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Ensuring Competition in the Telecommunication Business Environment in Ghana: How Relevant is the Enactment of an Anti-Trust Law?

Ensuring Competition in the Telecommunication Business Environment in Ghana: How Relevant is the Enactment of an Anti-Trust Law?
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Author(s): Stephen E. Armah (Ashesi University College, Ghana)
Copyright: 2014
Pages: 15
Source title: Impacts of the Knowledge Society on Economic and Social Growth in Africa
Source Author(s)/Editor(s): Lloyd G. Adu Amoah (Ashesi University, Ghana & Strategy3, Ghana)
DOI: 10.4018/978-1-4666-5844-8.ch005

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Abstract

This chapter investigates the possibility of anti-competitive behavior in the Ghana telecommunication sector and determines exploratorily if there is a need for the enactment of anti-trust laws to protect social welfare. The chapter first evaluates the available relevant literature on the subject, assesses the current situation, evaluates the current market structure, and identifies how market power is affecting consumer welfare. Reviews of available literature and secondary data were conducted to establish the relevant conditions for the applicability of such a law. Next, primary data was collected from stakeholders to solicit views on the impact of market structure on pricing and the need for anti-trust laws. Results suggest the Ghana telecommunication sector is open to “cartelization,” which can result in different forms of price collusion despite the existence of a state regulatory body (The National Communications Authority, NCA). The study highlights the Ghanaian consumers' susceptibility to unfair marketing practices due to the possible absence of pertinent anti-trust legislation.

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