Accra, Ghana, June 2020//-Scancom Plc, the parent company of MTN Ghana today announced that it is challenging the National Communications Authority’s (NCA’s) decision to declare MTN as a Dominant/Significant Market Power (SMP) in the law courts.
The Corporate Services Executive of MTN Ghana, Samuel Koranteng who announced this in a press statement, explained the telecoms giant is resorting to the courts after several engagements with the NCA, the industry regulator.
The statement said: “While these engagements have been largely encouraging, the NCA continues with implementation of the specified interventions.
As such, MTN Ghana has after much consultation, and as a last resort, made the difficult decision to resort to the Law Courts for redress in the form of a judicial review of NCA’s decision, to ensure the observance of the requirements of procedural fairness”.
Why the SMP
On June 8, 2020 -Ghana’s government through its NCA announced that it would in the coming days begin the implementation of specific policies to ensure a level-playing field for all network operators within the telecommunications industry.
This was contained in a press release issued by the sector minister, Mrs Ursula Owusu-Ekuful.
Government, through the Ministry of Communications, had directed the NCA to enforce the provisions of the Electronic Communications (EC) Act 2008 and the National Telecommunications Policy to address glaring disparities in market share and revenue share in the sector.
This Policy Directive is motivated by evidence of a growing market imbalance and creation of a near monopoly in the telecom sector. This imbalance potentially exposes the country to the dictates of the dominant operator and negatively impacts on competition and choice for the consumer as well as investments within the sector. But MTN Ghana has disagreed.
MTN Ghana was formally notified on June 9th, 2020 of the NCA decision to declare it as a Dominant/Significant Market Power (SMP).
Regulatory restrictions could stifle growth
This essentially means that special regulatory restrictions would be enforced to potentially limit the company’s growth, performance, innovativeness and its competitiveness in the telecoms market.
MTN Ghana acknowledges the NCA’s duty and powers to promote fair competition amongst licensed operators in Ghana’s telecommunications sector within the relevant laws of Ghana and acceptable global industry best practices, according to the statement.
“Regretfully, the manner of the recent declaration of MTN as a Dominant/SMP raises concerns about clear procedural breaches and substantive issues.
Following the NCA’s declaration, MTN Ghana refrained from publicly commenting on the matter and engaged in dialogue with the regulatory authority and other stakeholders to share our views on the matter”.
Opposed to steps by the regulator
MTN Ghana reiterated that it is not opposed to steps by the Regulator to enhance further the highly competitive Ghana telecoms industry and is indeed prepared to support the Regulator to that end.
“However, we believe that the regulatory authority must follow the applicable legislations and global industry best practices. As a responsible and ethical leader, MTN is neither aware of any industry economics / market study to establish market failure nor has MTN taken any steps or engaged in anti-competitive behavior. We remain open to dialogue to achieve an amicable resolution to this matter”.
Confidence in the Ghana telecommunications sector
MTN has over the years shown confidence in the Ghana telecommunications sector, by the continued investment in hitherto undervalued ventures (e.g., rural telephony, broadband services, 4G technology, new innovations, mobile money etc.) to support the development of the industry and to deliver on our belief that everyone deserves the benefits of a modern connected life.
The statement added that MTN Ghana had indeed collaborated with government over the period to invest in priority projects that have all contributed to their current position in the market.
The high proliferation of choice in the Ghanaian telecoms market aided by Mobile Number Portability, Network interoperability, very affordable SIMs and accompanying multiple SIM handsets are all indicators of a free and competitive market.
Reassurance
MTN Ghana reassured the government and its cherished shareholders and customers that “our commitment to the delivery of a bold new digital world in Ghana continues to be paramount and that the company remains focused on providing the enabling technology to support Ghana’s digital economy particularly during the COVID-19 pandemic and beyond”.
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