In a major move to promote Ghana’s digital infrastructure, the government, in partnership with seven industry players, has established the Next-Gen Infrastructure Company (NGIC) to roll out a common 5G network across the country.
This consortium includes Ascend Digital, K-NET, Radisys, Nokia, Tech Mahindra, and two local telcos—AT Ghana and Telecel Ghana. However, an important player was absent from the consortium: MTN Ghana.
MTN was ready to deploy 5G in 2022
MTN Ghana, the leading telecommunications company in the country, had previously expressed its readiness to launch a 5G network in Ghana. It planned a pilot program in 2022, but canceled it because the National Communications Authority (NCA) did not grant the necessary licenses for MTN to proceed.
This situation raises questions about the dynamics of market competition and the strategic considerations of the government in shaping the future of telecommunications in Ghana.
Is the government trying to stop a repeat of the MTN 4G era?
When the NCA auctioned its 4G spectrum in 2017, MTN was the only player to bid and subsequently won the right to roll out 4G to its customers.
It took three years for Telecel (formerly Vodafone) to roll out its own 4G service to its customers and AT Ghana (formerly AT Ghana) has not even launched 4G to date.
So it’s not surprising that the regulator doesn’t want a repeat 5G rollout when MTN seems to be leading the field.
MTN continues to be the dominant player
In 2020, the Ministry of Communications and the NCA ranked MTN as a “Significant Market Player” (SMP) due to the company holding a majority share in both the data and voice markets in Ghana. From 2022, MTN has share of more than 65%. both voice and data.
MTN took the Ministry of Transport to court but later withdrew.
Providing a “neutral” field for competition
By forming a consortium that excludes the dominant player, the government can aim to foster a competitive environment that prevents any single entity from monopolizing 5G infrastructure. This strategy could potentially lead to more equitable access to high-speed internet services for all Ghanaians, regardless of their service provider.
Creating a neutral, shared platform like NGIC is seen as critical to providing affordable, high-speed data access to the population.
The decision to set up NGIC is also in line with the government’s policies, which prioritize the use of a neutral infrastructure company to accelerate the deployment of 5G services.
What’s next for MTN Ghana?
The exclusion of MTN Ghana from the 5G consortium appears to be a deliberate policy choice aimed at promoting competition, ensuring market balance and aligning with the broader goals of Ghana’s digital transformation.
With its infrastructure already in place, what next steps will MTN take when its competitors launch 5G services in the next six months? The popular telco has yet to make any public statements about its 5G plan since the government’s announcement.
Whether this government game to balance competition will work in the long run is yet to be seen. But for now, MTN will continue to be the dominant force in Ghana’s telecommunications space and we don’t think the launch of 5G will change the balance of power.
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