Govt to address MTN’s telecom market “monopoly”

The government has directed the National Communications Authority (NCA) to enforce provisions of the Electronic Communications Act, 2008 (Act 775) and the National Telecommunications Policy (NTP) to address disparities in market and revenue share in the telecommunications sector.

Following the directive, the NCA will start immediately the implementation of specific policies to ensure a level-playing field for all network operators within the industry, with emphasis on maximising consumer welfare.

The Minister of Communications, Mrs Ursula Owusu-Ekuful, who disclosed this in Accra, said the latest reports received from the industry showed a worrying trend that demanded immediate action to correct the growing market imbalance and the creation of a near-monopoly in the industry.

MTN for instance currently enjoys almost 75 percent of the telecommunications market share.

Policy

Under the National Telecommunications Policy (NTP) any operator with 40 percent or more market share in voice, data, short messaging service (SMS), and value-added services such as mobile money is considered a significant market power (SMP).

The NCA, in accordance with that, has declared SCANCOM Limited (MTN) as an SMP, and with that designation, the regulator is required to take corrective measures under the law to facilitate more market competition, ensure proper pricing for consumers and facilitate the overall growth of the telecommunications industry.

Policy

Under the National Telecommunications Policy (NTP) any operator with 40 percent or more market share in voice, data, short messaging service (SMS), and value-added services such as mobile money is considered a significant market power (SMP).

The NCA, in accordance with that, has declared SCANCOM Limited (MTN) as an SMP, and with that designation, the regulator is required to take corrective measures under the law to facilitate more market competition, ensure proper pricing for consumers and facilitate the overall growth of the telecommunications industry.

It added that the measures were to kick in immediately, and that the NCA was expected to work with all network operators which must cooperate to ensure it was done painlessly.

“We have come a long way in a very dynamic industry which has seen ancestors of all the current operators being the dominant player at one stage. Ghana Telecom, Mobitel, now MTN. Measures taken then to open up the market to ensure fairer competition, though unpleasant to the dominant player then, eventually inured to the benefit of the consumer and resulted in the vibrant telecom sector of today . This will also have the same result over time. It is corrective and not punitive,” the Minister’s statement added.

Source: Graphic