MTN Ghana has announced his intentions to seek judicial review of government naming it a significant market power (SMP) in the telecoms market.
Government made the declaration June 8, 2020 as a measure to correct what it termed the imbalance in the telecoms market, in terms of market share and revenue share.
It noted MTN has, for three years running, had about 75 per cent market share, plus an equally huge revenue market share underpinned by some 94 per cent share of the mobile money market.
As a result, government asked the industry regulator, National Communications Authority to implement some regulatory measures to correct the imbalance.
MTN said it had since been dialoguing with the NCA, and while those dialogues were going well, NCA is implementing regulatory measures which are the subject of discussion.
MTN said it has therefore been compelled to resort to the law courts and seek a review of the whole move.
Below is the full satenent from MTN.
Scancom Plc. (MTN Ghana) would like to inform its stakeholders that the company was formally notified on June 9th, 2020 of the National Communications Authority’s (NCA) decision to declare MTN as a Dominant/Significant Market Power (SMP). 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. 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.
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.
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 modern connected life.
We have indeed collaborated with the Government over the period to invest in priority projects that have all contributed to our 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.
MTN Ghana would like to reiterate 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.
MTN Ghana would like to reassure 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.
About MTN Ghana
MTN Ghana is the market leader in the increasingly competitive mobile telecommunications industry in Ghana, offering subscribers a range of exciting options under Pay Monthly and Pay As You Go Services and Mobile Financial Services. The company has committed itself to delivering reliable and innovative services that provide value for subscribers in Ghana’s telecommunications market. Since its entry into Ghana in 2006, MTN has continuously invested in expanding and modernizing its network in order to offer superior services to a broad expanse of the nation.
