Ghana’s communication regulator will implement policies to curb MTN’s dominance in the country. Ministry of communication has directed the National Communication Authority (NCA) to implement regulations that will level competition. The regulations will address the disparities in market share and revenue among telecom operators, preventing monopolistic behavior.
“While the telecommunications policy aims to encourage the growth of the telecommunications sector, it also seeks to create a level playing field and ensure a regulatory regime that ultimately benefits the consumer.”
Minister for Communications, Mrs. Ursula Owusu-Ekuful.
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MTN has the largest market share in the country, raking 70% share of mobile data subscriptions for Q1 2020. Moreover, the giant commanded up to 75% of the countries telecommunication market share in Q4 2019. According to the Daily Mail, this trend threatens competition and, therefore, makes it unprofitable for smaller players in the sector.
Ghanian Telecommunication policy regulations term any operator with over 40% share in voice, internet, or mobile money as a Significant Market Power (SMPs). Consequently, the law requires NCA to take measures against SMPs to promote competition.
The regulations will reduce MTN’s dominance by setting price ceilings and ceilings for data, voice, SMS, and mobile money. Additionally, they require operators, including MTN, to submit the pricing for approval before implementation. The provisions also expect SMPs to tilt call prices in favor of the disadvantaged Telecom operators.
Minister Ursula believes that the measures, though unpleasant to the market leader, will benefit both the customer and the industry.
However, MTN said in a statement that they have “not received the formal notification from the regulator and await the notification to assess the details.”
