Ghana's regulator addresses mobile data cost complaints

Ghana's National Communications Authority (NCA) has addressed Internet and mobile data pricing as well as MTN Ghana being declared a Significant Market Power (SMP).

The Authority's response came after what it called "a public outcry" regarding high Internet data pricing in the country and MTN Ghana's status as an SMP, with the regulator saying that it understood the public's concerns.

"As the regulatory authority for the communications sector, the NCA is entrusted with the responsibility of upholding fair competition and safeguarding consumer interests within the telecommunications industry," the NCA said in a statement.

Therefore, the NCA said the classification of MTN as an SMP aligns with its mission and fulfils its mandate.

"It is important to note that the SMP classification is not intended to punish or stifle MTN's operations but rather to ensure a level playing field in the market and protect consumer choice," the NCA explained.

Public outcry

According to local media, Ghanaians have called for the dissolution of the NCA board due to high data costs and unreliable data supply, which some attribute to MTN's declaration as an SMP back in 2020.

In attempts to level the playing field, in July 2023, the NCA introduced technology neutrality to tackle non-SMP concerns in the telco industry.

"By implementing measures such as asymmetric interconnection rates, tariff parity, and technology neutrality, the NCA aims to promote competition, encourage innovation, and protect consumers' interests," the Authority explained.

According to the NCA those measures enable other operators to compete effectively, offer sustainable pricing, and invest in improving service quality.

To debunk public concerns, the NCA has quoted a 2023 report published by cable.co.uk, which was reviewed by the NCA as part of a regular Billing Monitoring exercise.

The NCA claimed that the report ranked Ghana as the third cheapest for mobile Internet data and second cheapest in the West African Region.

"The NCA wishes to assure consumers that it will continue to work closely with all relevant stakeholders to ensure reliable internet access," the Authority concluded.

MTN Ghana weighs in

According to Ghanaian website NewsGhana.com, MTN Ghana's Chief Corporate Services and Sustainability Officer, Adwoa Wiafe, addressed the company's SMP declaration with the Parliamentary Select Committee on Communication.

"The NCA has provided the rationale behind our current data pricing structure, emphasizing comparative affordability within the sub-region. As a designated significant market player, our pricing strategy is subject to specific regulatory mandates intended to enhance market competitiveness," she told the committee.

The NCA said the classification of MTN as an SMP aligns with its mission and fulfils its mandate. (Source: MTN Group).

Back in 2020, the NCA classified MTN as a "Dominant/Significant Market Power" and implemented a set of policies to reduce its dominance in the telecom market.

The mobile operator initially tried to fight the matter in court, but later withdrew the court case, choosing to focus instead on finding an amicable resolution with the regulator.

According to statistics from market research company Omdia, a sister company of Connecting Africa, MTN Ghana is the most dominant operator, with an estimated 27.9 million mobile users at the end of the second quarter of 2024.

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The second biggest mobile operator in the country, Telecel Group had 8.9 million mobile users around the same time.

Meanwhile, AT Ghana had 5.1 million users, leaving Glo Mobile with just an estimated 344,340 users around the same time.

*Top image source: Image by ASphotofamily on Freepik.

— Matshepo Sehloho, Associate Editor, Connecting Africa