and subsequently assigned Telenor Management Partner (TMP) in
July 2002 to develop a Business Plan for GT covering the period 2003 – 2007. On
 15
acceptance of the Business Plan, the Government of Ghana entered into a
Management contract agreement with TMP in February 2003 to implement the
proposals in the Business Plan.  TMP run the affairs of Ghana Telecom until
December 2006 when the Government of Ghana decided to end the relationship.

In October 2006, government announced a decision to privatize Ghana Telecom. It

was to divest about 66.7 per cent of its shares in the company, to raise further capital,
and improve on the performance of the company. Negotiations therefore began with
Vodafone International Plc, the world’s leading mobile telecommunications group.
After several weeks of deliberations, an agreement was reached and the deal was
signed on July 3, 2008. The Sale and Purchase Agreement (SPA) was then forwarded
to Parliament for ratification.  On the 14th of August, 2008 after a number heated
debates both on the floor of Parliament and in the media the deal
was approved for Government to offload 70% of its shares in Ghana Telecom to
Vodafone for $900 million. Vodafone International Plc now owns 70% of Ghana
Telecom.

The company is now known as GT/Vodafone with a total subscriber base of 3, 869,
91 ranking third in the telecommunication industry (GNA,2009). Other newly
telecommunication operators in the country are Globacom and Zain which have not
recorded GSM subscriber yet. Meanwhile Zain has actually wiled out an ambitious
strategy to capture 15 million subscribers around the globe (GNA, 2009).

2.6.1 Regulatory Bodies of the Telecommunication Sector

a) Ministry Of Communication
The Ministry of Communications was created out of the former Ministry of Transport
and Communications in response to local and global developments in Information
Technology industry. The purpose is to enable government develop policies that will
help integrate information technologies into the activities of the society and also
harness the full potential for effective development. The ministry of communication
was established in 2005 with the mission to facilitate the development of reliable and
cost effective worldclass communication infrastructure and services, driven by
 16
appropriate technological innovation accessible by all cities to enhance the promotion
of economic competitiveness in knowledge based environment. The ministry is
established by the executive instrument six of July 2003. Ministry of communication
is responsible for the development of policies related and functions of organizations
like Ghana Telecom Company Limited, National Communication Authority, Ghana
Meteorology Agency, Ghana Post Company Limited and others.

In order to facilitate partial investment funding to companies and entrepreneurs

willing to implement eligible projects in the under-serviced areas, the Ghana
Investment Fund for Telecommunications (GIFTEL) was established by the Ministry
of Communications. The management of the fund is by a joint government and
private sector enterprise. The management Board consists of members of the
government, National Communications Authority and representatives of contributing
telecommunications industry companies.

b) The National Communications Authority

As the telecommunication sector experienced privatization and liberalization, there

was the need to establish a regulatory body to over see the activities of the sector. In
December 1996, the NCA Act (Act 524) was passed. The Act assigns to the National
Communications Authority a general objective of regulating the communication
sector. The national communications Authority was established by an Act of
parliament to regulate communication wires, cables, radio, television, satellite and
similar means of technology for the orderly development operation of efficient
communications services in Ghana. The National Communications Authority derives
its mandate from
o The National Communications Authority Act 1996 (Act 524);
o The National Communications Regulations 2003(L.I 1719); and
o The National Communications Policy of 2006.

The Authority has the mission to regulate the telecommunications industry by setting
and enforcing high standards of competence and performance to enable it contribute
significantly and fairly to the nation’s prosperity through the provision of efficient and
completive services. Among the objectives of the NCA are to ensure that
 17
communications systems operators achieve the highest level of efficiency in the
provision of communication services and responsive to customer and community
needs. Also the authority seeks to promote research into the development of
technologies and use of new techniques by providers of communication services and
to develop adequate human resource in collaboration with such other government
agencies as the Authority considers appropriate. Other objectives of NCA are the
promotion of fair competition among the players, protection of operators and
consumers from unfair conduct from other operators with respect to quality of
services and payment of tariffs, and protection of consumer’s interest.

In pursuit of these objectives the Act confers on the NCA the functions of granting
licenses for the operation of communications systems, assigning allocating and
regulating the use of frequencies, providing tariffs rules and guideline and advising on
policy formulation and development strategies to the Ministry of Communication. In
addition, the NCA is empowered by the Act to inspect the operators, issue fines and
revoke licenses for non compliance with the standards and ensure that operators
comply with agreement on interconnectivity tariffs setting and information delivery to
the NCA (Haggarty et al 2002; Frempong, 2002).

The Act empowers the Authority to generate funds by requiring fixed percentage of
the turn over of fixed mobile phone operators. The Authority collects a further 1% of
operators turn over for Ghana Investment Fund for Telecommunication (GIFTEL).

c) Postal and Courier Service Regulatory Commission (PCSRC)

The ministry of communication in pursuance of the postal sector reforms and the
objective to create a more liberalized and competiveness postal and courier service
environment, promoted the establishment of the postal and courier service regulatory
commission. The postal and courier services regulatory commission Act 2003(Act
469) established the commission as a regulatory body to license and regulate the
operation of postal and Courier services in Ghana. The commission became
operational in September 2004. The mission of the (PCSRC) is to provide regulatory
oversight that promotes socio-economic development through the provision of
efficient, competitive and quality postal and courier services for consumers.
 18
2.7 Services Provided by the Telecommunication Industry

The telecommunications industry offers a verity of services to the nations. These

services include:

Mobile cellular services: this refers to the use of portable telephone subscribing to and
automatic public mobile telephone devises that provides access to the public switched
telephone network using a cellular technology.

Payphone services
Ghana adopted the payphone as a toll to achieve universal access. This was to be
achieved through increased access to payphone both in rural and urban areas.

Internet services
In 1993 Ghana had full Internet connectivity. This achievement was brought about by
co-operation among several organisations, including Network Computer Systems
(NCS), Pipex International, the Ministry of Transport and Communication of Ghana,
Ghana Telecom, and British Telecom (Addy-Nayo, 2000).

The initial method of connection was by dial-up IP to Pipex performed periodically,

using a DEC station 5000 model 25 with Morningstar PPP software. Currently the
interne cafe is being used to increase public access to the internet services. It is
estimated that about over 150 internet cafes in the country and around 90 percent of
the number is located in Accra.

2.8 Impact of the Telecommunication Industry on National Development

The growth in information and communication technology (ICT) has real implications
for economic growth; this is evident in both developed and developing countries. The
telecommunication sector is an important component of the entire ICT sector which
has gained greater impact on the world’s economy. The ITU estimates that
telecommunication service revenue shave more than doubled, from US$ 517 to US$
1,216 billion, between 1994 and 2004. The International Telecommunications Union
has classified the effect of telecommunication on the economy into direct and indirect
 19
impacts. However the extent of direct impact of the sector depends on the share and
proportional growth in the economy.

According to the union’s report (2006) the direct impact is seen in terms of the
revenues and employment generated by the industry as well as investment on
telecommunications goods where these goods are produced domestically and used
locally or exported. The telecommunication services provide the platform for
economic growth. Today companies and institutions like banks, hospitals, educational
institutions and others rely on telephone, fax, telex and other electronic forms of
communications.

Access to telecommunication is critical to the development of all aspects of the

nation's economy including manufacturing, banking, education, agriculture, trade and
commerce and good governance. Telecommunication is seen as an indispensable tool
in a thriving market since it brings buyers and sellers together. Telecommunication
also facilitates the flow of information which is essential in making a market based
system work. It works as a feedback cycle between suppliers and their customers.
This system of information flow becomes important for international trade where
suppliers and customers are geographically separated.

As recognized by the Millennium Development Goals (MDG) the provision of health

services are critical elements in a country’s development. With telecommunication it
is possible for surgeons in one part of the country to consult with other specialist
while performing operations and such operation can also be monitored by other
surgeon in any part of the country. This reduces the time and cost a nation would
incur to hire those expatriates or send people from training to deliver the same service
(Zimulinda Celestine –Rwanda Development Gateway, 2000).

The telecommunication technologies allows specialist to share skills, knowledge and

experience without necessarily coming physically together. For education,
telecommunication technology has spurred the growth of distance leaning which gives
millions of people who lack the time or resources to attend college locally or overseas
the chance to pursue education qualifications at their own pace. It has also allowed
educational institutions to run courses concurrently or deliver lectures simultaneously
 20
to different groups of students located far away from the point of delivery. In
agriculture, easier and faster access to price information assists farmers and rural
based traders in their businesses.

Telecommunication can also deliver better access to information on improved seeds,

weather forecasting, pest control and other agricultural related services. E-government
is another area where the telecommunication is providing useful contribution to social
development of a country. Also facilitates the processes of the public sector.
Government processes have the potential to be made effective through
telecommunication services. This is seen in government’s ability to provide security
for its citizens, protect its borders and more efficiently handle civil emergencies and
national disasters. It also enables citizens to gain greater awareness of government
programs and activities.

Communicating tools such as internet are increasingly critical to nation's economic

success and personal advancement. The internet serves many functions including
community electronic market place, information sources, and employment potential
for job seekers, research centers, discussion forum and entertainment centers.
Through internet people crate new business or facilitate the delivery of basic services
such as health care and education. Today, almost all nations are online and it is
estimated that there are over 600million internet users worldwide at the beginning of
2004 (Celestin, 2006).

The growth of the internet creates opportunity for new high speed data networks, new
multimedia applications, information sharing among users and convergence of
technologies. Also the development of teleconferencing and multi-media capabilities
of telecommunications systems makes it possible to combine audio and video
facilities which have contributed tremendously to health care delivery and distance
learning.

2.9 Prospects and Challenges of the Telecommunication Industry

The telecom industry is capital intensive and is an industry characterized by rapid

technological changes. It therefore, requires continuous investments to keep abreast
 21
with the developments in the sector. Technology has assumed a new dimension in the
telecommunications industry.

Rapid technology changes and diffusion have led to shorter life span of technologies.
Around the late 1940s, the life span of technology was estimated to be between 30 -40
years. Currently the life span of technology scarcely last between 30-40 weeks
(Centron and Davies, 2001). Consequently rapid changes in technology have
drastically reduced the period of produces and design marketing cycle.

Now the introductions of new technologies are generating competitions which

dislodge the old and inferior ones and disputes products of the old technology. There
is the need for telecom operators to upgrade their equipment to keep pace with the
technological development (Frimpong, 2004). A study conducted by Frimpong in
2004 also indicated that poor infrastructural support especially in the case of
electricity has been a major challenge for the industry. The power supply in the
country suffers from intermittent cut which affects operational cost and quality of
services provided.

2.10 Postal Services in Ghana- A Historical Perspective

The separation of the postal and telecommunication in Ghana occurred as a result of a

global trend to address the inefficiencies in the postal sector. The sector was seen not
to be reliable and responsive to market needs even though it was recognized to
represent a significant proportion of Gross Domestic Product (GDP) and also employs
a large proportion of Ghanaians. In view of the sector’s inability to respond to market
needs the World Bank’s Private Sector Department (PSD) introduced a world wide
postal sector reform particularly in developing countries (Ghana Post, 2000). The
prerequisite for these concepts rest on the separation of the postal sector form telecom
sector in countries where they were single entities.

The telecom division was restructured, modernized and it’s facilities expanded under
multilateral funding. This trend of affairs posed a challenge as to whether Ghana post
could stand on it’s owns without support form the government. The Ghana postal
service corporation was established as a separate entity by Act 505 of parliament in
 22
1995 (Ghana Post, 2000). The government has converted Ghana post into a limited
liability company among other state owned enterprises following the enactment and
implementation of the statutory corporations Act 461, 1993. The basic services
provided include counter services, mail traffic, mail transmission and private letter
boxes.

2.11 Services Provided by the Postal Industry

a) Mail traffic
The core activities of the postal business involve mail acceptance and delivery.
Mail traffic is a generic term that is used to describe some services usually
provided at the counter. This includes universal services (letters, post cards
and printed matter), EMS and parcels.

i) The Expedited Mail Services (EMS)

Ghana commenced the provision of the EMS 1990 with the intension of providing the
fastest postal service by physical means. The EMS is said to be the quickest possible
means of transporting urgent document from one location to another. The country has
direct link with over 150 international postal organizations and operates in about 155
sales outlets in Ghana (Ghana Post, 2005).

ii) Universal services

The Ghana post has been charged with the responsibility of the collection and safe
delivery of all letters to almost anywhere in the world. The company categorizes the
letter postal services into airmail, aerogramme, registered letters, printed matter,
postal cards, and small pockets, articles for the blind and economy air or surface air
lifted.

b) Agency services
These are services particularly provided on behave of organization, individuals or
groups.
i) Sale of passport forms
The company sells application of passport and allied forms are sold at the counter on
behalves of the Ministry of Foreign Affairs. Other agency services include such
 23
payment of bills and school fees. This service usually attracts some level of
commission.

ii) Collection of school fees

The company also sells various forms on behave of most tertiary institutions country wide
as wells as the payment of school fees. This also attracts some level of
commission for the company.

iii) Collection of bill

The company also renders some services to some utility companies like the Electricity
Company of Ghana and the Ghana Water Company .this offers the general public
the opportunity to pay their bills at any nearby post office. This is done to ease the
heckles that the consumers go through in paying their bills at the agency’s office.
Other services under this category include the collections of television license fees
and several others.

c) Financial services
The company offer financial services for both foreign and domestic customers.
These services include the western union money transfer, instant money
transfer, money order and postal order. Some of these services have been
detailed below.
i) Western union money transfer
The western union money transfer is a financial service provided by the Ghana
post as a sub agent for Agricultural Development Bank (ADB).

ii) Instant money transfer (IMT)

The instant money transfer is the domestic financial service provided by the
company to its clients. This service is provided in partner with Sky
Consult.

iii) Postal order

The postal order service of the Ghana post is similar to the money order
service. This is printed in wide variety of denominations and is ideal
for all kinds of mail order purchases. The company has however
 24
experienced some challenges as far as the provision of this service is
concern. For instance the company had the problem of fictitious postal
order payment. Also millions of cedis of the company were used to pay
for fraudulent postal orders. Apart from these, there was a dwindling
of public confidence in this particular service which led to low
patronage. The concerns of the client were that the fake postal orders
in the system led to the genuine ones being unnecessarily scrutinized at
the office of payment and this subsequently led to delay in payment.
Some were also of the view that since it was not the issuing office that
pays the postal orders the fake postal order in the system will
eventually dry up our finances leading to the corporation being unable
to honor the genuine postal order.

iv) Money order

This is a financial instrument that is easily converted into cash by the payee.
The marketing dictionary also defines it as a negotiable instrument
issued by a bank or post office for a specified amount of money.
Money order provides a fast, safe and convenient means of transferring
small sums of money. The money order is often used by people who do
not have checking account. Since the instrument is exchangeable for
cash on demand, they are a generally accepted means of payment.
Ghana post, is said to be the most convenient means of sending money
across the country.

2.12 Performance of the Postal Industry

The Ghana Post Limited has made considerable strides in its operations over the past
years. This performance could be seen in its finances as well as its normal operations.
The company’s financial position has been improving since the separation from
Ghana telecom in 1996. It recorded a revenue increase of ¢19.3 billion in 1996 to
¢37.6 billion in 2000 showing an overall increase of about 94%. In 2007, the
company made a Profit before Tax of GH¢247, 780.00 representing an overwhelming
763,628% over the 2006 figure of GH¢1,644,184 (¢16,441,840,000). Expenditure
also increased steadily from ¢18.9 billion in 1996 to¢32.9 billion showing an overall
 25
increase of 73.8 % (Annual Report and Accounts, 2007). According to the 2007
Annual Report and Accounts of Ghana Post, the impressive result was partly due to
increase in rates and charges.

Table 2.1: Financial Performance of Ghana Post Company Limited (1996-2006)

Year Revenue (¢) Expenditure(¢) Profit(¢)
1996 19,371,000.00 18,974,000.00 397,000.00
1997 24,544,000.00 22,982,000.00 1,562,000.00
1998 26,354,000.00 24,584,000.00 1,770,000.00
1999 32,329,000.00 29,208,000.00 3,121,000.00
2000 37,667,000.00 32,984,000.00 4,683,000.00
2001 62,649,423.00 60,760,471.00 1,888,952.00
2002 89,084,026.00 87,217,235.00 1,866,791.00
2003 103,446,475.00 98,234,056.00 5,212,419.00
2004 122,403,941.00 122,152,932.00 251,009.00
2005 139,722,611.00 148,016,887.00 (8,294,276.00 )
2006 146,502,100.00 166,613,182.00 -(20,111,082.00 )
Source: Ghana Post Company Corporate Plan, 2001-2005

Figure 2.1: Financial performance of Ghana Post

A relationship between revenue,

expenditure and profit
200,000,000.00

150,000,000.00
Amount in million

Revenue (
100,000,000.00 Expenditure
Profit
50,000,000.00

0.00
1 2 3 4 5 6 7 8 9 10 11
-50,000,000.00
Year(1996-2006)

Source: Ghana Post Company corporate plan, 2001-2005

2.12.1 Financial Performance of Ghana Post Company

 26
These profits before tax indicate how successful the Company is able to generating
profit. It also gives adequate information about the financial performance of the
company. The table below shows the profit before tax of the company between 2001
and 2006.

Table 2.2: Financial Performance of Ghana Post Company

Years Profit Before Tax (¢)
2001 2,198,246.00
2002 4,430,017.00
2003 5,089,901.00
2004 2,018,211.00
2005 - 3,347,708.00
2006 - 16,441,845.00
Source: Ghana Post Company Corporate Plan, 2001-2005

Figure 2.2: Financial Performance of Ghana Post Company (Profit before Tax)

profit before tax

10000000
5000000
amount in million

0
1 2 3 4 5 6 Years
-5000000 Profit Before Tax (¢)
-10000000
-15000000
-20000000
years

Source: Ghana Post Company Corporate Plan, 2001-2005

2.12.2 Working capital

According to a study conducted in 2008 on the company’s working capital indicated

that the working capital performance of the company was not very impressive. This is
because the company recorded negatives values between 2001 and 2006. The negative
values indicates a high creditor payable days. The same study noted that the company
is experiencing serious financial crises because most to the customers were not
 27
meeting the debt period which results in the company’s inability to obtain sufficient
funds for smooth running of the business.

2.12.3 Market

The company’s market is currently faced with intense competition at the market
place. The market has moved from the traditional and courier companies to the
informal private transport operators. The inter-state transport company has taken
substantial share of the mails and parcel market. Also the new banks that are
springing up in the country are also affecting some of the financial services provided
by the company. Ghana commercial bank is currently opening new branches to
expand its local money transfer.

2.12.4 Assets utilization

Return on the company’s assets improved from 49.96 per cent in 2006 to 5.18 per
cent in 2007. This indicates an improvement in the utilization of the company’s
resources. Utilization of the company’s fixed assets in particular improves from GH
¢2.99 in 2006 to GH¢4.23 in 2007.

2.12.5 Contribution of the various services

The company provides several services to its customers of which they generate their
sales. These services include counter services, mail traffic, mail transmission and
private letter boxes. Stamp sales have been generating the highest revenue for the
company over the years. Stamp sales formed 41.6%, 34.9%, and 40.8% of revenue
from 1998, 1999 and 2000. The table and figures below throw more light on the
contribution of the various services to total turnover of operational performance of the
Ghana post.

Table 2.3: Contribution of the various services to the company’s revenue in 2007
 28
Service Contribution to Total Turnover
EMS 4621710.72
Mail Conveyance 0
Letter Box 2695997.92
Agency Service 385142.56
Parcel 1733141.53
Financial Services 1540570.24
Terminal Dues 1540570.24
stamps 6739994.8
Source: Ghana Post Company Corporate Plan, 2001-2005

Figure 2.3: Chart showing the contribution of the various services to the company’s
revenue in 2000

Letter
Box Financial Serv.
Ter- 14% 8%
minal Parcels
Dues 9%
8%

EMS Stamps
24% 35%

Agency Serv.
2%

Source: Ghana Post Company Annual Plan (2007)

2.13 Impact of the Postal Industry on National Development

Postal and courier service facilitate trade, commerce and communication both at home
and abroad and act as an important intermediary in linking business and consumers. It
also provides support for the functioning of the modern market economies. According
to the communications Ministry of Ghana (2006), the postal services has a critical
role to play in promoting social and economic development through the provision of
universal services guarantee to the right to communication. The postal service plays a
significant role in both political and economic developments. It is seen as the
 29
principal infrastructure providing net work and services and functioning of political
and civil society.

2.14 The role of the post in achieving the millennium development goals

The Universal Postal Union (UPU) has a major role to play in the global effort to
promote development for all. Of the eight goals that are being pursue globally. The
UPU has identified three of these goals to be directly related to its operation. These
include eradicating poverty and extreme hunger, achieving universal education and
achieving global partnership.

Eradicating poverty and extreme hunger

With the issue of eradicating poverty and extreme hunger, the postal industry has the
potential employing a number of people. These in no small way help them obtain
incomes to meet their daily needs and that of their families hence contributing
towards achieving the goal of halving extreme poverty and hunger.

Achieve universal education: Throughout the history of the postal service have been
the vehicles for the transmission exchange of written documents. Even in the era of
new forms of communication particularly electronic ones, the postal services play an
important role in the transmission of knowledge and information. In Brazil for
example, the post is the medium through which school books are distributed to
schools. In 2003 the entity delivered over 61 million school books across the country
(WSIS, 2004). The postal network helps to reduce illiteracy in developing countries.
A study conducted by the UPU on the correlation between postal services and literacy
rate in 2003, yielded a positive relation and this determine the potential users of the
postal services. Also in championing universal education, the UPU organizes an
international letter-writing competition in developing countries each year. The 2005
competition for example was organized between 25,000 schools from 56 countries
(WSIS, 2003).

Promote global partnership for development

 30
The UPU has sought to develop new partnership with the private sectors involved in
the postal business and willing to invest in joint communication projects. The union’s
mission and actions are geared towards strengthening the frameworks of cooperation
with organizations strongly involved in United Nations action to implement the
millennium development goals. Currently the UPU has signed a memorandum of
understanding with United Nations Development Programe (UNDP) on the
membership of junior professional officer program. Through this programe the UPU
is seeking to strengthen its presence in the field in those countries with the greatest
need particularly through development projects.

2.15 The case of Malaysia

2. 15. 1 Telecommunication in Malaysia

Before 1946, the post the telegraph department was responsible for providing all
telecommunication services in Malaysia. The postal services were segregated with the
formation of the telecommunications department in Peninsular Malaysia in 1946. This
department was subsequently merged in 1968 with the telecommunications
department in Sabah and Sarawak to form the department of telecommunications
Malaysia (Jabatan Telekomunikasi Malaysia (JTM) (CMIS, 2002). In 1987, the
operation of Malaysia’s telecommunication services was transferred from JTM to
Syarikat Telekom Malaysia Barhad which became a public company listed in 1990. It
assumed the present name Telekom Malaysia Berhad. In 1990, the government
retained a majority share holding in the company. This was to ensure that company’s
operational decisions are consistent with government policies.

Telekom Malaysia introduced mobile service in 1985. Since then the government has
granted a number of license to private sector telecommunication operators in an effort
to develop the country’s telecommunication industry and infrastructure. Liberalization
of the telecommunication industry in Malaysia has contributed to increased growth in
demand for telecommunication services. The number of telephones per 100
inhabitants has increased significantly since 1990. However telephony penetration
rate for fixed line telephony increased from 17.8 per 100 inhabitants in 1996 to an
estimated19.8 per 100 inhabitants as at December 2001(Global mobile newsletter,
 31
2002). Compared to other Asian countries Malaysia has a relatively high level of
services penetration but records a relatively low services penetration when compared
to developed countries like Hongkong and Singapore. Currently there are seven
licensed domestic network operators in Malaysia.

2.15.2 Postal services in Malaysia

Postal service in Malaysia began in 1800 with the establishment of postal service first
in the strait settlement (Singapore, Penang and Malacca). Letters were conveyed
through dispatch riders or special messengers. Also fees were collected and receipts
issued instead of postal stamps. The system changed when the Indian introduced
postage stamps which were inaugurated in 1901. Until 1991, the government
corporatized the state owned Jabatan Perkhidmatan to Post Malaysia. The company
was the medium of transmission of letters newspapers and business documents. The
postal service evoluted into a multiple service provider where it began venture into
parcel delivery, registrations insurance services transactions of money (postal and
money order) and investment funds (post office bank). Also the company also
undertakes numerous services on behalf of the government. Other services include the
collection of electricity bills, television license and payment of pensions and others. In
1992, PosMalaysia Berhad granted several businesses the mandate to operate in the
country. This resulted in a challenge of growing competition in the industry. In an
attempt to curtail this problem, the company sought to streamlining its operations by
segregation of the business into four main strategic units namely mail services,
express services, counter services and logistics service.

2.16. The case of Kenya

2.16.1 Telecommunication in Kenya

The telecommunication of Kenya as the case in most African countries was

previously dominated by state monopoly. The situation however changed with the
promulgation of the telecommunication law in 1998 which became operational in July
1999 replacing the law previously governing the Kenya post and telecommunications
company. The law recognized the institution as an independent organization to
 32
regulate all aspects of the telecommunication sector including licensing, price
regulation, and ensuring compliance with general service obligation among others,
(BMI-Tech knowledge, and 2001). The law also provides for the establishment of the
National Communications Secretariat to provide advisory role to the state on policies
in the telecommunication sector. Following the liberalization of the
telecommunication sector in 1991, the number of private telecommunication
providers has increased considerably. For example the country recorded over 350
enterprises in the sale and installation of telephone hardware. Also available statistics
indicates that there over 60 internet operators in the country as at June 2002. The
development of communication infrastructure has been relatively fast with telephone
capacity increase from 112861 lines in 1998 to 400,000 in the year 2000. Likely the
average annual growth rate of telecommunication rose from 16.6% in 1981 to 24.3%
in 1990. Telephone penetration is estimated to be 0.1% in remote areas as compared
to 27.7% in the city of Nairobi (Telecom indicators in Kenya, 2001).

2.16.2 Postal services in Kenya

Between 1948 and 1971, postal services in Kenya, Tanzania and Uganda was
provided by the East African Post Telecommunications Corporation the dissolution of
the first East African Communications since that time forces Kenya to establish its
own monopoly communications company. The government policies in the mid 1990s
which were supported by the International Monetary Fund (IMF) and the World Bank
recommended the separation of postal services from telecommunications operations.
An IMF loan also depended on privatization of the Kenya Postal Telecommunication
Corporation (KPTC) was suspended in July 1997 over reported concerns of
government corruption. In 1999 the corporation was spited in three entities namely,
 Telkom Kenya responsible for the provision of telecommunication services
 Postal Corporation of Kenya (PCK) to offer postal services
 Communications commission of Kenya (CCK) as a national regulatory
authority.

The separation of the PCK from the telecommunications industry was a big challenge
for the postal entity. The corporation was also faced with the challenge when it was
 33
informed by the government to operate without subsidies and also bear the
responsibility of providing universal service and also make profit. It was during this
same period that the telecommunications industry was liberalized where customers
were presented with a wide rage of alternatives. The new technologies had further
expanded the competitive field by presenting super-speed and cost effective
alternatives.

With support from the government PCK installed a very small aperture terminal (V-
SAT) infrastructure. This provides internet access services in over 400 outlets across
country. Furthermore the cooperation is moving into utilizing the v-sat infrastructure
fully by developing and introducing more e-based products, including electronic
money transfer, hybrid mail and e-commerce. In addition PCK is now rolling out the
automation programme for counter services delivery. The project after completion
will facilitate one-stop shop operations over the counters of major offices. A highly
skilled IT team has been deployed to install and manage the back office operations
and management systems which are being computerized. Apart from the
infrastructural development, PCK has also established strong marketing units
(strategy and Business Development) who are responsible to develop product and
services based on customer demand.

2.17 Summary of Lessons Learnt from the Review

Lessons learnt from the review can be summarized as follows:

 The postal service industry is seen not be reliable and responsive to the market
needs even though it was recognized to represent a significant proportion of
the GDP ands also plays a large proportion of Ghanaians.
 The World Bank introduced a Private sector Department (PSD) to help the
postal industry respond to the market needs.
 The working capital of Ghana Post between 2001 and 2006 recorded negative
values which indicate a higher creditor payable days.
 Restructuring of the Telecom sector brought about improved public access in
rural and urban areas through the provision of pay phone facilities and
expanded coverage of mobile services.
 34
 Telecommunication sector revenue doubled from US$517 billion to US$1216
billion between 1994 and 2004.

2.18 The Conceptual Framework of the Research

From the conceptual framework it could be seen that the three principal causes of the
reduction in the operations of the postal industry is caused by the liberalization of the
telecom industry by the government. This action by the government has encouraged
several telecom operators to operate in the country. One other critical area affecting
the postal industry is the inter city transport services operators. Due to the delays in
sending items through the post, customers finds to more convenient to send their
items through the inter city transport which gets to the destination the same day. The
services provided by other courier services providers like Feedex and DHL has also
affected the postal industry.

The liberalization which increased the number of telecom operators has subsequently
brought high competition in the telecom sector which has compelled providers to
offer quality and cost effective services to their customers. Before the reform of the
telecom industry, four regulatory bodies were regulating the activities of GP&T.
These were Ministry of Transport and Communications (MOTC), Ministry of Finance
(MOF), Regulation Ghana Frequency and Control Board (GFRCB), and GP&T itself.
According to Haggarty et al (2002), these multiple oversight agencies slowed
procurement procedures and tariff adjustments, and reduced accountability and
transparency in decision-making. Thus, the inefficiency and poor management of
GP&T could be partly attributed to these multi -institutional regulations. The
functions of these bodies have been ceded to the National Communications Authority
(NCA) as the sole regulator of the sector.
 35
Figure 2.4: The Conceptual Framework of the Research

Customer High competition Smooth

satisfaction in the telecom operation
industry by telecom
industry

Increase in Regulatory policy

Provision of
telecom operators
quality and cost
effective services

Liberalization
Courier services Improved
of the telecom
provided by the services by
industry
transport sector other courier
agencies
(Feedex and
DHL)

Reduce
productivity of
postal industry

Source: Field study, March 2009

 CHAPTER THREE
ANALYSIS AND PRESENTATION OF DATA

3.1 Introduction

This chapter focuses on the analysis and presentation of the data collected from the
field. The analysis seeks to present from the respondents’ point of view the impact of
telecommunication services on the services of the postal industry. The analysis of the
data has been analyzed and synthesized in line with the objectives of the study.
However, in order to provide the setting where the primary data was gathered, the
chapter will begin with a brief profile of the Kumasi Metropolis.

3.2 Profile of Study Area

3.2.1 Location and Size

Kumasi is located in the transitional forest zone and is about 270 km north of the
national capital, Accra. It is between latitude 6.35°N- 6.40°N and longitude 1.30°W-
1.35°W, an elevation which ranges between 250-300 meters above sea level with an
area of about 254 square kilometers. The unique centrality of the city as a travestying
point from all parts of the country makes it a special place for many to migrate to.

3.2.2 Population Size and Growth Rate

The Kumasi Metropolis is the most populous district in the Ashanti Region. During
the 2000 population and housing census, it recorded a figure of 1,170,270. It has been
projected to have a population of 1,625,180 in the 2006 based on a growth rate of 5.4
per cent per annum and accounts for just under a third (32.4%) of the region’s
population. Kumasi has attracted such large population partly because it is the
regional capital and also the most commercialized centre in the region. Other reasons
include the centrality of Kumasi as a nodal city with major arterial routes linking it to
other parts of the country.

36
 37
Figure 3.1: Administrative Map of Ghana

Key
Area of Study

Lake Volta

Regional
Boundaries

Source: newafrica.com/maps

3.3 Telecommunication Infrastructure in the Metropolis

The major networks in the city are the fixed and the mobile networks. Currently
Ghana Telecom is the sole provider of fixed line network for the city. The mobile
networks are provided by Millicom Ghana Limited, Cell tell Communications group,
Ghana Telecom and Multinational Telecommunications Network (MTN Ghana).
 38
Unlike the fixed line network which is characterized with some sought of monopoly,
access to mobile network in the city is relatively easier.

3.4 Postal Services in Kumasi Metropolis

Since the major objective of the study is to investigate into the utilization of postal
services as a result of increased mobile telecommunication services, it is very
important to identify the services provided by the post offices in the Metropolis. In
line with the core mission of Ghana Post to provide prompt, efficient, reliable and
secure communication and financial services, the following services are therefore
provided by the post offices in the Metropolis.

3.4.1 Mail traffic

The core activities of the postal business involve mail acceptance and delivery. Mail
traffic is a generic term that is used to describe some services usually provided at the
counter. This includes universal services (letters, post cards and printed matter), EMS
and parcels.

i) The Expedited Mail Services (EMS)

Ghana commenced the provision of the EMS 1990 with the intension of providing the
fastest postal service by physical means. The EMS is said to be the quickest possible
means of transporting urgent document from one location to another. The country has
direct link with over 150 international postal organizations and operates in about 155
sales outlets in Ghana (Ghana Post, 2005).

ii) Universal services

The Ghana post has been charged with the responsibility of the collection and safe
delivery of all letters to almost anywhere in the world. The company categorizes the
letter postal services into airmail, aerogramme, registered letters, printed matter,
postal cards, and small pockets, articles for the blind and economy air or surface air
lifted.
 39
3.4.1 Agency services

These are services particularly provided on behave of organization, individuals or

groups.

i. Sale of passport forms

The company sells application of passport and allied forms are sold at the counter on
behalves of the Ministry of Foreign Affairs. Other agency services include such
payment of bills and school fees. This service usually attracts some level of
commission.

ii. collection of school fees

The company also sells various forms on behave of most tertiary institutions country
wide as wells as the payment of school fees. This also attracts some level of
commission for the company.

iii. Collection of bills

The company also renders some services to some utility companies like the Electricity
opportunity to pay their bills at any nearby post office. This is done to ease the
heckles that the consumers go through in paying their bills at the agency’s office.
Other services under this category include the collections of television license fees
and several others.

3.4.2 Financial Services

The company offer financial services for both foreign and domestic customers. These
services include the western union money transfer, instant money transfer, money
order and postal order. Some of these services have been detailed below.

i. Western union money transfer

The western union money transfer is a financial service provided by the Ghana post as
a sub agent for Agricultural Development Bank (ADB).
 40
ii. Instant money transfer (IMT)
The instant money transfer is the domestic financial service provided by the company
to its clients. This service is provided in partner with Sky Consult.

iii. Postal order

The postal order service of the Ghana post is similar to the money order service. This
is printed in wide variety of denominations and is ideal for all kinds of mail order
purchases. The company has however experienced some challenges as far as the
provision of this service is concern. For instance the company had the problem of
fictitious postal order payment. Also millions of cedis of the company were used to
pay for fraudulent postal orders. Apart from these, there was a dwindling of public
confidence in this particular service which led to low patronage. The concerns of the
client were that the fake postal orders in the system led to the genuine ones being
unnecessarily scrutinized at the office of payment and this subsequently led to delay
in payment. Some were also of the view that since it was not the issuing office that
pays the postal orders, the fake postal order in the system will eventually dry up our
finances leading to the corporation being unable to honor the genuine postal order.

iv. Money order

This is a financial instrument that is easily converted into cash by the payee. The
marketing dictionary also defines it as a negotiable instrument issued by a bank or
post office for a specified amount of money. Money order provides a fast, safe and
convenient means of transferring small sums of money. The money order is often
used by people who do not have checking account. Since the instrument is
exchangeable for cash on demand, they are a generally accepted means of payment.
Ghana post, is said to be the most convenient means of sending money across the
country.

3.5 Mobile Telecommunication Services provided by operators in the Metropolis

The mobile telecommunication operators offer a variety of services to their customers.

These services can be broadly grouped into the following:
 41
Mobile cellular services: This refers to the use of portable telephone subscribing to
and automatic public mobile telephone devises that provides access to the public
switched telephone network using a cellular technology.
i. Payphone services: Ghana adopted the payphone as a toll to achieve universal
access. This was to be achieved through increased access to payphone both in
rural and urban areas
ii. Internet services

3.6. Overview of respondents

In addition to institutional survey conducted with ministry of communication and

Ghana post, one hundred respondents were randomly selected from two strata (formal
and informal sectors) and interviewed for the purposes of achieving the objectives of
the study. Fifty-three of the respondents representing 53 per cent were males while the
remaining 47 per cent were females. 57 per cent of the respondents fall within the age
bracket of 16-30, with 42 per cent falling between the age bracket of 31-60 and just
about 1 per cent is in the age group above 60 years. This implies that majority of the
respondents happened to be youth. The sex of the respondents was taken into
consideration in order to ensure that the outcome of the study reflect the views and
concerns of both sexes. Table 3.1 shows the sex and age distribution of respondents.

Table 3.1: Age and sex distribution of respondents

Sex Number of respondents Percent
Male 53 53
Female 47 47
Total 100 100
Source: Field survey, March, 2009.

3.6.1 Educational level of respondents

The survey also considered the educational levels of the respondents since this helps
inform their decision on the kind of communication service to patronize. For instant,
people with good writing skills will obviously not have difficulties in writing letters.
The survey captured an appreciable proportion of the respondents being literates with
 42
57 per cent obtaining the tertiary level of education. Those who had attained JHS and
SHS recorded 15 percent respectively. The table below shows the educational levels
of the respondents.

Table 3.2: Educational levels of respondents

Educational level Number of Percent
respondents
Tertiary 67 67
SHS/ tech/vocational 15 15
JHS 15 15
Primary 2 2
Informal 1 1
Total 100 100
Source: Field Survey, March, 2009.

3.6.2 Economic Characteristics of respondents

3.6.2.1 Employment status

Out of the one hundred respondents that were interviewed 82 percent were employed
with 16 percent being students and 2 per cent unemployed. Of the 82 per cent
employed 45 per cent were engaged in the formal sector employment of which 19 per
cent were working in the public institutions and 26 per cent in the private institutions.
Within the informal sector, service, commerce, agric and industry recorded 17,11,6
and 3 per cent respectively.

Figure 3.2: Employment Status of respondents

employment status of respondents

2% Formal
16%
informal
45%
Student
unemployed
37%

Source: Field survey, March, 2009.

 43
3.6.2.2 Income levels of respondents

The study sought to find out about the income levels of the respondents since it
affects the degree of utilization of communication services. It was realized that almost
all those employed within the formal sector earn a monthly salary above GH¢100.
Within the informal sector, nineteen (23) respondents representing 28.4 per cent earn
below GH¢10 in a month whereas 28 per cent of those in the informal sector earn
between GH ¢11-20 and the remaining 22 per cent earn between GH ¢21-50.

Table 3.3: Income levels of respondents

Monthly income Number Per cent
(GH¢)
Below 10 23 28.4
Between 11-20 12 14.6
Between 21-50 10 12
Above GH100 37 45
Total 82 100
Source: Field survey, March, 2009.

3.7 Amount spent on communication

The survey results showed that 50 per cent of the respondents in the informal sector
spend below GH ¢10 on communication in a month. Again 28 per cent of the
respondents in the informal sector spend between GH¢11- 20 and the rest indicated
spending between GH¢21-40 on communication per month.

On the other hand the number twenty-two (22) of those working in the formal sector
representing 48 percent spends between GH¢21- 40 on communication in a month
and 18 of the respondents representing 40 percent of those in the formal sector spends
below GH¢10 on communication with the remaining spending between GH¢11-20
on communication. From the above it is obvious that the monthly income and the
sector of the respondents have a direct linkage with the kind of communication
services that they patronize.
 44
3.8 Kind of communication service patronized

It was realized from the survey that all the respondents in the informal sector
patronize the mobile phone services in conveying information. However those in the
formal sector use a combination of the mobile phone, the internet and the postal
services. 27 of the respondents in the formal sector constituting 60 per cent use both
the mobile phone and the postal services while 21 per cent use the mobile phone and
the internet and the remaining use mobile phone only.

The main service patronize by respondents at the post office has to do with settling of
their bills. These include utility bills, paying of school fees and buying of forms to
the tertiary institutions. 59 per cent of the respondents who patronize the postal
services mainly go in for the above mentioned services. Other services patronized at
the post offices includes receiving of letters this constitute 30 per cent of the
respondents. Only three people out of the twenty seven patronize the instant money
transfer (IMT) services.

Table 3.4: Type of service patronized

Type of service Number of Percent
respondents
Payment of bills /fees 16 59
Receive letters 8 30
IMT services 3 11
Total 27 100
Source: Author’s construct, March, 2009

The study also obtained from respondents how easily they access the postal services
since that could affect patronage of the postal facilities. The responds indicated that
84 per cent of those who use the postal services do not travel before accessing the
postal facility. It was also clear from the responses that even those who had to travel
to access the facility do that if that particular service is not available in the minor post
offices. The average distance they traveled was however less than one kilometer. This
implies that when there is the need to travel to access higher postal services
transportation was not a problem to them in an attempt to use the postal service.
 45
3.9 Waiting time

Waiting time is the period a customer spends in a queue at the post office until he or
she is served. The responds from the study showed that 72 per cent of the respondents
spend less than 30 minutes in a queue at the post office before they are served on
attending a postal facility whereas 16 per cent of the respondents spend between 30-
45 minutes in the post office. The study also revealed that about 90 per cent of the
people who use the post office do not go there quite often.

Table 3.5: Waiting time

Waiting time Number of respondents Per cent
Less than 30 minutes 19 72
Between 30/45minutes 4 16
1 hour and over 4 16
Total 27 100
Source: Field study, March 2009

The study also tried to identify the reasons accounting for the use of other
communication services. The respondents who patronized the mobile phones and the
internet justified their choice. All the respondents interviewed explained that they
were using the postal services before they shifted to the mobile phones and internet
services due to certain inefficiencies in the postal services.

Most of these people used to post their letters in the post office but realized that the
letter sometimes takes weeks before it gets to the recipient and even some times they
wonder whether the letters got to their destination or not . In this case customers were
not getting their feedback on time. To solve the problem of delayed feedback they
think using the mobile phone gives them instant feedback on relevant issues. Again
respondents saw the use of the phone to be faster, convenient and more secured. 82
per cent of the respondents were of the view that the use of telecom services is
cheaper as compared to the postal services. The reasons were that considering the
time needed for a letter posted to get to it’s destination before feedback is obtained,
using the telecom services is less expensive. Some also agues that even the current
stamps at the post offices for inland letters are sold for GH 1 and above. This same
amount of credit could be used to contact more than one person.
 46
3.10 Utilization of postal services by people

3.10.1 Utilization of mail traffic (universal service)

Of the hundred respondents that were interviewed 8 per cent from the formal sector
patronize this kind of service. The main service that these respondents patronize was
receiving letters. A staff at the counter in the Adum post office lunched a complain on
the gradual decline in the sales of stamps at the counter these days. To triangulate this
statement the study ascertained from the respondents that the influx of modern
communication technology such as the internet, mobile phones which has enhance
their means of disseminating information. The general public now consider letter
posting as a slow medium of communication rather they prefer the internet and the
mobile phone which is seen to be faster, smoother and more reliable means of
transmitting information.

3.10.2 Utilization of EMS

Eighty three out of the 100 respondents responded on the affirmative with regards to
the utilization of EMS. This represented 83 percent for those who patronize EMS
services whilst those who do not patronize this service constituted 17 per cent of the
total respondents. Of this number, 54 were in the formal sector with the remaining 34
being in the informal sector. The major reason given to be influencing the choice and
utilization of EMS was its reliability and fastness. Respondents also indicated that
though SMS from their mobile phones equally serve the same purpose of sending
information, it was not possible to send parcels, cards, forms and services of ‘hard’
nature hence their continued reliance on EMS for communication and delivery of
information. Compared to letters, most respondents utilizing the EMS said though it is
relatively expensive, it is very reliable in sending urgent information. Hence, it could
be seen that Mobile Telecommunication has not greatly affected the services of EMS
adversely.
 47
3.10.3 Utilization of Money order

Ghana post introduced the instant money transfer in 2005 to the general public as a
means of customers remitting funds to their relations in different parts of the country.
However this service encountered serious drawback due to inappropriate technology
and lack of funds. This made it difficult for the company to pay back the money they
have collected on behalf of their client and as a result it delayed in the payment of
fund customers complained and finally lost confidence in this service and eventually
opted for the bank instead.

In the area of instant money transfer respondents expressed high levels of

disappointments in the manner in which money transferred to them by their relatives
and client were issued to them. Some stated that it took them weeks to receive money
that has been transferred to them. This complex processes that customers go through
made them resort the banks as alternative means of carrying out the same transaction.

3.10.4 Utilization of agency services

The company renders agency services like collection of school fees, utility bills and
the sale of passport forms on behave of its principal clients. Agency service was the
second highest that was patronized by the respondents. About fifty-nine (59) of the
respondents use the agency service to pay school fees, buy passport forms and settle
their utility bills. Although majority of the respondents patronize this service the
company had some internal problem in rendering some of these services which have
eventually been abandoned.

3. 11Contribution of the postal industry to national Development

The grim image of the postal service as a social service provider with its attendant
ineffectiveness and inefficiencies has changed over time. Stakeholders of the post are
beginning to be aware of the new image and the role it is now playing in economic
development. The introduction of substitutes to letters such as e-mail, hybrid mail, e-
commerce etc. the deteriorating quality of the postal service and the lack of customer
satisfaction contributed immensely to the bad image. To date, however, the picture
 48
has improved tremendously with the establishment of market oriented courier
companies. Ghana Post is playing a major role in Ghana’s vision of becoming a
middle income economy by the years 2015. This is manifested in the Economic,
Political and Social roles it plays in the lives of Ghanaians.

Economic
Economic contributions can be seen in areas of Business and Trade, Employment,
Support for Government Organizations and Revenue for Government.
 Business
The expedited mail services which commenced in 1990 to supplement the
universal service, delivers timely and important business mail for firms
especially the banks. Now businesses are currently investing in Ghana due
partly to the company’s ability to transmit business mail on time.
 Employment
The postal business is labour intensive and has to some extent eased the
unemployment pressure on government. The staff strength as at June, 2000
was 2348 with its core postal staff constituting 1425(60.7 percent) and the
remaining 923 forming the supporting staff.
 Revenue for government
In addition to use of its counters in collecting custom duties on imported items
through the post, Ghana post pays dividend to the government annually.

Political
The post office is a communication agency and has helped to facilitate movement of
political materials during and after election. Also, civic education materials are sent
through the post.

Social
The post office has contributed immensely to the social development of Ghana in the
following areas.
 Increase in literacy rates
The urge by illiterates to be able to read and write letters to relatives, friends,
etc, without an intermediary has force many Ghanaians to take advantage of
 49
adult literacy programmes. Literacy rate increased by 49 per cent of the
population in 2000. Also the post office has offered a medium for school
children to correspond with selected pen pals world-wide. This has helped to
improve grammar and writing skills of pre-tertiary.
 Symbols of development
Post offices in communities, towns, villages etc. are one of the yardsticks of
the level of the development of these areas.
 Tourism promotion
The post has served as a medium of exchange of letters between pen friends,
which eventually results in visits to Ghana by these friends. The recent,
African-American summit and pan African Festival of Arts and Culture
(Panafest) are to some extent the result of impression created by pen friends as
regards areas of tourist attraction in Ghana.
 Portrayal of culture
Philately plays an additional role of portraying the Ghanaian culture. Various
issues of commemoratives stamps with flora and fauna and traditional themes
have attracted patronage of tourist from USA, UK, Japan etc. this
demonstrates the extent to which Ghana’s culture is being sold abroad.

3.12 Challenges of the Postal services

Technological innovation is said to be the most critical area which has affected the
operations of Ghana post. The postal market is gradually being eroded with the
advanced technology in the area of telecommunications. Mobile messages and
electronic mails are fast replacing the postage of letters. The activities of other
agencies offering courier services like Federal Express and DHL compete with
services provided by Ghana Post. A survey conducted in 2000 indicated that the
market share of foreign mail of DHL constituted about 30-40 per cent of the entire
courier business in Ghana (Company Cooperate Plan 2000). Apart from these formal
competitors, Ghana post is competing with Inter city STC and other transport and
courier service providers for bulk mail and letter post. Also some agencies like the
electricity company of Ghana and several others have withdrawn their operations
from Ghana post due to inappropriate accounting records which eventually led to
 50
difficulties in the reconciliation of figures between Ghana post and the principal
company. This decision by the business agencies turns to put pressure on Ghana post.
The company introduced the instant money transfer service in 2005. The initial
investment made by the company in this service was so huge that it increased the
operating cost of the company which made the company recorded negative profit in
both 2005 and 2006.

The marketing manager explained that in 2005 and 2006 the company introduced a
service Instant Money Transfer (IMT) which failed. And to support this, the
accountant also said hitherto that 2001 to 2004 had recorded very low operating cost
but in 2005 and 2006 the company’s operation cost was so high that it resulted in the
negative net profit of the company.

Another challenge facing the postal services has to do with mail theft and tampering.
As a company, the security of mail items is very important since customers can sue
the company for the loss of mail items. The Manager at the Adum Branch indicated
that mail theft and tampering was on the ascendency between the periods 2000 to
2004 but has been on the decline recently. He mentioned that for the year 2000 alone
they recorded 20 theft cases at their branch and further said the unfortunate situation
has soiled the image of the company over the years.

In addition, Stamp and Postal order duplication is also a key challenge facing the
postal services industry. The duplicated stamps and postal orders are the genuine
stamps, which are not part of the stock ordered by the company. These are illegally
sold alongside the officially authorized stock hence affecting sales.

Last but not the least challenge facing the postal services since its separation from the
telecommunication industry is the non-viability of post offices. The manager at the
Adum Branch mentioned it was on record that sixty-six (66) out of the three hundred
and twenty seven (327) post offices in the country are not able to break even due to
low patronage of the services.
 CHAPTER FOUR
FINDINGS, RECOMMENDATIONS AND CONCLUSION

4.1 Introduction

This section of the study brings to bear the major findings that were identified by the
researcher from the analysis of both the institutional and household surveys relating to
the nature and impact of telecommunication and postal service industry. These
findings would be of importance to development intervention in the postal industry in
Ghana. The role of the postal industry may be enhanced through the number of
recommendations that have been proposed in this chapter.

4.2 Major Findings

4.2.1 Utilization of Postal services

With regards to the above stated objective, the study investigated how the general
public was patronizing the services of the postal sector and also how management was
fairing with regards to internal operations. The study therefore considered the
utilization of major services provided by the company like Agency service, financial
service, universal service (letter, EMS, parcel and other printed matter). The study
found out that this agency service now recorded the highest revenue of the postal
industry. The major component accounting for the increase in revenue is payment of
school fees and the sale of forms for the various tertiary institutions. Since these
institutions sell their forms at different seasons within the year, the industry is able to
strategize its operations inasmuch as possible to make appreciable revenue for its
growth and survival. Nevertheless the industry has encountered some problems in
providing certain services under this category. For instance the company has
abandoned the provision of services like the collection of electricity bills and
television license fees. This was principally due to the industries ineffective
mechanism of book keeping which made it difficult to reconcile figures of the
company to that of the principal Agency after sales.

51
 52
As regards financial services respondents were not too happy about the manner in
which postal industry operated with the financial service delivery. They were
particularly concerned with the delays in the issue of money that has been transferred
to them by business clients and other relations. Management also acknowledged this
problem and attributed it to the fact that management’s expectation in that service was
very high which compelled them to inject huge sums of fund into this particular
service which eventually failed and consequently accounting partially for the negative
profit before tax of the company in the years 2005 and 2006.

The study also revealed that there was steady decline in the company’s sale of stamps.
This is partly due to the fact that the consumers were no longer posting letters because
they now consider it as a relatively slow means of disseminating information. This
decline is due to the new information and communication technologies which have
further expanded the competitive field of the consumer by presenting super-speed and
cost effective alternatives to the consumer.

4.2.2 Contribution of the postal service industry to national development

The study has established that Postal services industry is playing a major role as far as
national development is concerned. The roles could be categorized under the
economic, political and social.

Under the economic role, it was found out that the postal service industry provides
expedited mail services to banks and on time which has contributed towards
improving productivity in these institutions. The postal industry also tends to offer
significant number of employment to the populace and also contributes to government
revenue generation.

Along political lines, it was established from the survey that, the postal service
industry contributed towards ensuring smooth elections by serving as a transit point
for both election and civic materials. Moreover, the postal industry contributes to
social development by promoting literacy levels. It was realized that post has
provided a medium for school children to communicate with pen pals world-wide. It
 53
also serves as symbols of development, tourism promotion and portrayal of culture
through its commemoratives with flora and fauna.

4.2.3 Challenges faced by the postal services industry

The study identified three key challenges facing the postal services industry. Firstly,
the advent of advance telecommunication such as mobile messages and electronic
mails are fast replacing the postage of letters. This has resulted in the industry
providing very little services. The share of its services is currently facing competition
with other courier service operators like Federal Express and DHL and other informal
competitors like inter city STC and other transport services.

Secondly, with these telecommunication services in place most of the post offices
have become non-viable. It was established that sixty six (66) out of the hundred and
twenty seven post offices do not break even. This resulted in the industry negative
profit.

The third challenge facing the postal industry although not directly related to the
telecommunication services has to with mail theft (tampering) and stamp/ postal
duplication. This results in a significant proportion of the industry’s revenue not
accounted for.

4.3 Recommendations

From the findings emanating from the study, the following recommendations have
been made to improve upon the current trend of affairs:
1. Turning new technologies into business opportunities rather threats
The postal services industry should revamp their services to respond to the
changing market needs of its customers. This can be done effectively by
turning new technologies into business opportunities rather than threats. With
the support of the Government, the postal industry should apply information
communication technology to improve the quality of its current services and
introduce other new products such a hybrid mail combining electronic
transmission and a physical delivery, electronic money transfer, e-commerce
 54
as well as diversified on line services to meet the growing needs of reliable,
affordable and rapid services with a high level of technological added value.
There is the need to also embark on automation programme for counter service
delivery to facilitate one stop shop operations over the country in all major
offices.

Additionally, back office operations and management systems should be

computerized and a highly skilled IT team deployed to install and manage the
systems. All offices in management and operating functions should be
provided with desktops that are networked to boost efficiency and quality of
service.

2. Rolling out internet service access

Even though the internet has become a widely used tool, it has been
established that only two out of five people in the developed world have
access to internet as compared to one out of fifty in the developing world. It is
therefore recommended with the support of the Government, the postal
industry should install a very small Apparture Terminal (V-SAT)
infrastructure as in the case of Kenya to provide a plat form for it to network
all its postal outlets to provide natural opportunity for helping people
accessing the internet.

3. Investing in sustainable marketing campaigns

With the stiff competition that the postal industry is currently facing there is
the need for appropriate and sustained marketing strategies. Since customers
are now aware of the wide range of alternatives available as well as
communication markets that is driven by new technologies, it is recommended
that the postal industry develop a strong marketing unit whose responsibility is
to develop products/services based on customer demands and sensitize
customers on product range and value. There should also be aggressive
campaigns through both the print and electronic media to market the postal
industry.
 55
4. Ensuring security of mails and customer confidence
As traffic on the information highway become heavier, people expect to deal
with a trusted party that will protect the sanctity of their messages and their
right to privacy. The postal industry should enforce regulations on employees’
conduct and legal guarantees to enhance customer confident and trust. The
industry should import the idea of electronic postmarks used by other postal
agencies in other parts of the world which protect the integrity of electronic
data through the use of auditable time stamps, digital signatures and hash
codes. These postmarks allow third parties to verify the authenticity of
electronic content and provide evidence to support non repudiation of
electronic transactions. Moreover with stamp/postal order duplication, it
recommended the following measures should be instituted to safeguard
unauthorised handling of postal order or stamps in questionable or doubtful
quantities: All sheets of stamps must have of serial numbers, security agents
must be present during printing and delivery of stamp/postal order, police
escorts printed stamps/ postal orders to headquarters of Ghana post and
officials of Ghana post should be present during burning of discarded print
outs.

5. Establishing relevant management structure

One of the key factors in prudent business management is the utilization of the
human resource. It is therefore recommended that Ghana post embark on
massive restructuring with a focus on establishment of new management
structures, rationalization of staff and recruitment of professionals into key
positions. As regards, the non-viability of some of the postal offices, it is
strongly recommended that the company put in place the following measures:
Adopting strategies to reduce cost in running of the non-viable offices,
encouraging commissioned agents to provide postal services and reducing
staffing in the non-viable post offices.

4.4 Conclusion

The study focused on the nature of impact of the telecommunication and postal
industry. It been recognized that the development of the future technologically driven
 56
information society cannot be fully achieved without integrating into the process other
forms of communication and information infrastructures such as postal and paper
based information services hence apparently making the future of the postal industry
bright. What is clear is that the post will ignore new technologies at their peril. There
is therefore the need to effectively tap the enormous business opportunities that come
with these technologies. In order to place Ghana’s postal network in the same train as
the telecommunication industry more partnerships need to be forged between postal
administrations and key industry players through the institutions of forums which
provide opportunities to share experiences and sample the latest communication
technologies.

It is believed that when the recommendations the study proposed is taken heed of, will
go a long way to create an enabling environment for a vibrant postal industry. The
result will be a sustainable flow of funds to the industry thus making it possible for
many Ghanaians to be able to enjoy postal services. This will, of course, be a major
step in the country’s bid to promote and accelerate growth and development.
 REFERENCE

Addy-Nayo, Chris (2002): Third Generation Mobile Policy the case of

Ghana.<hpp://www.itu.int/3g> November 2008.

Ahortor, Christian Regobeth Kofi (2003): Regulatory Impact in Ghana, A Paper

Prepared For The Conference In Regulatory Impact Assessment: Strengthening
Regulation Policy To Practice, (ISSER) Ghana

Ameyo, Dan K. (2005): Postal Operators’ Perspective – the experience of the Postal
Corporation of Kenya, Postal Corporation of Kenya a paper presented to The
International Postal Forum And Exhibition – St. Petersburg, Russian Federation

Brown, J .Betty and John E. Claw (1993) :Introduction to Business, Our Business and
The World Economy. United States of America, Glencoe Division of
Macmillan/McGraw –Hill

Consesa, Jonh and Irene Mchomvu (2008): Tanzania: Postal Services 'Suffer
Technology Gap' accessed from AllAfrica.com

Dowuona, Samuel (2009): Telecom in Ghana –A game of multinationals

Frempong Kwasi Godfred (2004): Restructuring of the telecommunication sector in

Ghana: Experiences and policy implications, unpublished thesis Department of
Sociology University Of Ghana Legon Accra, Ghana

Frimpong (2000): Telecommunications reform- Ghana’s experience, university of

Bremen Global mobile news letter (volume 9th November, 27th February, 2002)

Haggarty, Luke, Shirley, Mary M. and Wallsten, Scott. (2002): Telecommunication

Reform in Ghana. World Bank Policy Research Working Paper No. 2983.

Institute of Social Statistical and Economic Research (2003): The State of The
Ghanaian Economy In 2002, ISSER University of Ghana Legon

57
 58
International Telecommunications Union (1996): African Telecommunications
Indicators Geneva, ITU Publication.

Jipguep, Jean (2006): a paper prepared ITU General Conference .

Ministry of Communication (2004) :National Telecommunication Policy, Ghana

Republic of Ghana (1996): The National communications Act –General Regulations
Under The National Communications Act of 1996, Accra.

The Contribution of the universal postal union to the World Summit on the
Information Society (WSIS) Geneva 2003 and Tunis 2005.

Toure Hamadoun (2008):UPU 24th universal postal congress Geneva, Switzerland

30th July 2008.

Universal Postal Union – Contribution to implementation of Millennium

Development Goals.

Zimulinda, Celestine (2000): –Rwanda development Gateway 20th May 2000

 APPENDIXES
Survey instrument for Ghana Post Company Limited
Background of institution
1) When was your institution
established?.........................................................................................
2) Why was your institution
established?..........................................................................................................
3) Under which regulatory framework does your institution operate?
…………………………………………………………………………………
4) What are your major functions?
a)……………………………………………………………………
5) How many branches do you have in the
metropolis?.................................................................
5a) Name some of them
a)…………………………………………………………………
6) How many existed before
1996?................................................................................................
7) Have you opened new branch lately
Yes [ ] No [ ]
7a) If yes how many?...............................................................................................
8) Have you closed down any of your branches?
Yes [ ] No [ ]
8a)If yes what factors caused their closure
9)have you been able to realized all these s
functions?.....................................................................................................................
Contribution to development
10) Does your institution contribute to tax payments?
Yes [ ] No [ ]
10a)If yes which form of taxes do you pay?
11) How much tax do you contribute?.............................................................................
12)what are some of your cooperate social obligations?
What role is your institution playing in achieving the millennium development goals
Effect of mobile telecom on postal services in Ghana
13) What are the services that your institution provides?
a)………………………………………………………………………………………
b)………………………………………………………………
14)Which of the services were introduced from 1996 onwards?
a)………………………………………………………………………………….. b)
…………………………………………………………………….
15)which of these services is highly
patronized?......................................................................................
16) which of the services is least
patronized?............................................................................................
17 how long has it recorded the least
sales?..........................................................................................
18)What do think accounted for the reduction in the sale of that services?
19) Does the mobile telecommunication service providers provide any or similar of
these services?
Yes [ ] No [ ]
19a) If yes which of the services?

59
 60
a)…………………………………………………………………………… b)
………………………………………………………………..
19b) Does it affect your operation in any way?
Yes [ ] No [ ]
19c )If yes
how……………...............................................................................................................
...............
20)What is the relationship between your institution and the providers of
telecommunication services?
Institutional capacity assessment
Personnel
Category of qualification Number Number backlog
personnel required available

21)Have you laid off some of your personnel between 1996 and now?
Yes [ ] No [ ]
21a) If yes how many?.............................................................................
22) What factors accounted for the lay off?
Logistics
Major Number Number Number in Number in reasons
logistics required available good bad
condition condition

Finance
23)What are your main sources of finance?
a…………………………………………………………………………………………
24)Are the funds adequate for your operations?
Yes [ ] No [ ]
25)Do you encounter any challenges in accessing these funds?
Yes [ ] No
25a) If yes, what are these challenges?
Challenges
26) What are some of the challenges you face as postal industry as a result of the
advent of the telecom industry?
26a) what are you doing to address some of these challenges?
27) Any other comments?
 61
Ministry of Communication

Background of institution
1) When was your institution
established?................................................................................
2) Why was your institute established?......................................................................
3) Under which regulatory framework does your institution operate?
……………………………………………………………………………
4) What are your major functions?
a)…………………………………………………………………………
5 in your opinion why was the post and telecommunication corporation separated?
a……………………………………………………………………
6)Have the objective for the separation been achieved?
Yes [ ] No [ ]
7) If no what factors have accounted for the non achievement?
a………………………………………………………………………………
8)what has been the performance of the postal industry since the separation?.
a…………………………………………………………………………………
9) What has accounted for industry’s performance?
10) Are there any plans for the postal industry?
Yes [ ] No [ ]
10a) If yes what are these plans?
a………………………………………………………………………………
11) What challenges do you encounter in managing the postal industry?
a………………………………………………………………………
12) What are you doing to address these challenges?
a……………………………………………………………………………
13) what has been the performance of the telecommunication industry since the
separation?
a………………………………………………………………
14) what are the prospects for the telecom industry
13) Do you have any other comments
 62
Telecommunication industries

Background of institution
1) When was your institution
established?.........................................................................................
2) Why was your institution
established?............................................................................................................
3) Under which regulatory framework does your institution operate?
……………………………………………………………………………
4) What are your major functions?
a)……………………………………………………………………………
5) How many branches do you have in the
metropolis?.................................................................
5a) Name some of them
a)…………………………………………………………………
7) Have you opened new branched lately
Yes [ ] No [ ]
7a) If yes how many?...............................................................................................
8) Have you closed down any of your branches?
Yes [ ] No [ ]
8a)If yes what factors caused their closure
9)Have you been able to realized all these functions?.....................................................

Contribution to development
10) Does your institution contribute to tax payments?
Yes [ ] No [ ]
10a)If yes which form of taxes do you pay?........................................................
11) How much tax do you contribute?.................................................................
12)what are some of your cooperate social obligations?

Effect of mobile telecom on postal services in Ghana

13) What are the services that your institution provides?
a)………………………………………………………………………………………
14)Which of these services is highly
patronized?..............................................................................
15) Which of the services is least
patronized?.......................................................................
16) how long has it recorded the least
sales?.............................................................................
17)What do think accounted for the reduction in the sale of that services?
18) Does the postal industry providers provide any or similar of these services?
Yes [ ] No [ ]
18a) If yes which of the services?
a)……………………………………………………………………………
18b) Does it affect your operation in any way?
Yes [ ] No [ ]
18c )If yes how……………............................................................................................
19) What is the relationship between your institution and the postal industry?
 63
Institutional capacity assessment
Personnel
Category of qualification Number Number backlog
personnel required available

20)Have you laid off some of your personnel between 1996 and now?
Yes [ ] No [ ]
20a) If yes how many?.............................................................................
21) What factors accounted for the lay off?

Logistics
Major Number Number Number in Number in reasons
logistics required available good bad
condition condition

Finance
23)What are your main sources of finance?
a……………………………………………………………………………………

24) Are the funds adequate for your operations?

Yes [ ] No [ ]
25) Do you encounter any challenges in accessing these funds?
Yes [ ] No
25a) If yes, what are these challenges?

Challenges
26) What are some of the challenges you face as postal industry with regards to the
telecom industry?
a)………………………………………………………………………………………
26a) what are you doing to address some of these challenges?
 64

Questionnaire for users of the postal and telecom services

Background of respondents
1) Name…………………………………………………………………………
2) Sex Male [ ] Female [ ]
3) Age: ………………………..
4) Employment status: (a) Employed [ ]( b) Unemployed [ ] (c) Student[ ]
5) If which sector are you employed?
a)Service [ ] b) Commerce[ ] c) Industry [ ] d) Agric [ ] informal [ ]
6) What are your main sources of income?
a)wage/salary[ ] b) profit form business[ ] c) remittances[ ] d) others ……………….
7) How much do you earn in a month?
a)less than GH10 [ ] b) GH 10-50[ ] c) GH 60-100[ ] d) 110+[ ]
8) How much do you spend on communication in a month?
a) Less than GH10 [ ] b) GH11-20 c) GH21-40 d) GH50 +
9) Educational level atained: (a) Non formal [ ] (b) Primary [ ] (c) JHS [ ] (d)
SHS [ ] Tertiary [ ]
10) What means of telecommunication do you patronize?
a) Mobile Phone [ ] B) Fixed Line [ ] C) Internet [ ] D) Fax [ ]
E) Others Specify…………………………..
11) What is your reason for the above choice?
a)…………………………………………………………………………………….
12) Do you patronize postal service?
Yes [ ] No [ ]
13) What kind of services do you often patronize when you visit the post office?
a) Post letters [ ] b) send money [ ](c) pay for bills [ ] (d) receive letters [ ] e)
receive money (f)posting and receiving [ ]
14) How often do you visit the post office?
a) Daily [ ] b) weekly [ ] c) every forth week [ ] d) monthly [ ] (e) not quite
often[ ]
15) What is your opinion about the kind of services provided?
(a) Weak [ ] (b) partly unsatisfied [ ] partly satisfied [ ] strongly satisfied
16) How do you rate the customer relation you receive from the post office?
(a) Weak [ ] (b) partly unsatisfied [ ] partly satisfied [ ] strongly satisfied
17) Why do you patronize the postal service?
a) convenient [ ] b) affordable [ ]c) easily accessible [ ]
Accessibility
18)How long do you spend when you visit the post office?
a) Within 30min [ ] b)between 30and 45min [ ] c) 1hr and above[ ]
19) Do you travel before accessing a post office?
Yes [ ] No [ ]
20) If yes what is the average time spent
a)less than 15min [ ] b) 30min [ ] c) 45min [ ]
21) Do you use the mobile telecommunication services?
Yes [ ] No [ ]
22)What kind of services do you enjoy from the mobile telecom providers?
 65
(a)Calls [ ] ( b)Short Messaging Service[ ](d)internet access [ ](e) teleconferencing[
] e) f)others specify……………………………………………
23) How often do you use the service of the telecom providers
a) Daily [ ] b) weekly [ ] c) every forth week [ ] d) monthly [ ] (e) not quite
often[ ]
24) What is your view on services provided by your telecom operators?
(a) Weak [ ] (b) partly unsatisfied [ ] partly satisfied [ ] strongly satisfied
25) Has these services impacted on some postal services you were patronizing?
Yes [ ] No [ ]
26a) If yes name the service and the corresponding postal service affected?
a)………………………………………………………………………………
27) Do you see the use of telecom to be more expensive than using postal service?
Yes[ ] No[ ]
27a)If yes why …………………………………………………………………….
27b) If no why ……………………………………………………………………

28) How has the following services of mobile telecom affected your patronage of the
following services provided by the postal services?
postal Letter EMS Payment Money Money
posting of order transfer
telecom bills/fees
SMS
internet
Calls

a)positive b)negative c)neutral

29) Do you think the use of mobile telecommunication has an impact on postal
service
Yes [ ] No [ ]
30a) If yes what are they…
a)……………………………………………………………………………………
30b) If no, why
a)…………………………………………………………………………………
31) How often do you use the internet?
a) Daily [ ] b) weekly [ ] c) every forth week [ ] d) monthly [ ] (e) not quite
often[ ]
32) What kind of information or service do you look for?
a) e-mail communication for personal use[ ] (b) e-mail communication for
professional use[ ] c)information on education[ ] d )information on agric [ ] e)
information for my business[ ]
33)How proficient are you in the use of the internet and telecommunication as a
means of conveying information?
a)Poor [ ] b)less proficient [ ] c)proficient [ ] d highly proficient[ ]
34 if you are asked to choose between telecommunication and the postal services as a
means of conveying information which one would you prefer?
a)postal service b)telecom service.