MTN Ghana, a leading telecommunications company, has commenced the implementation of its recently announced price adjustment across its entire range of products and services.
According to an earlier circular to customers, MTN had specified that the prices on calls, SMS, data, and other offerings were going to be revised upwards.
MTN Ghana attributed the upward adjustment to escalating operational costs.
“Dear Valued Customer, kindly be informed that effective 28th November 2023, the prices of MTN products will be revised upwards due to increased operational costs. Continue enjoying our special offers on our network. Visit our website www.mtn.com.gh for more details. Thank you.”
MTN
Per the updated tariff structure, the 4.3-gigabyte Turbonet fixed bundle has now been pegged at GHS43. Also, the 91-gigabyte bundle has been revised to GH₵253, and the 350-gigabyte bundle is currently priced at GH₵516.
MTN’s Broadband Special Bundles have also experienced upward adjustments. A fee of GH₵150 will now afford access to a 39-gigabyte bundle, while GH₵300 will provide users with a 195-gigabyte bundle.
Data and Airtime Costs In Ghana’s Telecom Landscape
In the rapidly evolving telecommunications landscape of West Africa, the cost of data and airtime continues to be a critical determinant of digital inclusion, economic development, and business operations.
Ghana has witnessed a surge in mobile data usage propelled by increased smartphone penetration and digital services with over 45 million mobile phone connections. However, in comparison to its peers, Ghana struggles with higher data costs per gigabyte. Nigeria, with its expansive population, benefits from a more competitive telecommunications market, resulting in relatively lower data prices at an average of USD 0.39 per GB. Similarly, Côte d’Ivoire and Senegal, though less populous than Nigeria, have managed to maintain competitive pricing structures.
Airtime, vital for voice communication, demonstrates variations within the sub-region. Like its peers, Ghana has experienced a decline in traditional voice calls due to the rise of internet-based communication. While the cost per minute may differ, the overarching trend across West Africa indicates a shift toward more affordable voice communication, with providers adapting to changing consumer preferences.
The regulatory environment plays a pivotal role in shaping the telecommunications landscape. Nigeria stands out for implementing policies that encourage competition, resulting in lower data costs. Côte d’Ivoire and Senegal have also taken steps to foster a competitive market, positively impacting affordability.
In contrast, Ghana faces the challenge of reconciling profitability for service providers with the need for affordable connectivity.
The impact of these cost differentials is acutely felt by businesses operating in Ghana. High data costs in Ghana potentially restrict businesses from fully harnessing digital platforms for marketing, communication, and transactions. Conversely, businesses in Nigeria, benefiting from lower data costs, may find it more feasible to invest in digital strategies that enhance their competitive edge.
Consumers, too, face disparities in accessing the digital economy. Lower data costs in some neighboring countries contribute to a more digitally engaged population, enabling individuals to participate actively in online activities, e-commerce, and digital services.
The comparative analysis of data and airtime costs in Ghana and its sub-regional peers underscores the complexities and challenges faced by businesses and consumers alike. It emphasizes the need for Ghana to continually review its regulatory policies, foster healthy competition among service providers, and strike a balance that promotes both profitability and affordability.
The price hike is feared to further expand the inequality gap in the digital economy which is budding well in the country. The continuous hikes may be a significant barrier to the onward march of the digitalization agenda of government.
Notably, Ghana is ranked the 33rd country among 237 countries with the cheapest data on the Cable.co.uk June-September 2023 Worldwide Mobile Data Report. The report which measured the average cost of one gigabyte was calculated from over 5600 mobile data plans worldwide. Ghana came ahead of Australia, Kenya, China, among others.
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