BTA2023 The Minister-Designate for Communication, Digital Technology, and Innovations, Sam George, has announced plans to reassess the Significant Market Power (SMP) classification imposed on MTN Ghana. He argues that the policy, which was originally introduced to correct market imbalances, has failed to achieve its intended purpose and requires a thorough review.
SMP Policy Under Scrutiny
During his vetting by Parliament’s Appointments Committee on January 30, Sam George criticized the previous New Patriotic Party (NPP) administration for allegedly misusing the SMP classification as a punitive measure against MTN rather than implementing it to foster fair competition. He highlighted that despite the restrictions placed on MTN since its SMP designation in 2020, the telecom giant has continued to dominate the market, growing even larger while its competitors have struggled.
“The policy was meant to level the playing field, but MTN’s market share has only expanded, proving that it has not worked as intended,” he stated. “We need a framework that promotes real competition, encourages investment, and ultimately benefits consumers.”
Market Trends Since SMP Designation
MTN Ghana was classified as an SMP by the National Communications Authority (NCA) in 2020 due to its overwhelming control of Ghana’s telecom sector, particularly in voice, data, SMS, and mobile money services. Under the Electronic Communications Act, 2008 (Act 775), the NCA was authorized to impose price controls and implement measures to ensure fair competition.
However, data from the NCA indicates that since the SMP classification, MTN’s market dominance has only intensified:
- Voice Market Share: Grew from 55% in June 2020 to over 75% by December 2024.
- Data Market Share: Increased from approximately 67% to surpass 80%.
- Mobile Money Market Share: Now stands at nearly 90%.
Meanwhile, competitors have continued to lose ground, and consumers have reportedly suffered from higher costs, as MTN was forced to discontinue some of its affordable data bundle offerings due to its SMP status.
A New Approach Under the Mahama Administration
Sam George assured the committee that under a John Mahama-led government, the SMP framework would be reviewed and implemented fairly to create a balanced market without unfairly targeting any single player. He emphasized that regulatory actions should encourage equitable participation in the telecom sector while maintaining an environment conducive to investment and innovation.
“Telecom consumers deserve multiple options, and our policies should reflect that,” he added. “We will work to ensure competition is promoted without undermining businesses that have significantly contributed to Ghana’s digital transformation.”
With this promise, the telecom industry in Ghana could see significant regulatory changes aimed at ensuring a fairer competitive landscape while maintaining the country’s digital growth momentum.
