Announcement of MTN’s market dominance is to ensure fair competition – NCA

The National Communications Authority has stated that it will still ensure there is fair and healthy competition in the telecommunications industry despite its declaration of MTN Ghana as a Significant Market Power (SMP).

In a statement explaining the implications of MTN as an SMP, the NCA said that the decision was reached after careful consideration and based on extensive research and analysis.

“The classification of MTN as an SMP is not taken lightly or without careful consideration. It was based on extensive research, market analysis, and consultations”, the authority stated, adding that the decision was within their mandate.

The NCA observed that the decision was not meant to punish or stifle operations but rather to foster an even playing field among all mobile network operators (MNOs).

The authority explained that “when an operator attains a significant Market share and dominance, it has the potential to negatively impact competition, resulting in higher prices, lower quality of services, and reduced innovation. The SMP designation allows the NCA to impose certain regulations and measures on MTN to prevent abuse of its market power and ensure healthy competition.”

The NCA noted, however, that the classification does not prevent MTN from scaling up its business further.

Below is the statement from the NCA: