Ghana’s telecommunications sector is poised for a major shake-up should parliament approve the Minister-designate for Communications, Samuel Nartey George.
Samuel Nartey George has pledged to review the Significant Market Power status of the telecommunication giant, MTN in the interest of the wider sector and Ghanaians.
The Minister-designate has observed that the declaration of the MTN as an SMP was more punitive to the market as other competitors took a hit following the decision. He explains that following the decision by the previous administration, MTN has gained an undue advantage as its market share has continued to grow to the detriment of other players.
This development, the MP for Ningo Prampram raises concerns about whether the policy has truly fostered competition as it was intended.
Justifying his convictions before the Appointments Committee of Parliament on Thursday, January 30, 2025, Sam George as widely known explained that, “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.”
The latest industry data published by the National Communications Authority (NCA) in December last year and cited by The High Street Journal reveals that MTN holds the largest share of mobile voice in the country. It has over 28.6 million mobile subscribers representing a whopping 75% of the entire market. Telecel follows with 17% while AirtelTigo comes with just 7.5%. Of all the total SIMs registered in the country, MTN has 75% while Telecel and AirtelTigo possess just 15% and 10% respectively.
When given the opportunity, the minister-designate pledged to the committee to use the SMP as a corrective tool to address the anomalies created in the market.
In his view, all companies who have made investments in the country’s telecommunication sector must have a level playing field to operate.
“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,” he pledged.
The commitment of the minister-designate signals a potential for a more balanced approach to regulating the sector. The sector could be on the verge of a transformation that benefits consumers, businesses, and investors alike.
For consumers, it is the expectation that this shake-up will address one of the biggest concerns for mobile users in Ghana which is the high cost of data and airtime. With MTN’s dominant position in the market, competitors have struggled to match its pricing and reach.
It is the anticipation of customers that the corrective measures on SMP will introduce fairer competition which will translate into cheaper call rates, more affordable data packages, and improved service quality.
