The National Communications Authority of Ghana (NCA) dealt with internet and mobile data pricing as well as MTN Ghana being declared a Significant Market Power (SMP).
The Authority’s response came after what it called a “public outcry” over high internet data pricing in the country and MTN Ghana’s status as an SMP, with the regulator saying it understands the public’s concerns.
“As the communications regulator, the NCA has a responsibility to support fair competition and protect the interests of consumers in the telecommunications industry,” the NCA said in a statement.
The NCA therefore said the classification of MTN as an SMP aligns with its mission and fulfills its mandate.
“It is important to note that the SMP classification is not intended to penalize or stifle MTN’s operations, but rather to ensure a level playing field in the market and protect consumer choice,” the NCA explained.
Public outcry
According to local media, Ghanaians have called for the dissolution of the NCA board due to high data costs and unreliable data provision, which some attribute to MTN’s declaration as SMP in 2020.
In efforts to level the playing field, in July 2023 the NCA introduced technology neutrality to address non-SMP concerns in the telecommunications industry.
“By implementing measures such as asymmetric interconnection rates, tariff parity and technological neutrality, the NCA aims to promote competition, encourage innovation and protect the interests of consumers,” the Authority explained.
According to the NCA, these measures allow other operators to compete effectively, offer sustainable prices and invest in improving the quality of services.
To dispel public concerns, the NCA cited a 2023 report published by cable.co.uk, which was reviewed by the NCA as part of a regular Billing Monitoring exercise.
The NCA claimed that the report ranked Ghana as the third cheapest for mobile internet data and the second cheapest in the West African region.
“The NCA wishes to reassure consumers that it will continue to work closely with all relevant stakeholders to ensure reliable internet access,” the Authority concluded.
MTN Ghana weighs in
According to the Ghana website NewsGhana.comThe Chief Corporate Services and Sustainability Officer of MTN Ghana, Adwoa Wiafe, addressed the company’s SMP statement to Parliament’s Select Committee on Communications.
“The NCA has provided the rationale behind our current data pricing structure, emphasizing comparative affordability within the sub-region. As a designated significant market player, our pricing strategy is subject to specific regulatory mandates intended to enhance market competitiveness” , he told the committee.
The NCA said MTN’s classification as an SMP aligns with its mission and fulfills its mandate.
(Source: MTN Group).
Back in 2020, the NCA classified MTN as a “Dominant/Significant Market Power” and implemented a set of policies to reduce its dominance in the telecommunications market.
The carrier initially tried to take the matter to court, but later withdrew the court case, choosing to focus on finding an amicable resolution with the regulator.
According to market research company statistics Omdiaa sister company of Connecting Africa, MTN Ghana is the most dominant operator, with an estimated 27.9 million mobile users at the end of the second quarter of 2024.
The second largest mobile operator in the country, Telecel Group had 8.9 million mobile users around the same period.
Meanwhile, AT Ghana had 5.1 million users, leaving Glo Mobile with about 344,340 users around the same period.
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*Top image source: Image by ASphotofamily on Freepik.
— Matshepo Sehloho, Associate Editor, Connecting Africa
