International Journal of Emerging Science and Engineering (IJESE) ISSN: 2319–6378, Volume-2, Issue-5, March 2014 62 Published By: Blue Eyes Intelligence Engineering & Sciences Publication Pvt. Ltd. Abstract- Telecom operators in Ghana are likely to face large infrastructure investment needs over the coming decade because of rising demand for mobile phone and other related services due to population pressure and an expanding economy. This raises questions about the traditional model of single ownership of physical telecom infrastructures and network layers. The situation has led to infrastructure sharing (IS) among Ghana’s major telecom infrastructure owners. However, IS has not been very successful as a cost effective solution to the ever increasing need for infrastructure capital. This is probably because current owners of infrastructure typically employ the “fixed” pricing model in implementing IS. This research investigated the applicability of Dynamic Pricing (DP) to Ghana’s Telecom Infrastructure Market. DP involves price discrimination over the time dimension and is likely to be a more useful pricing strategy compared to fixed pricing. The study adopted mainly exploratory and descriptive analysis as well as a combination of qualitative and quantitative data collection approaches. Purposive sampling and simple random techniques were used in selection and administering of questionnaires to employees and subscribers of Telecom infrastructure companies from some selected regions in Ghana. The findings of the research identified challenges facing the current “fixed” pricing model, which include surplus inventory, inability to attract new customers and insecurity. The research also confirmed that the market is made up of a variety of customers. They include customers that buy: at an initial full price, when discounted price is sufficiently low, when price is anticipated to remain the same for the entire period and when prices can be bargained. The study also finds that “dynamic Pricing” can boost revenues and it is also the most likely effective strategy for Ghana’s Telecom Infrastructure market. Index Terms— Dynamic pricing, Infrastructure sharing, fixed pricing, price discrimination, Ghana telecom sector. I. INTRODUCTION Well-functioning infrastructure networks are the backbone of every telecommunication network operator. For wide coverage and strong competitive advantage, network companies must expand their coverage equipment or infrastructure to every possible geographical area. Telecommunication operators in Ghana are facing a large infrastructure investment cost from year to year for expansion and growth. According to a report by [1] on infrastructure development and financing. This raises questions about the traditional model of single ownership of Physical infrastructures and network layers. Manuscript received March 20, 2014. Alexander Osei-Owusu, Graduate School, Ghana Technology University, Accra, Ghana. Stephen E. Armah, Business Administration, Ashesi University College, Brekuso Ghana. A possible solution is to consider how individual organizations can come together to raise sizeable capital to confront the ever increasing need for infrastructure capital, so that such facilities can be shared with much reduced cost. The ability of the operators to share such physical and network equipment is what we termed Infrastructure Sharing (IS). Ghana’s Ministry of communication encouraged operators to share towers in a National Communication policy document [2]. Infrastructure sharing, however, has not lived up to its billing as a cost effective solution to the ever increasing demand for infrastructure capital, and this is most likely result of the pricing model being applied by owners of infrastructure. Infrastructure owners today in Ghana have endorsed a fixed pricing model with fixed minimum space (i.e. Occupancy on tower infrastructure) that can be allocated to the requesting party (i.e. Network operator). However different requesting parties with different valuations and expectation typically do not require the same type of pricing strategy and in fact price differentiation or price discrimination may be a better option. [3] as well as [3] asserts that, the term “price differentiation” exists when sales of identical goods or services are transacted at different prices from the same provider. Under price discrimination, the seller is able to charge different prices to different types of consumers based on each client’s ability to pay in the same time frame [4] In comparison, under dynamic pricing, the seller charges different prices across time because the characteristics of the same consumers may change over time or the seller may encourage different customers with different abilities to pay over time [5]. In this sense, dynamic pricing can be considered a type of price discrimination in the time dimension. The fixed pricing model applied in Ghana’s infrastructure market has rather compounded the problem associated with the high cost of infrastructure capital that confronts both new entrants and the existing network providers or Telecom operators in establishing or expanding their network coverage. In the fixed cost model, prices are sticky. [6] as well as [6] assert that, the term “sticky price” refers to fixed physical cost that firms must pay whenever they change a price. However, such an approach is often criticized on the grounds that it is hard to identify significant fixed physical costs of changing prices for most products. A viable pricing model that can make provisions for all sorts of customers and providers’ mutual benefit is the dynamic pricing model; however such a model is typically applicable in specific market environments. According to [5], dynamic pricing is a form of business strategy that adjusts the product or service price in a Investigating the Applicability of Dynamic Pricing to Ghana’s Telecom Infrastructure Market Alexander Osei-Owusu, Stephen E Armah