The National Communications Authority (NCA) issued a press release to address concerns about data pricing and the designation of MTN as a company with Significant Market Power (SMP)
The NCA noted that its classification of MTN as a company with Significant Market Power (SMP) is in line with the authority’s mission to promote fair competition and protect consumer interests in the telecommunications sector, fulfilling the NCA’s mandate to ensure a level playing field.
“The National Communications Authority (NCA) has taken note of some public concerns, especially on social media, regarding high internet data pricing, and the declaration of MTN as a Significant Market Power (SMP). The NCA understands the concerns of consumers”.
National Communications Authority
Through the SMP designation, the NCA monitors MTN’s prices to ensure they are fair and reasonable, preventing predatory pricing that could harm consumers and stifle competition.
This regulation also encourages MTN to invest in infrastructure and improve service quality
The NCA further stated that, as the primary regulatory body for the communications sector, is committed to fulfilling its statutory responsibility to enable smaller operators to leverage MTN’s resources, improving their services and expanding their reach.
The statement reiterated that by upholding its regulatory mandate, the NCA aims to foster an innovative market environment that benefits both consumers and service providers alike.
The NCA also stated that “it is important to note that the SMP classification is not intended to punish or stifle MTN’s operations”.
As an SMP, MTN holds a significant market share, enabling it to influence prices, output, and innovation.
The NCA’s classification acknowledges MTN’s dominant position and imposes specific regulations to prevent anti-competitive practices.
The NCA announced that it will implement measures like differential interconnection rates, equal tariffs, and technology-neutral policies to boost competition, drive innovation, and safeguard consumer interests, ultimately creating a fair and dynamic market ecosystem.
The Authority assured that by implementing these measures other operators can compete vigorously, offer affordable and sustainable pricing, and invest in enhancing service quality.
This, according to the NCA, will ultimately lead to improved outcomes for consumers and a more robust telecommunications market.
NCA Affirms Commitment To Quality Internet Access And Digital Inclusion
Moreover, the National Communications Authority reiterated its commitment to collaborating with all stakeholders to guarantee that consumers enjoy reliable, high-quality internet access, and to promote a resilient and inclusive digital ecosystem that supports the needs of all users.
In response to public criticism, the NCA countered that Ghana boasts one of the most affordable internet access regimes in the region, providing citizens with relatively cheap and widespread connectivity, despite the challenges faced by the industry.
“Furthermore, data from a report published by cable.co.uk, and reviewed by the Authority as part of a regular Billing Monitoring exercise, ranked Ghana 3rd in Africa as the country with the cheapest cost pricing for mobile internet data and 2nd in the West African Region”.
National Communications Authority
Meanwhile, pursuant to the Electronic Communications Act, 2008 (Act 775), the regulator designated MTN Ghana as a Significant Market Power (SMP).
This action by the NCA is to address the market imbalances in voice, data, and SMS services and foster a more competitive telecommunications market, promoting healthier competition and innovation.
However, a social media campaign has been gaining traction, with many users voicing their discontent and protesting against the high cost of data and the frequent disruptions in data services, highlighting the need for more affordable and reliable internet access.
Online users, dissatisfied with the NCA’s handling of issues, escalated their demands, calling for the dissolution of the NCA board.
Netizens also expressed their discontent with the Authority’s management of the telecommunications sector, seeking more effective and consumer-centric governance.
The public has expressed concern that by designating MTN as an SMP, the NCA is effectively limiting consumer choice, potentially forcing subscribers to opt for alternative services they may not prefer or need.
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