Ghana: NCA to oversee tariff regulations in telecom market

By InstinctBusiness Mar 5, 2024 0

Ghana’s telecom industry is set for a shakeup as the National Communications Authority (NCA) prepares to regulate how often Mobile Network Operators can adjust their tariffs.

This move comes specifically in response to the dominance of MTN Ghana as a Significant Market Power (SMP) in 2020.

Traditionally, the NCA has allowed mobile network operators to set their prices.

However, MTN’s market share, exceeding 75% across voice, data, SMS, mobile money, and revenue, has triggered intervention under Section 25 of the Electronic Communications Act (Act 775). This section empowers the NCA to regulate prices when a single dominant player exists or engages in anti-competitive practices.

The NCA had previously accused MTN of violating SMP rules by offering lower-priced data bundles compared to competitors. These practices raise concerns about potential predatory pricing to drive smaller players out of the market.

Indeed, in February last year, NCA reported that they saved the non-significant market power operators about 30% of the money to be paid to MTN for asymmetrical interconnect asymmetrical interconnect fees of about GH¢86.6 million.

This the NCA intends to help in correcting the market imbalance.

source:myjoyonline.com