MTN declared as the Significant Market Power (SMP) in Ghana
According to the NCA, under the National Telecommunications Policy (NTP), any operator with 40% or more market share in voice, data, SMS and value-added services like Mobile Money, is considered a SMP.
The Ministry of Communications, in a statement released in Accra to announce the regulator’s decision, noted that Industry Statistics released from the Statistical Bulletin – Quarter 4, 2019 of the National Communications Authority (NCA) indicate that MTN has almost 75% of telecommunications market share, a trend which has persisted over the past 3 years and had continued into the first quarter of 2020.
Unfortunately, while the Government, through the Ministry of Communications, acknowledges the investments MTN has made in their operations over the years and how their investments have enhanced their operations, it expressed worry over its growing dominance.
“These statistics while impressive and showing growth within the telecommunications and financial sectors clearly shows an uncompetitive and unprofitable environment for less dominant players in these industries,” the statement added.
With the designation of SMP, the statement explained further that 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.