Getting your Trinity Audio player ready...
|
Minister for Communications, Digital Technology, and Innovations, Sam George, has criticized the previous New Patriotic Party (NPP) administration for using MTN Ghana’s Significant Market Power (SMP) classification as a tool for punishment rather than market correction.
Speaking during his vetting before Parliament’s Appointments Committee on January 30, George argued that the NPP government misapplied the SMP framework, failing to address market imbalances.
“The previous administration used the SMP tool as a punitive measure. The SMP tool is meant to be a corrective measure. In fact, since the Minister declared MTN an SMP, their market share has grown, instead of fixing the distortion in the market,” he stated.
He assured that under the Mahama administration, the SMP classification would serve its intended purpose—to promote fair competition rather than penalize investors.
**“We will use the SMP as a corrective tool, not to punish an investor who has made a solid investment in our country over the past years, but also to make sure that we create an equitable playing space for all the players so that the customer has a multiplicity of options to benefit from.
“So the SMP will be used as a corrective tool, not as a punitive tool under the Mahama Administration,”** he added.
The National Communications Authority (NCA) granted MTN SMP status in 2020, allowing regulators to introduce corrective measures aimed at reducing the company’s dominance. With MTN controlling over 57% of the voice market and more than 67% of the data market, the NCA sought to enhance competition and protect consumers.
Under the Electronic Communications Act, 2008 (Act 775), the NCA was empowered to impose price controls, regulate charges, and ensure fair market access for all industry players.
However, despite these interventions, MTN Ghana has continued to expand its market share. According to the company’s third-quarter 2024 report, its mobile subscriber base grew by 10.8% to 28.6 million, while active data users increased by 17.3% to 17 million. Additionally, the Mobile Money (MoMo) service saw an 18.1% rise, reaching 17 million active users.