NCA Accuses MTN for Bridging SMP Rules

The National Communications Authority (NCA), has accused MTN Ghana of violating rules regarding its status as a significant market power (SMP) by launching its affordable Data Zone bundles without the regulator’s permission. 

It would be recalled that recently MTN Ghana was compelled by the NCA to suspend its affordable Data Zone bundles because the market leaders was under a regulatory obligation not to have the lowest prices on the market due to its SMP status.

The declaration of MTN as SMP in June 2020, was because, according to the government, the company had held over 75% market share of the entire telecoms industry for several years, in terms of voice, data, mobile money and revenue. The SMP declaration was therefore meant to correct the market imbalance and allow the smaller players to also be competitive.

In that respect, one of the seven key regulatory interventions was for MTN to raise prices of all of its products and services to march the offerings of the smaller players, and to seek the expression permission of the NCA before introducing any affordable packages to its customers.

Indeed, part of that particular rule is for the NCA to share whatever strategy MTN is about to implement with the other players, so they can also strategize around it and remain competitive in spite of whatever MTN introduces. And if the smaller players are unable to compete with any package MTN plans to introduce, the regulator is likely to prevent MTN from going ahead with it.

According to the Director-General of NCA, Joe Anokye, MTN introduced its Data Zone during the period it was an SMP but did not seek the express permission of the NCA.

He said since that was the first time MTN had violated the SMP rules in two years, they have been cautioned, but the company has been informed that the next time they violate the rules again there will be sanctions.

Meanwhile, in response to a question about how the declaration of MTN as a SMP has helped to correct the market imbalance, the NCA boss showed a pie chart, which rather indicated that between December 2019 and February 20233, MTN has grown its market share from 55% to 67%, while the other telcos have rather lost market share significantly.

He then indicated that one of the SMP rules is for other telcos to pay 30% less interconnect fees than MTN and that leaves them with some money to invest, but was quick to note that it is up to the other telcos to take advantage of the regulatory environment created by the SMP interventions to invest and grow.

Indeed, all industry figures now indicate that MTN keeps growing in leaps and bounds on all fronts, while the other telcos keep dwindling in spite of the SMP interventions.