NCA Defends Declaration Of MTN As Significant Market Power

The National Communication Authority (NCA) has emphasized that the declaration of MTN as a Significant Market Power (SMP) in Ghana’s telecommunication industry is not a punishment or a means to stifle its operations.

Rather, the Authority says it is to ensure a level playing field in the market and protect consumer choice.

In a statement on Tuesday, it explained, “When an operator attains a significant market share and dominance, it has the potential to impact competition negatively, resulting in higher prices, lower quality of service, and reduced innovation.

“The SMP designation allows the NCA to impose certain regulations and measures on MTN to prevent abuse of its market power and ensure fair competition.”

The Authority compelled MTN Ghana to suspend the Data Zone Bundle offer which gave customers a day validity bundle at discounted rates at the point of purchase in April this year due to what it described as a violation of SMP regulations.

It said the offer violated the SMP regulation, that is, it was low-priced.

The product was reintroduced in May at reviewed prices.

Previously, customers could get 1GB of data bundle at GHC1.50 for a day; 2GB with GHC2 for a day and; 5GB bundle with GHC3 for a day but with the reviewed prices, customers only get 323 MB for a day at GHC1.94; 489MB for a day at GHC2.59 and; 796 for a day at GHC3.89.

The action of the NCA was interpreted by a section of the public as a means to punish or stifle MTN’s operations.

Read The NCA’s Interpretation of SMP Here: PUBLIC-INFORMATION-what-SMP-means