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The National Communications Authority (NCA) of Ghana has provided clarification on data pricing concerns and the significant market power (SMP) classification of MTN. The NCA emphasized that the SMP classification is not meant to punish or stifle MTN’s operations but rather to ensure fair competition and protect consumer choice.
Understanding Significant Market Power (SMP)
SMP refers to a company’s dominant position in a specific market. An operator is presumed to have SMP if it holds more than a certain percentage of the telecommunications market in its area of operation. The NCA’s draft guidelines state that 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. In contrast, non-SMP operators can adjust prices without prior approval, provided their proposed prices do not exceed those of the SMP.
Promoting Competition and Innovation
The NCA explained that measures such as tariff parity and technology neutrality are being introduced to foster competition and encourage innovation. “These measures enable other operators to compete effectively, offer sustainable pricing, and invest in improving service quality,” the NCA stated.
Citing a report, the NCA noted that Ghana is ranked third in Africa for the cheapest mobile internet data pricing and second in the West African region. The authority assured the public of its commitment to ensuring reliable internet access across the country.
MTN Group’s Position and Actions
In May 2024, MTN Nigeria, a subsidiary of MTN Group, announced its partnership with regulators to seek approval for tariff increases and other initiatives aimed at improving profitability. The MTN Nigeria board has already approved these initiatives. Previously, the company had implemented tariff hikes to recover $101 million in foreign exchange losses.
Despite a decline in service revenue in Q1 2024, MTN Group reported a 1% increase in subscribers, reaching 287.6 million, even with stringent subscriber registration regulations in markets like Ghana and Nigeria.
The NCA’s efforts to address data pricing and ensure fair competition are part of a broader strategy to maintain Ghana’s position as a leader in affordable mobile internet pricing while fostering a competitive and innovative telecommunications market.
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