The National Communications Authority (NCA) of Ghana has addressed public concerns regarding high internet data prices and its recent classification of MTN Ghana as a Significant Market Power (SMP). This response comes amidst growing discontent among consumers, especially expressed on social media platforms.
Acknowledgment of Public Grievances
Public Outcry on Social Media
The NCA has acknowledged the public grievances related to overpriced internet data, which have been widely discussed on social media. Understanding the consumer concerns, the NCA emphasized its commitment to ensuring fair competition and protecting consumer interests.
Official Statement from the NCA
In an official release, the NCA clarified that the classification of MTN as an SMP is in line with its mandate to uphold fair competition. The authority stated, “It is important to note that the SMP classification is not intended to punish or stifle MTN’s operations but rather to ensure a level playing field in the market and protect consumer choice.”
Understanding Significant Market Power (SMP)
Definition and Criteria
Significant Market Power (SMP) indicates a company’s dominant position in a given market. An operator is presumed to have SMP if it holds more than a certain percentage of the telecommunications market within its operational area. This classification is crucial for maintaining competitive balance and preventing monopolistic practices.
Draft Guidelines for SMPs
The NCA has published draft guidelines outlining the responsibilities and restrictions for SMPs. According to these guidelines, SMPs are prohibited from offering the lowest prices for any service and cannot exceed the prices of other operators by more than 10%. Additionally, SMPs must seek NCA approval before changing tariffs. Non-SMPs, while allowed to adjust prices without prior approval, must obtain NCA authorization if their proposed price exceeds that of the SMP.
Promoting Competition and Innovation
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Measures to Ensure Fair Competition
The NCA explained that the introduction of measures such as tariff parity and technology neutrality aims to promote competition and encourage innovation. These measures are designed to enable other operators to compete effectively, offer sustainable pricing, and invest in improving service quality.
Assurance of Affordable Mobile Internet Data
Citing a report, the NCA noted that Ghana ranks third in Africa for the cheapest mobile internet data pricing and second in the West African region. The authority reassured the public of its ongoing efforts to ensure reliable and affordable internet access for all consumers.
MTN’s Position and Market Dynamics
MTN Nigeria’s Tariff Adjustments
In a related development, another subsidiary of MTN Group, MTN Nigeria, announced in May 2024 its partnership with regulators to obtain approval for raising tariffs. This initiative aims to enhance profitability amidst forex losses. The MTN Nigeria board has already approved these initiatives, which include completing tariff hikes to recover $101 million in forex losses.
Subscriber Growth Despite Challenges
Despite facing a service revenue decline in Q1 2024, MTN Group reported a 1% increase in subscribers, reaching 287.6 million. This growth occurred despite stringent subscriber registration regulations in markets such as Ghana and Nigeria. The increase in subscribers highlights MTN’s resilience and continued appeal to consumers even amid regulatory challenges.
Conclusion
The NCA’s response to public concerns regarding internet data prices and the classification of MTN as an SMP underscores its commitment to fostering a competitive telecommunications market in Ghana. By implementing measures to ensure fair pricing and promote innovation, the NCA aims to create a more equitable environment for all operators and enhance the overall consumer experience. As MTN navigates these regulatory changes, its ability to adapt and maintain subscriber growth will be crucial in sustaining its market position.
