Ghana’s NCA (National Communications Authority) clarifies data pricing concerns and MTN’s SMP position. In a release, the NCA acknowledged the public grievances especially expressed on social media, and stated it understands consumers’ concerns.
“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.”
Significant market power (SMP) represents a company’s dominant position in a given market, where an operator is presumed to have SMP if it holds more than a certain percentage of the telecommunications market in the area in which it operates.
A draft guideline published by the regulator noted that it would prohibit SMPs from offering the lowest prices for any service. Additionally, they cannot provide prices exceeding those of other operators by over 10% and must seek NCA approval before changing tariffs.
Non-SMPs can adjust prices without prior approval but require NCA authorization if their proposed price exceeds that of the SMP.
NCA explanation
The NCA further explained that introducing measures, including tariff parity and technology neutrality, will promote competition and encourage innovation.
“These measures enable other operators to compete effectively, offer sustainable pricing, and invest in improving service quality,” it stated.
Citing a report, the watchdog noted that Ghana is ranked 3rd in Africa as the country with the cheapest mobile internet data pricing, and 2nd in the West African region. Moreover, it assured the public that it would work to ensure reliable internet access.
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Another subsidiary of MTN Group, MTN Nigeria, in May 2024, said it is partnering with regulators to get approval to raise tariffs among other initiatives to gain profitability. However, the group noted that the MTN Nigeria board has approved those initiatives. Before that, it was already completing tariff hikes to gain back $101 million in forex losses.
However, despite a service revenue decline in Q1 2024, MTN Group reported that its subscribers increased by 1% to 287.6 million, even with the subscriber registration regulations in some of its markets like Ghana and Nigeria.
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